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NCLT & Insolvency

NCLT Lawyer in Bengaluru

NCLT help for Bengaluru founders, investors, vendors and lenders: founder disputes, ESOP and dilution cases, creditor petitions. Associate office.

Advice and representation before the NCLT and NCLAT for creditors, companies, promoters, shareholders and homebuyers, led by Advocate BK Singh.

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Last reviewed: October 2026

Bengaluru's corporate world is shaped by its start-ups and technology companies. Founders, early employees holding stock options, angel investors, venture funds, IT vendors and landlords of office space all have stakes in companies that grow fast and sometimes fail fast. When relationships break down or money stops flowing, the NCLT is often where the dispute is decided, whether it is about who controls the board, whether a down round was fair, or whether a vendor can push an unpaying client into insolvency.

We serve Bengaluru clients through an associate office in the city, with our Delhi NCR team preparing papers and strategy. This page explains what we do for clients in Bengaluru, the questions they bring most often, and how a matter runs. For the bench itself, see our page on NCLT Bengaluru.

Our presenceAssociate office in Bengaluru
BenchNCLT Bengaluru, Raheja Towers, M.G. Road
AppealsNCLAT Chennai
Common clientsFounders, early employees with ESOPs, investors, IT vendors, landlords

हिंदी में सारांश

बेंगलुरु के फाउंडर, निवेशक, ESOP रखने वाले कर्मचारी, IT वेंडर और मकान मालिकों के NCLT मामले NCLT बेंगलुरु, रहेजा टावर्स, एम.जी. रोड में जाते हैं। बेंगलुरु में हमारा सहयोगी ऑफिस है और दिल्ली NCR की टीम कागज़ात और रणनीति तैयार करती है। बेंगलुरु बेंच के आदेशों की अपील NCLAT चेन्नई में होती है।

Check first

Is this your situation?

  • You are a co-founder who has been removed, sidelined or diluted
  • You are an early employee whose stock options were cancelled or bought back cheaply
  • You are an angel investor who was not offered shares in a new round
  • Your IT services firm is owed Rs 1 crore or more by a Bengaluru client
  • You are a landlord owed rent by a company that has left the premises
  • Your start-up has received a demand notice or insolvency petition
  • Your start-up is winding down and you want to close it properly
Our work

What we do for clients in Bengaluru

Employees and angels

Challenges to ESOP cancellations and dilutive allotments where they form part of oppression.

Vendors and landlords

Demand notices and Section 9 petitions.

Start-ups under pressure

Defence, settlement and orderly voluntary liquidation.

Restructuring

Reverse flips and mergers, including fast-track routes.

Appeals

NCLAT appeals, heard by NCLAT Chennai.

Smaller stakeholders

Early employees and angels: where you stand

Early employees and angel investors often hold small stakes, well below the 10% threshold for an oppression petition. The NCLT can waive the threshold under Section 244 in suitable cases, and tribunals have considered factors such as whether the applicant has a real interest in the company and whether the complaint affects shareholders generally. Alternatively, several small shareholders can combine to meet the threshold.

For ESOP holders, the first question is what the scheme and grant letter say about vesting, exercise windows and leaver terms. A cancellation that follows the scheme may be lawful even if it feels unfair. But where options or shares are cancelled or bought back to shift control, or without the approvals the scheme or the Companies Act requires, it may be part of an oppression case. For angels, a new round that excludes them from pre-emptive rights given in the articles can be challenged. We read the documents before advising whether the NCLT, arbitration or negotiation is the better path.

An orderly exit

Winding down a start-up properly

Not every start-up ends in a dispute. Many simply run out of money or purpose. Founders sometimes walk away and let the ROC strike the company off, but that can leave directors exposed for unpaid statutory dues, open tax matters and creditor claims. A company with assets or liabilities to settle should usually go through voluntary liquidation if it is solvent, or consider Section 10 if it is not. A properly documented closure protects founders and makes it easier to raise money for their next venture.

Step by step

How a Bengaluru matter runs with us

1

Share the documents

Articles, shareholders' agreement, ESOP scheme, cap tables, invoices or leases.

2

Review and advice

Our team reviews and advises, with a meeting in Bengaluru or by video.

3

Written fee terms

Options, risks, timeline and fees for each stage, in writing.

4

Filing and interim relief

We e-file before NCLT Bengaluru and, in founder disputes, seek interim relief at the first hearing where needed.

5

Updates and appeals

A note after every hearing. Appeals go to NCLAT Chennai.

Choosing the route

Which forum for which problem in Bengaluru

ProblemUsual forum
Founder removed or dilutedNCLT Bengaluru, Sections 241–242, or arbitration for contractual claims
ESOP cancellationDepends on the scheme: NCLT if part of oppression, otherwise arbitration or civil court
Undisputed vendor debt of Rs 1 crore or moreNCLT Bengaluru, Section 9 after a demand notice
Disputed debt or below Rs 1 croreCommercial court in Bengaluru, after mediation
Unpaid office rentSection 9 if undisputed and above Rs 1 crore; otherwise a suit
Solvent start-up winding downVoluntary liquidation before the NCLT
What to expect

Time and typical cost

Our fees are agreed in writing at the start, stage by stage. They are not linked to the outcome.

StageUsual timeWhat it involves
Review and first adviceWithin 2 to 4 working days of receiving documentsOur fee for the opinion
Founder dispute: urgent filingWithin days where neededOur fee; urgent mentioning
Demand notice (Section 8)2 to 4 days to draft and send; 10 days for replyOur fee
Petition drafting and filing1 to 2 weeks after documents are completeNCLT filing fee; our fee
Voluntary liquidationAbout a year from commencementLiquidator's fee; our fee
Paperwork

What to bring

For founders, employees and angels

  • Articles, shareholders' agreement and side letters
  • ESOP scheme and grant letters
  • Cap table before and after each round
  • Board and shareholder notices and minutes

For vendors and landlords

  • Contracts, invoices, acceptance emails or lease deed

For a wind-down

  • Latest accounts, list of creditors and pending tax matters

Company details

  • Name and CIN of the company involved
Legal basis

Laws that apply

Companies Act Sections 241–244

Oppression and mismanagement, threshold and waiver.

Companies Act Section 62

Further issue of shares, including rights issues and ESOPs.

IBC Section 59

Voluntary liquidation of solvent companies.

Companies Act Section 421

Appeals from NCLT Bengaluru go to NCLAT Chennai.

Our approach

How we work for Bengaluru clients

We are a litigation practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad), and an associate office in Bengaluru. This is what you can expect:

  • Documents read together: articles, agreements and ESOP schemes.
  • Interim relief planned: timing matters in founder disputes.
  • Small stakeholders taken seriously: waiver and group petitions considered.
  • Clean exits: properly documented closures.
  • Written fee terms: agreed stage by stage, never linked to the outcome.
Avoid these

Mistakes Bengaluru clients often make

  • Assuming a small stake rules out an NCLT petition
  • Walking away from a dead start-up without closing it
  • Relying on rights in the shareholders' agreement that are not in the articles
  • Filing a Bengaluru appeal at NCLAT New Delhi
  • Using Section 9 where the client complained about the work before the notice
Illustration

Angels left out of a round

Here's a made-up example. Six angel investors together held 11% of a Bengaluru fintech start-up. The articles gave all shareholders pre-emptive rights on new issues. The board approved a new round offered only to a fund and the founders, at a discount, cutting the angels to 4%.

Together they met the threshold. We filed an oppression petition before NCLT Bengaluru, relying on the pre-emption clause and the absence of any offer to them. The bench directed that the new shares should not be voted pending the hearing. The company then offered the angels participation in the round on the same terms, and the petition was withdrawn.

Illustration

A landlord and a departed tenant

Here's a second made-up example. A Whitefield landlord was owed Rs 1.4 crore in rent and lock-in compensation by a tech company that had moved out early. The company had acknowledged the rent arrears in emails but disputed the lock-in amount.

We advised that the undisputed rent arrears, above Rs 1 crore on their own, could support a Section 9 demand, while the lock-in claim should be pursued separately. A demand notice for the rent arrears brought a settlement within weeks.

Getting paid

IT vendors and services disputes

Bengaluru's IT services firms often work for clients on milestone-based contracts. When a client stops paying, the vendor's strongest evidence is written acceptance: sign-off emails, user acceptance test reports and go-live confirmations. If the client complained about the work before the vendor demanded payment, the complaint will usually defeat a Section 9 petition, even if the vendor considers it baseless. Many IT contracts also contain arbitration clauses, often seated in Bengaluru or abroad. Where acceptance is clear and the amount is at least Rs 1 crore, a demand notice under Section 8 is often the quickest route to payment. Where the work is disputed, arbitration or a commercial suit is usually better.

When the foreign parent comes home

Reverse flips and holding structures

Many Bengaluru start-ups were set up with a holding company in Singapore, Delaware or elsewhere and an Indian operating subsidiary. Those now moving the holding company to India can use an inbound merger of the foreign holding company into its wholly owned Indian subsidiary, which since September 2025 can go through the fast-track route under Section 233, with confirmation by the Regional Director instead of a full NCLT process. Other steps still take time: foreign approvals, tax on foreign shareholders, FDI compliance for foreign investors who will now hold Indian shares, and conversion of ESOPs. See cross-border mergers.

FAQs

Frequently Asked Questions

Do you have an office in Bengaluru?

We have an associate office in Bengaluru, with our main offices in Dwarka (New Delhi) and Vaishali (Ghaziabad).

Can an employee with a small stake file an oppression petition?

The NCLT can waive the 10% threshold in suitable cases, or several shareholders can combine to meet it.

Are ESOP disputes heard by the NCLT?

Sometimes, when the cancellation or allotment is part of oppression. Purely contractual ESOP disputes may go to arbitration or a civil court.

Can unpaid rent be the basis of insolvency?

Rent under a lease can be an operational debt. It must be at least Rs 1 crore and undisputed.

How should a failed start-up be closed?

Through voluntary liquidation if solvent, or other routes with advice, rather than simply walking away.

Where do appeals go?

To NCLAT Chennai.

Can I meet you in Delhi for a Bengaluru matter?

Yes. Our Delhi NCR team can advise, and our associate office files and appears in Bengaluru.

Do you charge a success fee?

No. Fees are agreed in writing for each stage and not linked to the outcome.

NCLT Matter in Bengaluru?

Send us your documents or call us. We will tell you plainly whether the NCLT is the right route and what the first step should be.

This page gives general information about the law as it stood when it was last reviewed. It is not legal advice on your case and does not promise any result. IBC rules and NCLT procedures change often, so outcomes depend on your own documents, dates and facts.

Need help with NCLT Lawyer in Bengaluru?

Send us the notice, the petition or the order. We will tell you where you stand, which bench hears it and the date the next step is due, in plain words.

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