Legal Services
NPA Resolution Papervalue is an Investment Banking and Non-Performing Assets (NPA) management firm, matters under Insolvency and Bankruptcy Code (IBC). The company is led by group of professionals providing resolutions to wide spectrum of clients in various industries being in their Pre or Post Stress and Non-Performing Assets (NPA) days.
We provide end-to-end solution for all stakeholders facilitating resolution of stressed assets. Believe in adding value to the society by creating a turnaround story for the clients in stress. We aim to be first choice for Financial Institution as well as Enterprises for distinctive cost effective and prompt Resolution for distressed enterprises. FinLender is one-stop service provider for all kinds of debt resolution services to our clients across diversified sectors & segments.
What we do
SARFAESI Act
The SARFAESI (The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act is a law passed by Indian Parliament in 2002. It allows banks and other financial institutions to auction residential or commercial properties to recover loans.
Under this act secured creditors (banks or financial institutions) have many rights for enforcement of security interest under section 13 of SARFAESI Act, 2002. If borrower makes any default in repayment of loan instalment or interest and his account is classified as Non-Performing Asset (NPA) by secured creditor, then secured creditor is required to issue written notice to the borrower for repayment of due in full within 60 days by clearly stating amount due and intention for enforcement. If borrower does not discharge dues in full within 60 days, then Secured creditor may take possession of the mortgaged assets under section 13(4) of SARFAESI ACT WITHOUT INTERVENTION OF ANY COURT OR TRIBUNAL but with a prior notice to the borrower.
The secured creditors will then file an application under section 14 of the SARFAESI ACT, in the Metropolitan Magistrate Court or The District Magistrate Court as per the jurisdiction of the mortgaged assets in order to obtain the order for forceful physical possession of the assets. Generally the orders under section 14 of the SARFAESI ACT are passed in a period of 3 months in favour of the secured creditors.
The borrower may approach competent court to obtain stay against such orders even against the notice issued under section 13(4) of the said Act.
RDDBFI Act
The RDDBFI (Recovery of Debts Due to Banks and Financial Institutions) Act is a law passed by the Indian Parliament in 1993. The Act provides a legal framework for the expeditious recovery of debts due to banks and financial institutions.
Under the RDDBFI Act, banks and financial institutions are empowered to file cases before the Debt Recovery Tribunal (DRT) for the recovery of debts due to them.
Services to borrowers to effectively handle the matters filed under The Recovery of Debts Due to Banks and Financial Institutions ACT in DRT / DRAT by Banks/ Financial institutions
IBC Act
The Insolvency and Bankruptcy Code, 2016 (IBC) was passed by the Parliament on 11 May 2016, received Presidential assent on 28 May 2016 and was notified in the official gazette on the same day.
The Act provides a comprehensive framework for the resolution of insolvency and bankruptcy cases for companies, individuals, and partnership firms. Under the IBC Act, the process of insolvency resolution is time-bound and provides for a market-led approach to the resolution of distressed assets.
Key Aspects Of The Insolvency & Bankruptcy Code
IBC aims at consolidating all existing insolvency related laws as well as amending multiple legislation including the Companies Act.
The code would have an overriding effect on all other laws relating to Insolvency & Bankruptcy.
The code aims to resolve insolvencies in a strict time-bound manner - the evaluation and viability determination must be completed within 180 days.
Moratorium period of 180 days (extendable upto 270 days) for the Company. Insolvency professional to take over the management of the Company.
Clearly defined ‘order of priority’ or the waterfall mechanism.
The waterfall to render government dues junior to most others is significant.
Establishment of Insolvency and Bankruptcy board as an independent body for the administration and governance of Insolvency & bankruptcy Law; and Information Utilities as a depository of financial information
Legal & Technical Reports
Financial institutions often prepare legal and technical reports to provide expert advice and analysis to their clients. These reports can cover a wide range of topics, from regulatory compliance to risk management, and are designed to help clients make informed decisions based on the best available information. Here are some key considerations for preparing legal and technical reports:
Know the purpose and scope of the report: This can help ensure that the report is relevant to the client's needs and covers all the necessary information. It is also important to be clear about the limitations of the report and any assumptions that have been made.
Gather and analyze the relevant data: Financial institutions need to gather and analyze the relevant data to ensure that the report is accurate and reliable. This can involve reviewing financial statements, analyzing market trends, and conducting risk assessments, among other things.
Use clear and concise language: Legal and technical reports can be complex and technical, but it is important to use clear and concise language to ensure that the report is easy to understand.
Follow standard formats and conventions: Legal and technical reports should follow standard formats and conventions to ensure that they are easy to read and navigate. This can include using headings and subheadings, tables, graphs, and footnotes, among other things.
Ensure accuracy and objectivity: Legal and technical reports must be accurate and objective, and should not contain any errors, biases, or opinions that are not supported by the available data.
Legal Audit
A legal audit is a comprehensive review of an organization's legal and regulatory compliance. This type of audit can be performed by internal legal and compliance teams or by external auditors, and is designed to identify and address any potential legal or regulatory risks that the institution may face.
Key Considerations for financial institutions when conducting a legal audit:
Define the scope of the audit: The scope of the audit should be clearly defined, and should cover all areas of the institution's operations that are relevant to legal and regulatory compliance.
Identify the relevant laws and regulations: Financial institutions need to identify the relevant laws and regulations that apply to their operations, and ensure that they are in compliance with them.
Review internal policies and procedures: Financial institutions should review their internal policies and procedures to ensure that they are in compliance with the relevant laws and regulations.
Conduct interviews and site visits: They may need to conduct interviews with key personnel and visit various sites to gather information and assess compliance with legal and regulatory requirements
Identify areas for improvement: The legal audit should identify areas where the institution can improve its legal and regulatory compliance, and provide recommendations for addressing these areas.
Conducting a legal audit is an important step to ensure that they are in compliance with legal and regulatory requirements. By following these key considerations, financial consulting institutions can identify potential risks and areas for improvement, and develop a plan for ongoing compliance that protects the institution and its clients.
Corporate Law
Corporate law is a complex area of legal practice that deals with the formation, management, and dissolution of corporations. For financial institutions, an understanding of corporate law is essential for advising clients on a range of corporate issues, including mergers and acquisitions, corporate governance, compliance with regulations, and litigation.
Here are some key considerations:
Understanding the legal structure of corporations
Advising on corporate governance
Supporting mergers and acquisitions
Ensuring compliance with regulations
Representing clients in litigation
Industrial Disputes
Industrial disputes are disagreements between employers and employees or their respective representatives that arise from issues related to employment, such as wages, benefits, working conditions, and job security. For financial institutions, industrial disputes can have a significant impact on their operations and profitability, as well as their reputation in the industry.
Here are some key considerations:
Stay up-to-date on relevant laws and regulations.
Foster good communication with employees
Develop and implement fair employment policies
Maintain good relationships with labour unions
Establish a dispute resolution process
Licensing & Liasioning
Licensing refers to obtaining legal permission or authorization from the relevant regulatory bodies to conduct financial advisory or consulting services, while liaisoning involves establishing and maintaining productive relationships with regulatory authorities, government bodies, and other relevant stakeholders.
The licensing varies depending on the regulatory framework and jurisdiction in which the institution is located. In most countries, they must obtain licenses from relevant regulatory authorities, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA), before they can commence operations.
Once a financial consulting institution has obtained the necessary license, it must maintain a positive relationship with the regulatory authorities and other stakeholders.
Effective liaisoning is critical to the success of a financial institution. By building positive relationships with regulatory authorities and other stakeholders, they can establish themselves as trusted and respected members of the financial community. This, in turn, can help them attract new clients, increase their reputation, and enhance their long-term prospects for success.
Legal Will
A legal will is a critical document that outlines how a person's assets and liabilities will be distributed in the event of their death. Having a legal will is essential to ensure that the business continues to operate effectively after the death of the owner or key personnel.
One important aspect of a legal will for a financial institution is identifying a successor to the owner or key personnel. The successor should be identified and given clear instructions on how to take over the business, including any necessary training, access to critical business information, and financial resources.
Another important aspect is identifying a trustee or executor who will manage the assets and liabilities of the business after the death of the owner or key personnel. The trustee or executor should be someone who is trustworthy and has the necessary skills and expertise to manage the financial affairs of the business.