Invoices overdue for months
Suppliers chasing payment, threatening legal action, or stopping supply.
Most NCLT matters begin as an unpaid invoice, a missed loan instalment, a founder disagreement or a missed filing. Acting in the first few weeks usually resolves them faster and at a fraction of the cost of a tribunal case.
If any of these apply, it is time to act, not wait.
Suppliers chasing payment, threatening legal action, or stopping supply.
A lender writes to you personally as guarantor of the company’s loan.
Co-founders not attending meetings, blocking decisions, or being removed.
AOC-4 and MGT-7 pending for one or more years, or a strike-off notice received.
Match invoices, payments, credit notes and TDS. Many claims fall away once the true outstanding is agreed.
First weekQuality, short delivery or contract breaches must be raised by email or letter, with dates. Oral complaints rarely help later.
As soon as they ariseA signed settlement with instalments and a no-litigation clause protects both sides.
Before any petitionAsk for restructuring, a moratorium or a one-time settlement while the account is still standard or SMA.
At the first missed EMIList every guarantee signed by founders and directors, and negotiate releases or caps as part of any settlement.
NowExit, buy-back and deadlock clauses, or mediation under Companies Act Section 442, can resolve founder disputes privately.
Before an oppression petitionFile pending returns with additional fees and consider compounding, so the company is not struck off and directors are not disqualified.
Before the next due dateA written agreement on the amount, instalments and withdrawal of claims. Works before or soon after a petition is filed.
An OTS or revised repayment schedule agreed with the lender, recorded before the DRT if a case is pending.
A neutral mediator helps shareholders agree an exit, buy-back or new governance terms.
Where the contract has an arbitration clause, the dispute can be resolved privately and confidentially.
MSME suppliers can raise delayed-payment claims under the MSMED Act through the Samadhaan portal.
Whether you settle or go to the tribunal, these records carry the most weight.
| Document | Why it matters |
|---|---|
| Contracts, purchase orders and invoices | Show what was agreed and what is actually owed. |
| Creditor ledger and bank statements | Prove payments made and the true outstanding. |
| Emails and letters raising disputes | Evidence of a pre-existing dispute under the IBC. |
| Loan agreements, sanction letters and guarantees | Define default, security and personal liability. |
| Founders’ and shareholders’ agreements, AoA | Set exit, buy-back and deadlock rules. |
| Board minutes, registers and ROC filings | Show the company was run and recorded properly. |
If you are the creditor or shareholder and talks have failed, a well-prepared petition puts real pressure on the other side.
And the default meets the ₹1 crore threshold for an IBC petition.
You have reminders, meetings and offers on record.
For example, 10% shareholding for an oppression petition.
Contracts, invoices, ledger, notices and replies.
Based on the registered office and the type of claim.
See our guide to filing fees and charges.
Our lawyers will review your situation, tell you which route fits, and help you act before deadlines run out.
No. If you do not pay or reply with evidence of a pre-existing dispute within 10 days, the operational creditor can file a Section 9 insolvency petition before the NCLT. If the default is ₹1 crore or more and there is no genuine dispute, the NCLT may admit the petition, which suspends the board and puts the company under a resolution professional.
A dispute that was raised before you received the demand notice and is genuine, not invented to avoid payment. Evidence includes emails or letters complaining about quality, short supply or breach of contract, a pending suit or arbitration, or credit notes under negotiation. Disputes raised for the first time in the reply to the notice carry much less weight.
Yes. A signed settlement agreement should set out the agreed amount, the payment schedule, what happens on a missed instalment, and the creditor’s commitment not to file or to withdraw any petition. Verbal promises and informal emails are hard to rely on if the relationship breaks down later.
Yes. Before admission, the parties can settle and the creditor can withdraw the petition with the NCLT’s permission. After admission, withdrawal under Section 12A of the IBC needs the approval of 90% of the committee of creditors by voting share. The earlier you settle, the simpler it is.
Not by itself. If the unpaid default still meets the ₹1 crore threshold, the creditor can file or continue the petition. Part payment is most useful when it forms part of a documented settlement of the full claim, with clear terms on the balance.
Yes, especially for co-founder and shareholder disputes. The Companies Act, 2013 provides for mediation and conciliation under Section 442, and parties can also agree to private mediation. A settlement reached in mediation becomes binding once both sides sign it, and it can be placed before the Tribunal if a case is pending.
Yes. Micro and small enterprises registered under Udyam can file a delayed-payment claim before the MSME Facilitation Council under the MSMED Act, through the Samadhaan portal. Buyers who delay beyond 45 days are liable to pay compound interest at three times the RBI bank rate.
When you are the creditor or shareholder, the claim is clear and documented, settlement attempts have failed, and you meet the threshold or standing required, such as a ₹1 crore default for an IBC petition. A well-prepared petition often brings the other side to the table quickly.
Yes. Your first consultation with a bwise360 lawyer is free and carries no obligation. We look at your notice or dispute, tell you whether it can be settled, and set out the deadlines that apply.
This page is general awareness information on Indian law and is not legal advice. Advocacy before the tribunals is handled by enrolled counsel we coordinate with.