What is a compromise arrangement?

A compromise arrangement under Section 230 is an agreement between a company and its creditors or members to restructure debts or obligations. It requires NCLT sanction to be binding on all parties.

How is this different from IBC proceedings?

Section 230 compromise arrangements are initiated by the company and require NCLT sanction. IBC proceedings are initiated by creditors for insolvency resolution and are governed by the Insolvency and Bankruptcy Code 2016.

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Compromise Arrangements

Compromise and arrangement schemes between a company and its creditors or members under Section 230 of the Companies Act 2013, including debt restructuring.

Starting from

₹59,999

Exclusive of GST

State pricing

20 days

Estimated delivery

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10,000+ Clients

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What's Included

Compromise Scheme Drafting

Creditor/Member Meetings

NCLT Petition

NCLT Sanction Order

Implementation Support

How It Works

Scheme Drafting

Draft compromise or arrangement scheme under Section 230 covering terms of compromise with creditors or members.

NCLT Application

File application with NCLT for directions to convene meetings of creditors and/or members.

Meeting Convening

Convene meetings as directed by NCLT. Scheme requires approval by majority in number representing 3/4th in value.

NCLT Sanction

File petition for NCLT sanction after meeting approvals. NCLT examines fairness of the scheme.

Implementation

On NCLT sanction, file certified copy with ROC and implement the compromise arrangement.

Documents Required

Compromise scheme documentRequired

Audited financial statementsRequired

List of creditors with amounts and security detailsRequired

Frequently Asked Questions

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