The Insolvency and Bankruptcy Code, 2016 transformed how India handles corporate and personal insolvency. For creditors, it created a structured, time-bound mechanism to recover dues. For debtors, it offered a framework for genuine resolution rather than indefinite default. For both sides, it created a new class of high-stakes legal proceedings that require specialists.
Adv. Shailendra Singh is one of those specialists. As Founder & Managing Partner at August Attorneys LLP, and with over 25 years of legal practice, he has been at the centre of IBC jurisprudence since the Code came into force. He has appeared before the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) in complex insolvency matters – representing financial creditors, operational creditors, corporate debtors, resolution applicants, and resolution professionals across different stages of the process.
IBC matters move fast. Once a CIRP is admitted, the moratorium kicks in immediately under Section 14 — freezing all pending litigation, asset sales, and debt recovery proceedings against the corporate debtor. Missing a deadline in an IBC proceeding can mean losing rights that are difficult or impossible to recover.
Beyond speed, IBC proceedings are legally complex. The intersection of the Code with the Companies Act, SARFAESI Act, PMLA, and sector-specific legislation creates situations that require careful analysis. Adv. Shailendra Singh’s background — spanning corporate & commercial law, criminal defence, and insolvency — means he can assess these intersections in real time.
The current threshold is ₹1 crore. This was revised upward from ₹1 lakh during the COVID-19 period and has remained at ₹1 crore since March 2020.
The IBC mandates resolution within 180 days of admission, extendable to 330 days including litigation time. In practice, complex matters often take longer due to contested proceedings.
A secured creditor can choose to realise its security interest outside of liquidation under Section 52, subject to conditions. During CIRP, however, the moratorium applies to all creditors equally.
The moratorium under Section 14 stays all pending suits, arbitrations, and enforcement actions against the corporate debtor. Certain matters — such as criminal proceedings — are excluded from the moratorium.
