Insolvency Process Can't Be Admitted During Pendency Of Proceedings Challenging Arbitral Award: SC [Read Judgment]

'We repeat that the object of the Code, at least insofar as operational creditors are concerned, is to put the insolvency process against a corporate debtor only in clear cases where a real dispute between the parties as to the debt owed does not exist.'The Supreme Court has held that an insolvency process cannot be put into operation when there is a pending proceeding challenging against...

Insolvency And Bankruptcy Code (IBC) Will Override Provisions Of Other Enactments Inconsistent With It : SC [Read Order]

"Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income Tax Act."Upholding a Delhi High Court judgment which held that moratorium under the Insolvency and Bankruptcy Code (IBC) will apply to the order of Income Tax Appellate Tribunal, the Supreme Court has observed...

Insolvency And Bankruptcy Code: Section 14 Moratorium Would Not Apply To A Personal Guarantor Of A Corporate Debtor: SC [Read Judgment]

'Section 14 refers only to debts due by corporate debtors, who are limited liability companies, and it is clear that in the vast majority of cases, personal guarantees are given by Directors who are in management of the companies. The object of the Code is not to allow such guarantors to escape from an independent and coextensive liability to pay off the entire outstanding debt, which is...

Monsoon Session Of Parliament: Highlights

The Monsoon Session of the Parliament from July 18 to August 10 witnessed a lot of action, with several bills getting passed. The highlights of key legislative actions during the Monsoon session are given below:Specific performance of contract to be the norm : Amendment to Specific Relief ActThe Parliament passed the Specific Relief (Amendment) Bill 2018, proposing to bring significant...

IBC: Application For Initiating Corporate Insolvency Resolution Process Filed By Advocate Of Financial Creditor Maintainable: SC [Read Order]

We also think that the petition filed by an advocate would be maintainable, as has been held in Macquarie Bank supra.The Supreme court observed that an application filed by an advocate would be maintainable under Section 7(3)(a) of the Insolvency And Bankruptcy Code, 2016.This observation was made by the bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra in SUNRISE 14 A/S...

Suspended Director Of Corporate Debtor Not Entitled To Confidential Info In Possession Of CoC Or RP: NCLT [Read Order]

It says if the information is confidential, the CoC could keep it to itself to maximise the valuation of assets.Is a suspended director of a corporate debtor entitled to confidential information in possession of the Resolution Professional (RP) and the Committee of Creditors (CoC)?The Mumbai bench of National Company Law Tribunal (NCLT) has answered the question in negative while concluding...

Homebuyer Who Subrogated All Rights In Favour Of Bank Cannot Be Treated As Financial Creditor Under IBC, Says NCLT Allahabad [Read Order]

The Allahabad bench of National Company Law Tribunal has held that a homebuyer who subrogated all his rights in favour of the bank at the time of taking loan cannot be treated as a financial creditor under the Insolvency and Bankruptcy Code, 2016. A bench of Saroj Rajware and V P Singh said the petition filed by the homebuyer for initiating Corporate Insolvency Resolution Process is...

Insolvency Code Amendment Passed By Lok Sabha Treats Home Buyers As Financial Creditors [Read Bill]

The Lok Sabha has passed the Insolvency and Bankruptcy Code (Second Amendment Bill) 2018. One of the significant features of the Bill is that it recognizes home buyers, who have invested money in real estate projects for allotment of residential flats, as financial creditors. This is sought to be done by expanding the definition of 'financial debt' as given in Section 5(8) of the Code....

NCLT Bench Constituted At Kochi

A bench of National Company Law Tribunal has been constituted at Kochi, as per a central government notification. The notification issued by Ministry of Corporate Affairs in exercise of powers conferred under Section 419(1) of the Companies Act 2013, amended an earlier notification dated 01.06.2016, and set up Kochi bench for the State of Kerala and Union territory of...

Surana & Surana & UPES' National Insolvency Law Moot [28th–30th Sept]

UPES School of Law has announced its first edition of Surana&Surana and UPES School of Law National Insolvency Law Moot Court Competition, 2018, in association with its joint organizer, Surana&Surana International Attorneys, Chennai.Dates: September 28, 2018, to September 30, 2018.Registration: There is a cap on the participation of 24 teams on the first-come-first-serve basis who shall participate in this competition.Registration Fee: Rs. 5,000Important Dates: Commencement of...

NLU Delhi's Insolvency & Bankruptcy Moot Competition [Nov 15-17, 2018]

The National Law University (NLU), Delhi, supported by the Insolvency and Bankruptcy Board of India (IBBI) and the UNCITRAL RCAP, in collaboration with INSOL India and Society of Insolvency Practitioners of India (SIPI), has initiated a moot competition on insolvency and bankruptcy. The Moot is organized by the Centre for Transnational Commercial Law (CTCL). The inaugural edition of the competition was held on 28-29 October 2017 at the National Law University, Delhi, India.The theme of 2018...

Homebuyers Triggering IBC – Mischief Managed?

Amidst the debate on homebuyers' claims in insolvency disputes, the Ministry of Corporate Affairs formed the Insolvency Law Committee ("ILC") which rendered its report in March 2018. Amongst other agendas, ILC focused on resolving the significant confusion regarding the status of homebuyers of under-construction apartments as creditors under the Insolvency and Bankruptcy Code, 2016 ("IBC"). Resultantly, moving forward with the ILC report, the President approved the Insolvency & Bankruptcy...