Skip to content
← Sectors

Financial Institutions

Debt recovery, insolvency and regulatory proceedings for banks and other lenders.

Overview

Banks, non-banking financial companies and other financial creditors instruct the firm in debt recovery, security enforcement and insolvency proceedings. It also advises insurers on claims arising from banking frauds, audit failures and regulatory investigations at financial institutions. The team appears before the Debts Recovery Tribunals, the National Company Law Tribunal and their appellate tiers, the High Courts and arbitral tribunals. The work spans litigation, arbitration and contentious advisory mandates for clients in India and overseas.

The legal framework

Recovery and enforcement proceed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, the Recovery of Debts and Bankruptcy Act 1993 and the Insolvency and Bankruptcy Code 2016, before the Debts Recovery Tribunals, the National Company Law Tribunal and their appellate tiers. Sector regulation rests on the Banking Regulation Act 1949 and the Reserve Bank of India Act 1934, with the Securities and Exchange Board of India Act 1992 and the Securities Contracts (Regulation) Act 1956 engaged where a securities intermediary is concerned. The writ jurisdiction of the High Courts, and appeals to the Supreme Court, sit above both.

Scope

  • Applications under section 7 of the Insolvency and Bankruptcy Code 2016 before the National Company Law Tribunal, and appeals before the National Company Law Appellate Tribunal.
  • Debt-recovery litigation for public sector banks before the High Courts, the Debts Recovery Tribunals and the Debts Recovery Appellate Tribunals.
  • Enforcement of security interests and protection of lenders' securitisation rights over the assets of corporate debtors.
  • Loan-recovery arbitrations for non-banking financial companies, including disputes over set-off and cross-collateralisation clauses in financing documents.
  • Insolvency proceedings arising from cross-defaults by co-borrowers and group companies, and guarantor and personal insolvency proceedings.
  • Representation of committees of creditors in challenges to the approval of resolution plans.
  • Proceedings for resolution professionals and liquidators on limitation, deposit of resolution plan monies and closure of liquidation processes.
  • Defence of banks in writ actions challenging Look-Out Circulars, wilful defaulter classifications and fraud declarations.
  • Representation of security trustees for lenders, and of banks in inter-se disputes between consortium lenders.
  • Advice to insurers on D&O and E&O claims arising from banking frauds, audit failures and regulatory investigations at financial institutions.