Bombay High Court Issues Notice On Plea For Directions To NCLAT For Enabling E-Filing & Doing Away With Physical Filing

The Bombay High Court on Monday issued notice to the National Company Law Appellate Tribunal (NCLAT) and the Ministry of Corporate Affairs on a petition filed by an Advocate seeking directions for doing away with physical filing of proceedings and enabling e-filing before NCLAT instead, so that lawyers outside Delhi are not disadvantaged.Division bench of Justice AA Sayed and Justice...

NCLT Allows Reduction Of Paid Up Share Capital Structure Of Josco Jewellers Pvt. Ltd. From Rs. 120 Crores To 1 Crore At Its Request

The National Company Law Tribunal, Kochi Bench allowed a company petition filed by Josco Jewellers Pvt. Ltd. for reduction of its share capital from Rs. 120 crores to Rs. 1 crore after an agreement was entered into by the petitioner company for selling and transferring business to one of its flagship companies, Josco Bullion Traders Pvt. Ltd. The decision came in the wake of...

Suspension Of Insolvency Proceedings And Its Effect On Bilateral Investment Treaties

Recently, the Government extended suspension of insolvency proceedings till 31st March, 2021. On 24th September, 2020, Rajya Sabha passed The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 by way of which it extended the suspension of Sections 7, 9 & 10 with a view to provide further relaxation period to companies adversely affected by COVID-19. The same was originally introduced by the government during March suspending the initiation of Corporate Insolvency Resolution...

Is Financier With Hypothecation Charge Over Vehicle A 'Financial Creditor' Under IBC? Supreme Court To Examine

The Supreme Court on Thursday issued notice on an appeal filed against an NCLAT verdict which held that a financier cannot claim the status of 'financial creditor' under the Insolvency and Bankruptcy Code (IBC) if the hypothecation charge in respect of a vehicle is not registered as per the Companies Act, 2013.A bench comprising Justices DY Chandrachud, Indira Banerjee and Sanjiv Khanna...

Centre Extends Suspension Of Insolvency Proceedings By Another 3 Months Till March 25, 2021 - Read Notification

The Ministry of Corporate Affairs on Tuesday(December 22) issued a notification to extend the suspension of insolvency proceedings by another three months with effect from December 25 till March 25, 2021.The new notification comes ahead of the end of the present suspension period which is set to end on December 25.In June, the Centre had suspended IBC proceedings for a period of six months...

Kerala High Court Stays NCLT Order Which Held That March 24 Notification Raising IBC Threshold As Rs One Crore Will Apply Only Prospectively

The Kerala High Court on Friday stayed the order of the National Company Law Tribunal (NCLT) Kochi bench which held that the March 24 notification raising the threshold limit for insolvency proceedings as Rupees One Crore will apply only prospectively.In the case M/s Tharakan Web Innovations Pvt Ltd vs Cyriac Njavally, the NCLT held that the March 24 Notification which enhanced the...

Section 10A Of IBC- Is It Equitable?

On 5th June 2020 , the Ministry of Law and Justice through an Ordinance inserted Section 10A to the Insolvency and Bankruptcy Code, 2016 ("IBC"), suspending the initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7, 9 and 10 of the IBC for a period of six (6) months, w.e.f. 25th March, 2020. Subsequently, repacing the Ordinance, the Parliament on 21st September 2020 , passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020. Days before the...

Limitation Under IBC – A Tale Of Two Judgments?

"…It was the best of times, it was the worst of times…." (Charles Dickens, a Tale of Two Cities, 1859) The Insolvency & Bankruptcy Code (IBC) was projected and portrayed as a mirage and a revolution in the law governing reorganisation and liquidation. Embodied as a self-sufficient code on the issue, the Act underwent fine-tuning by way of a plethora of amendments to plug loopholes of functionality, practical application as well as procedure. One such integral issue of...

[Explainer] Resolution Plan Under IBC: Major Decisions

"The 'I&B Code' defines 'Resolution Plan' as a plan for insolvency resolution of the 'Corporate Debtor' as a going concern. It does not spell out the shape, colour and texture of 'Resolution Plan', which is left to imagination of stakeholders. Read with long title of the 'I&B Code', functionally, the 'Resolution Plan' must resolve insolvency (rescue a failing, but viable...

SC To Continue Hearing Challenge Against IBC Ordinance 2020 On 8th October [Read Order]

The Supreme Court on Tuesday heard arguments on behalf of the Petitioners in a batch of petitions challenging the constitutional validity of conditions introduced by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020, on the homebuyers' right to file insolvency petitions against defaulting bidders. A Bench headed by Justice RF Nariman heard arguments submitted by...

An Analysis Of Recent Judgments On Limitation Under IBC

Prior to the enactment of IBC (Second Amendment) Act, 2018 through which Sec. 238A of the Code was introduced, in a series of judgments, [1] the NCLAT and NCLT considered claims which were otherwise barred by limitation for the purpose of initiating of CIRP under Sections 7 and 9 of the Code. The Supreme Court, in B.K. Educational Services Private Limited v Parag Gupta and Associates,[2] held that S. 238A, being clarificatory and procedural in nature, would be applicable to claims made ...

Personal Guarantor Insolvency Provisions Of IBC Under Challenge

By a gazette notification dated 15 November 2019, the Government of India had brought into effect Part III of the Insolvency and Bankruptcy Code, 2016 (IBC) (save and except provisions dealing with the fresh start process mainly set out in Chapter III) dealing with the insolvency and bankruptcy of individuals and partnership firms in so far as it is applicable to personal guarantors of a corporate debtor. We have recently seen a lot of discussion surrounding these provisions in several...