Evolution Of Law Of Corporate Insolvency "A Balance Sheet Of Working Of IBC 2016" [Part-I]

This Article traces implementation of IBC and progress achieved over the past one year and the challenges faced by each of the of the Pillars during their one year of journey.For the sake of convenience and better understanding, the article is divided into four parts.Part-I Captures Criticality of IBC as a piece of legislation and challenges & achievements of IBBI.Part-II - Traces Formation of NCLTs and evolution of insolvency jurisprudence,Part-III- Deals with the role of two other critical...

SC Bars HC From Hearing The Constitutional Validity Of Insolvency and Bankruptcy Code /NCLT

Supreme Court of India on Thursday directed Gujarat High Court not to enter into the debate pertaining to the validity of the Insolvency and Bankruptcy Code, 2016 or the constitutional validity of the National Company Law Tribunal.The Bench of Chief Justice Dipak Misra and Justices AM Khanwilkar and DY Chandrachud was hearing a petition regarding a pending matter in the Gujarat High Court...

Absenteeism In Voting – An Oxymoron

This note deals with the question whether, in determination of the assent at a Committee of Creditors in resolution proceedings, the votes of such creditors who (a) do not vote at all, at an electronic voting; or (b) abstain from voting at the meeting itself [collectively referred to as "abstaining creditors"] will be considered while computing the voting strength of 75% required.The relevant provision of law for this purpose is sec. 21 (8) of the Code which provides as follows:(8) All decisions...

IBBI Issues Circular On Fee Payable To Insolvency Professionals [Read Circular]

The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular clarifying the norms for payment of fees to insolvency professionals as well as other professionals who are appointed by such insolvency professionals.The Code of Conduct for Insolvency Professionals under the IBBI (Insolvency Professionals) Regulations, 2016 require an insolvency professional to provide services...

Corporate Insolvency Resolution Process Under Insolvency And Bankruptcy Code And The Dilemma Surrounding Guarantee

India is on the cusp of a major shift in its recovery, insolvency, and bankruptcy jurisprudence post introduction of Insolvency and Bankruptcy Code 2016 (hereafter, the "Code"). Several well established concepts are being challenged and at the same time, new concepts are being evolved. For instance, it is a well-known principle of law that every dispute should be contested within the limitation period prescribed under the Limitation Act 1963. However, in Neelkanth Township and Construction Pvt....

Suspecting Prima Facie Case Of Collusion Between Promoters & Petitioners, SC Stays Insolvency Proceedings At NCLT, Mumbai [Read Order]

The Supreme Court recently stayed proceedings in a matter at the National Company Law Tribunal's Mumbai bench observing that there seems to be a prima facie case of a collusive effort between the promoters and the petitioners.The division bench of Justice Rohinton F Nariman and Justice Navin Sinha made the observation while hearing a civil appeal filed by investors of a collective...

SC Stays NCLAT Order That Said Limitation Act Doesn't Apply To Proceedings Under IBC [Read Petition]

The Supreme Court on Wednesday stayed the order of the National Company Law Appellate Tribunal which said the provisions of the Limitation Act were not applicable for initiation of Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC).A bench of Justices Rohinton Fali Nariman and Navin Sinha stayed the November 7, 2017 order of NCLAT and issued notices on...

The Insolvency And Bankruptcy Amendment Bill, 2017: What Has Changed?

On November 23, 2017, President Ram Nath Kovind had given assent to the Insolvency and Bankruptcy Code Amendment Ordinance, 2017, making major amendments to the Insolvency and Bankruptcy Code. The aim of the Ordinance was to prevent certain parties from bidding for companies as resolution applicants due to their questionable antecedents. This was done to protect the credibility of the processes under the Code by disallowing backdoor entry of entrenched managements and preventing wilful...

Disputing "Dispute" Under IBC

Recent order of NCLT at Hyderabad in the matter of K Sashidhar, MD of Kamineni Steel & Power India Private Limited vs Kamieneni Steel & Power India Ltd[1] passed on November 27, 2017 has thrown open lots of questions which all the stake holders would need to address in time.Kamineni Steel & Power India Private Limited is a Private incorporated on 20 October 2008. In connection with its project to set up a manufacturing facility for production of steel billets at Sreepuram, Nalggonda...

Information Utilities 101 And A Primer On Compliance With RBI's Dec. 19, 2017 Notification On Information Utilities

The Reserve Bank of India on December 19, 2017, issued a notification directing all financial creditors to submit financial information and information relating to assets in relation to which any security interest has been created to the National E-Governance Services Ltd (NeSL), which is India's first registered information utility (IU). This article aims to address the fundamental concepts...

Insolvency And Bankruptcy Code & Ordinance Challenged Before Gujarat HC; Notice Issued

The Gujarat High Court has issued notice on a Petition challenging the constitutional validity of the Insolvency and Bankruptcy Code, 2016 and the recent ordinance barring Promoters from submitting a resolution plan.The notice returnable on 22 January, 2018 was issued by a Bench comprising Chief Justice R. Subhash Reddy and Justice Vipul M. Pancholi on a Petition filed by Accord...

Information With Information Utilities Under IBC-How It Works

"Creditor has the incentive to close out its investment quickly so as to avail of alternative investment opportunities. The debtor on the other hand has the incentive to hold on to the assets" [1]Gathering and Preservation of information is a challenge especially when there are conflicting forces, each trying to present it in a manner to suit their own interest. Banks have been facing this challenge in recovering their dues while courts applied the strict regimes under Indian Evidence Act,...