An NCLT or insolvency matter is billed differently from an ordinary court case, because the work is driven by the Code and by the tribunal's rules rather than by a plaint and a hearing list. The fee depends on what kind of application it is, whether the debt is admitted or disputed, how far the matter runs before the National Company Law Tribunal, and whether it ends at admission or continues into resolution. Anyone who quotes a number before reading the ledger, the invoices and the demand notice is guessing.
What an NCLT matter involves
The Kolkata Bench of the National Company Law Tribunal hears insolvency applications under the Insolvency and Bankruptcy Code 2016. A financial creditor applies under section 7, an operational creditor applies under section 9 after first serving a demand notice under section 8, and a corporate applicant files its own application under section 10. The Code prescribes a minimum default threshold, and the threshold in force on the date of filing must be confirmed before the application is drafted. The same tribunal also hears company-law petitions under the Companies Act 2013, such as schemes of arrangement, and those are a different kind of work with a different fee structure. Our insolvency and bankruptcy practice covers applications, replies and appeals.
How advocates charge for NCLT and insolvency work
- A fixed fee for drafting and filing the application. Preparing the application, the documents and the affidavit is closed work once the record is read.
- A stage fee for admission. The hearing at which the tribunal considers admission is often billed as its own stage, because the tribunal may require further documents or a fresh service.
- A per-hearing appearance fee. Ongoing appearances before the Bench are usually charged per date, since insolvency lists are heavy and dates move.
- A retainer. Banks and trade creditors with a steady flow of recovery matters often prefer a monthly arrangement covering a defined volume.
A paid consultation is where the debt is examined: whether it is admitted or disputed, whether there is a security interest, whether there is a pre-existing dispute that defeats the application, and whether a settlement before filing is the better route. Our published consultation and appearance fees are on our pricing page.
What is not covered by the fee
- the filing fee prescribed for NCLT applications under the rules, which is payable to the tribunal;
- newspaper publication and service charges, where publication or substituted service is directed;
- the resolution professional's fee, which is met from the corporate debtor's estate if the matter is admitted, not by the applicant;
- the fee of counsel engaged for an appeal to the National Company Law Appellate Tribunal;
- valuation, forensic audit or transaction-review reports;
- courier, printing of the paperbook, and travel outside Kolkata.
Where the application is for financial debt, the record typically runs to hundreds of pages of statements and sanction letters, and copying and compilation are real costs that sit outside the professional fee.
What drives the cost up or down
- Whether the debt is disputed. A clear admitted default is a shorter hearing. A disputed claim invites a long admission contest.
- Whether the corporate debtor contests. A defended application goes through more hearings and written submissions.
- Whether the matter proceeds into resolution. Beyond admission the work changes shape, and the applicant's role becomes a watching brief with its own cost.
- How many creditors intervene. Where several creditors appear, the hearings multiply.
- The state of the accounts. A clean ledger with invoices and payment records is cheaper to put before the tribunal than a running account that must be reconstructed.
Because the tribunal's list is heavy, the number of hearings usually decides the total more than the number of documents does. A short, well-annexed application is cheaper to run than one that has to be rebuilt after the first hearing.
Questions to ask before you engage an advocate
- On these accounts, is this a financial creditor application or an operational creditor application?
- Is there any pre-existing dispute that could defeat the application?
- What is the minimum default threshold, and does my claim clear it?
- What is the filing fee, and is it separate from your fee?
- What happens to your role and my cost if the application is admitted?
- Is a settlement or a recovery suit a better route than an application to the tribunal?
- If I lose at admission, what does an appeal involve and cost?
Our published fees
We price after reading the ledger, the invoices and any demand notice, because those decide whether the application is a short one or a contest. Our published consultation and appearance fees are set out on our pricing page, and our insolvency and bankruptcy service explains the stages. To have a claim assessed, contact us.
Can I recover my legal fees from the debtor?
Costs before the tribunal are discretionary, and an order for costs is not the same as your actual fees. Treat any recovery of costs as a possibility rather than something to plan around, and budget for the fees as your own cost of recovery.
Do I have to send a demand notice first?
An operational creditor must serve a demand notice and allow the prescribed period to pass before filing under section 9. A financial creditor does not follow that route and files directly under section 7. Which route applies to you is decided by the nature of the debt, not by your preference.
What is the minimum amount for an insolvency application?
The Code sets a minimum default amount, and it is notified by the government. Because it is a statutory threshold that can change, it should be confirmed against the notification in force on the date of filing before any application is prepared.
Does an NCLT application stop the debtor from transferring assets?
An interim moratorium and the consequences of admission are matters of law that depend on the stage reached. What can and cannot be done after admission should be explained to you in your own case, because the answer turns on the stage and on the orders passed.