Treating Homebuyers As Financial Creditors Not Arbitrary : SC Upholds 2018 IBC Amendment [Read Judgment]

Dismissing a bunch of petitions filed by nearly 200 realtors, the Supreme Court on Friday upheld the amendments made to the Insolvency and Bankruptcy Code in 2018 to treat homebuyers as financial creditors.In the judgment titled Pioneer Urban Land and Infrastructure Ltd and Anr vs Union of India, the bench of Justices R F Nariman, Sanjiv Khanna and Surya Kant held that the amendments do...

Names Of Resolution Professionals Facing Disciplinary Proceedings Can't Be Made Public : IBBI Appellate Authority [Read Order]

The First Appellate Authority (FAA) of the Insolvency and Bankruptcy Board of India has held against disclosure of names of insolvency professionals (IPs) facing disciplinary proceedings saying the same would impede the investigation process due to unwarranted public attention and is likely to harm practice of most IPs who are established professionals like Chartered Accountants. The FAA...

Call For Paper: CARIP NLUJAA Journal On Intellectual Property Rights [Vol 2019-20, Issue 1]

Centre for Advanced Research on Intellectual Property Rights, National Law University and Judicial Academy Assam, hereby invites articles/research papers, case studies, and book reviews on the contemporary topics of Intellectual Property Rights for publication in the 1st Issue of the CARIP- NLUJAA Journal on Intellectual Property Rights for its 2019-2020 volume. The Journal on Intellectual Property Rights is a peer-reviewed ISSN serial journal published by the Centre for Advanced Research on...

Essar Insolvency : SC Orders Status Quo On NCLAT Verdict

The Supreme Court on Monday ordered status quo as of today with respect to the order of National Company Law Appellate Tribunal in the Essar insolvency case.The bench of Justices R F Nariman and Surya Kant was hearing a bunch of appeals filed by the Committee of Creditors and several banks challenging the July 4 order of the NCLAT which had approved ArcelorMittal's Rs 42,000 crore bid for...

Disciplinary Proceedings Initiated By IBBI Can't Be Quashed By NCLT, Rules NCLAT [Read Order]

National Company Law Appellate Tribunal has held in the case of IBBI v. Rishi Prakash Vats & Ors. that once a disciplinary proceeding is initiated by the Insolvency and Bankruptcy Board of India (IBBI) on the basis of evidence on record, it is for the Disciplinary Authority, i.e., IBBI to close the proceeding or pass appropriate orders in accordance with law. Such power having been...

NCLAT Approves Resolution Plan Of ArcelorMittal With Certain Modifications

The National Company Law Appellate Tribunal has modified and approved the Resolution Plan of ArcelorMittal India Private Limited in the Corporate Insolvency Resolution Process of Essar Steel India Limited. Previously, the NCLT, Ahmedabad had approved the Resolution Plan of ArcelorMittal as approved by the Committee of Creditors of Essar Steel India Limited. Standard Chartered Bank, Prashant Ruia and certain banks among various other appellants had approached the NCLAT seeking various...

NBFCs Are Outside The Purview Of Insolvency & Bankruptcy Code: NCLAT [Read Judgment]

National Company Law Appellate Tribunal has held that Non-Banking Financial Corporation do not fall under the purview of Insolvency & Bankruptcy Code. It was noted that the respondent is a non-banking financial institution and is carrying on business of a financial institution and thereby it being financial service provider, it does not come within the meaning of...

Liquidator Cannot Deal With Properties Attached As 'Proceeds Of A Crime' Under PMLA: NCLAT [Read Judgment]

National Company Law Appellate Tribunal (NCLAT) has held that section 14 of Insolvency and Bankruptcy Code does not apply to properties attached as proceeds of crime under the Prevention of Money Laundering Act. In the present case, the Bank of Baroda had initiated 'Corporate Insolvency Resolution Process' against 'Rotomac Global Private Limited' (Corporate Debtor) which was followed by...

Prudential Framework for Resolution of Stressed Assets, 2019: The Winds of Change in Banking Sector

The last few months have seen a wave of reforms and implementation of new policies in the Indian banking system. One major cause for staggering banking sector is increasing Non-Performing Assets (NPAs). Evaluating bad loans of 39 listed banks in absolute term, it reached 92% in fiscal year of 2016 which was almost Rs. 5.79 trillion. In the backdrop of rising NPAs, the Reserve Bank of India came up with a circular which provided option to stressed companies to resolve NPAs. The first of...

Impact Of Insolvency And Bankruptcy Code 2016 On Indian Industries

The growing world trend and rapid globalisation have led to fast tracking of disposing off the cases related to insolvency, bankruptcy, liquidation etc. It's imperative to study and critically examine how the inception of IBC took place and to also get into the nitty gritty of the said enactment. Many jurists and lawyers are of the opinion that it was about time that something like IBC came into action and it was the need of the hour. But first things first, what is Bankruptcy, Insolvency and...

Foreign Court Order Cannot Withhold Insolvency Process; NCLT Admits SBI's Resolution Application Against Jet Airways [Read Order]

The National Company Law Tribunal Mumbai bench on Thursday admitted the insolvency petition filed by State Bank of India against grounded airlines company Jet Airways.The top public sector bank of India filed the application under Section 7 of the Insolvency and Bankruptcy Code stating that the airlines had defaulted payment of nearly Rs. 469 crores.Admitting the plea against Jet Airways,...

Debarment of The Defaulting Resolution Applicants: A Need of The Hour

The Insolvency and Bankruptcy Code, 2016 ("Code") and the regulations made thereunder have witnessed several amendments and litigations since the date of notification of the Code. It is an admitted fact that many corporate debtors have seen resolution under the Code, yet there are number of cases which have gone into liquidation due to varied reasons. The courts and tribunals in India have been working tirelessly to implement the spirit of the Code, that is, to promote resolution of...