Corporate insolvency and company disputes in India are primarily handled by the National Company Law Tribunal (NCLT). Over the last few years, NCLT proceedings under the Insolvency and Bankruptcy Code (IBC) have transformed the recovery landscape for creditors and businesses alike.
Whether you are:
- A bank or financial institution
- An MSME or operational creditor
- A company facing insolvency
- A promoter dealing with personal guarantee proceedings
Hiring an experienced NCLT lawyer is not optional — it is strategic.
This comprehensive 2026 guide covers everything you need to know about NCLT lawyers in India: their role, types of cases, filing process, legal fees, common mistakes, recent developments, and how to choose the right advocate.
1️⃣ What is NCLT and Why Do You Need an NCLT Lawyer?
The National Company Law Tribunal is a quasi-judicial authority established to adjudicate:
- Corporate insolvency resolution
- Liquidation proceedings
- Oppression and mismanagement disputes
- Mergers, restructuring, and corporate litigation
- Matters under the Insolvency and Bankruptcy Code
IBC proceedings are technical, time-bound, and document-heavy. Even minor procedural defects can result in rejection at the admission stage.
Role of an NCLT Lawyer in Insolvency Matters
An NCLT advocate typically:
- Evaluates existence of “default”
- Drafts Section 7, Section 9, or Section 10 petitions
- Issues statutory demand notices
- Represents clients at admission hearings
- Advises during Corporate Insolvency Resolution Process (CIRP)
- Appears in appeal before the National Company Law Appellate Tribunal (NCLAT)
- Handles matters up to the Supreme Court of India
In insolvency law, drafting precision often determines success.
2️⃣ Types of Cases Handled by NCLT Lawyers
🔹 Section 7 – Financial Creditor Applications
Banks and financial creditors initiate insolvency when a company defaults on loan repayment.
The Supreme Court in
Innoventive Industries Ltd v ICICI Bank
clarified that once default is established, NCLT must admit the petition if the application is complete.
This strengthened creditor rights significantly.
🔹 Section 9 – Operational Creditor Applications
Suppliers, vendors, and service providers file insolvency petitions after issuing a valid 10-day demand notice.
However, the Supreme Court in
Mobilox Innovations v Kirusa Software
held that existence of a pre-existing dispute can defeat a Section 9 application.
This makes legal drafting and documentation absolutely critical.
🔹 Section 10 – Corporate Applicant Filing
Companies themselves may initiate insolvency when they are unable to service their debts.
🔹 Other Key Matters Before NCLT
- Oppression & mismanagement
- Reduction of share capital
- Scheme approvals
- Personal guarantor insolvency
An experienced NCLT lawyer must understand both company law and insolvency jurisprudence.
3️⃣ Step-by-Step NCLT Filing Process (Complete Guide)
If you’re searching “How to file NCLT case”, here is the structured process:
Step 1: Confirm Default
Minimum threshold under IBC is ₹1 crore.
Step 2: Issue Demand Notice (Section 9 cases)
A 10-day statutory notice is mandatory.
Step 3: Prepare Petition
- Form 1 (Financial Creditor)
- Form 5 (Operational Creditor)
Attach: - Contracts
- Invoices
- Bank statements
- Proof of default
Step 4: Admission Hearing Before NCLT
The Tribunal verifies:
- Existence of default
- Completeness of application
- Absence of pre-existing dispute
Step 5: CIRP Initiation
Upon admission:
- Moratorium is imposed
- Interim Resolution Professional (IRP) appointed
- Committee of Creditors (CoC) formed
Step 6: Resolution or Liquidation
IBC mandates 180-day timeline (extendable).
Appeals lie before NCLAT and further before the Supreme Court.
4️⃣ NCLT Lawyer Fees in India (2026 Updated)
Legal fees vary depending on claim value, complexity, and location.
Estimated Professional Fees:
- Drafting & Filing: ₹75,000 – ₹3,50,000
- Per Hearing Appearance: ₹15,000 – ₹1,00,000
- Complete CIRP Handling: Case-specific
- Senior Counsel Fees: Separate
Metro cities generally command higher fees.
⚠️ Always seek clarity on:
- Scope of work
- Number of hearings included
- Additional costs (court fees, RP expenses, documentation)
5️⃣ How to Choose the Best NCLT Lawyer in India
Choosing the right NCLT advocate requires evaluating:
✔ Experience in IBC litigation
✔ Track record at admission stage
✔ Knowledge of latest judicial precedents
✔ Strategic understanding of recovery
✔ Ability to handle appellate litigation
Insolvency proceedings are not just about filing — they are about outcome strategy.
6️⃣ Common Mistakes While Filing NCLT Petitions
Many insolvency petitions fail due to:
- Defective demand notice
- Pre-existing dispute (Mobilox principle)
- Incomplete authorization
- Missing documentation
- Incorrect calculation of default
An experienced NCLT lawyer mitigates these risks.
7️⃣ Recent Trends in NCLT & IBC (2025–2026)
The insolvency ecosystem continues to evolve:
- Pre-pack insolvency framework for MSMEs
- Increased personal guarantor proceedings
- Digital court processes
- Growing focus on resolution over liquidation
- Rising pendency across benches
Staying updated with amendments and judicial interpretations is essential for effective legal representation.
8️⃣ Frequently Asked Questions (FAQs)
What is the minimum amount to file NCLT case?
₹1 crore default under IBC.
How long does NCLT take to admit a petition?
Statutory timeline is 14 days; practical timelines may vary.
Can MSME file under IBC?
Yes, as operational creditor.
Is NCLT better than civil recovery suit?
IBC is a structured insolvency resolution mechanism.
Can insolvency be withdrawn after filing?
Yes, subject to procedural compliance.
Can promoter settle after admission?
Settlement possible, subject to approval.
Who appoints IRP?
NCLT appoints IRP upon admission.
Is appeal allowed against NCLT order?
Yes, before NCLAT and Supreme Court.
Strategic Insolvency & Recovery Support – LegalFund
Filing a case before the National Company Law Tribunal is only the beginning. The real objective is not just admission — it is actual financial recovery.
At LegalFund (www.legalfund.in), we go beyond legal paperwork. We support businesses, MSMEs, and creditors with structured insolvency strategy and recovery-focused solutions.
What Makes LegalFund Different?
✔ No Upfront Cost in Eligible Matters
We do not charge upfront legal funding fees for approved cases.
✔ No Win, No Fee Model
If your case is unsuccessful and there is no recovery, you do not pay us.
Our compensation is linked to successful recovery.
✔ Risk Sharing Approach
We deploy capital and strategic support only after careful due diligence.
We succeed only when you recover.
✔ Recovery-Oriented Strategy
We assist in:
- Structuring insolvency filings
- Supporting NCLT-driven recovery actions
- Enforcement and execution planning
- Strategic coordination with legal teams
Unlike traditional legal expense models where clients bear full financial risk, LegalFund aligns its interest with your outcome.
Why This Matters for Creditors & MSMEs
Insolvency litigation can be expensive and time-consuming. Many genuine creditors hesitate to initiate action because of:
- High legal fees
- Uncertain outcome
- Cash flow pressure
Our model reduces financial risk and enables businesses to pursue legitimate recovery without immediate capital strain.
We focus on converting legal rights under the Insolvency and Bankruptcy Code into actual monetary realization — not just court orders.
Simple Principle:
If you win and recover — we share success.
If you lose — you don’t owe us funding fees.
That is structured, strategic, and aligned recovery support.