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...

President Promulgates Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018; Home-buyers Recognized As Financial Creditors [Read Notification]

Homebuyers will now be recognized as financial creditors, with the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 on Wednesday.The recognition would give them due representation in the Committee of Creditors, and would also enable them to initiate corporate insolvency resolution process under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016...

Bad Is Turning Good- From SICA To IBC-The Journey Of Bad Loans In India

India's bad account market is turning good. Investors are upbeat and banks are also looking for alliances to start funds. Huge amount of money from global and domestic capital market is being pumped-in in stressed assets market in India. Big assets undergoing Corporate Insolvency Restructuring Process (CIRP) under Insolvency and Bankruptcy Code, 2016 (IBC) are hot targets. Funds are hoping for big in next round of big tickets cases which might end up before National Company Law Tribunal...

NCLT Kolkata Rejects Resolution Plan Of Dalmia Group For Binani Cement

In a significant order in the highly-contested insolvency proceedings between Dalmia Group, and Binani Industries and Ultra Tech for the resolution of Binani Cement, the NCLT Calcutta on Wednesday directed the Committee of Creditors (CoC) to consider the revised offer from Ultra Tech within 3 days. Earlier, Live Law had reported about the case here.The significant directions are:...

SC Orders Deletion Of Adverse Remarks Made By NCLAT Against Resolution Professional

The Supreme Court has directed deletion of adverse remarks made against a Resolution Professional (RP) registered with the Insolvency and Bankruptcy Board of India by the National Company Law Appellate Tribunal (NCLAT) questioning his competence without any reasons and despite the Committee of Creditors (CoC) voting in favour of his appointment as the liquidator for the liquidation of...

Arbitration Award Directing Transmission Of Shares Can Be 'Enforced' Through NCLT: SC [Read Judgment]

The award postulates a transmission of shares to the claimant. The directions contained in the award can be enforced only by moving the tribunal for rectification in the manner contemplated by law, the bench observed.A three-judge bench of the Supreme Court headed by Chief Justice of India Dipak Misra, in Cheran Properties Limited Vs. Kasturi And Sons Limited, has upheld proceedings...

Insolvency Litigation, High Stakes, Big Battles, Hair Cuts and Head Cuts

The Insolvency and Bankruptcy Code is slowly evolving and coming of age through hundreds of petitions being instituted in various Benches of the National Company Law Tribunal (NCLT). When the stakes involved are of thousands of crores of rupees, the competition among stakeholders becomes intense; few crores get spend on lawyers' fees, every single day.The high-stake litigants are almost airlifting Senior Counsel of the Supreme Court in chartered flights and choppers to reach different Benches of...