Public Opinion Invited On Draft IBBI Regulations, 2018

The Insolvency and Bankruptcy Board of India (IBBI) has invited comments from the public, including the stakeholders and the regulated, on the draft Insolvency and Bankruptcy Board of India (Mechanism for Issuing Regulations), Regulations, 2018 which is available at www.ibbi.gov.in. A cost-benefit analysis of the draft regulations is appended at the end of the draft regulations.Section 240 of...

Moratorium To Guarantor's Assets vis-à-vis Interests Of The Secured Creditors

A question that is repeatedly arising after the enactment of Insolvency and Bankruptcy Code (IBC) is as to whether the security of guarantee (Personal or Corporate) is no longer a preferred security or convenient security for the secured creditors? The latest judgement of the Honourable National Company Law Appellate Tribunal (NCLAT) in the case of State Bank of India Vs V Ramakrishnan and Veesons Energy Limited[1] (28th February Order) is a direct contradiction of its own orders in the earlier...

Evolution Of Law Of Corporate Insolvency [Part- IV] Dimension Of Role Of Resolution Professionals– Final Balance Sheet Of Progress

IRPs/RPs/Liquidators form the fifth pillar of the ecosystem under IBC. Unlike the previous regime under Companies Act, they are professionals with expertise in accounting/law/Secretarial practice/ relevant experience in the field. Criticality of their role can be gauged from the fact that on admission of application by NCLT, IRP assume power of managing the affairs of the debtor. After formation of creditor committee role of RP gets widened as RP has to co-ordinate a meeting of CoC and...

Ineligibility Criteria U/S 29A Of IBC: A Net Too Wide !

Resolution plan is designated to be the "way-out" for insolvent entities coming under the Insolvency and Bankruptcy Code, 2016. The resolution professional appointed by the adjudicating authority constitutes a committee of creditors, invites resolution plans from prospective resolution applicants, and places the resolution plans before the committee of creditors. The resolution plan which is approved by the committee of creditors is submitted to the adjudicating authority for sanction. A...

Evolution Of Law Of Corporate Insolvency [Part- III] Role Of Information Utilities & Issues Before Creditors Committee

Technology is the king in modern times. Things which were considered unimaginable are happening in split of seconds. Disruptive technologies are challenging the way we think, visualize and implement the things. Digital printing, blockchain technology, artificial intelligence, APIs are the things that will rule in the years to come and legal system cannot afford to remain aloof to such changes. The need and requirement of new generation, business, law, transactions cannot be met if we continue...

Evolution Of Law Of Corporate Insolvency [PART -II] Formation Of NCLTs And Evolution Of  Insolvency Jurisprudence

Law Commission of India vide its 124th Report[1], while highlighting the issues of multiplicity of jurisdictions with High Courts, pendency of cases, multiplicity of stages of appeal/ review/ revision under the Code of Civil Procedure, and need of having specialized bodies to deal with specialized matters, recommended for setting up of specialized Tribunals. This paved way of setting of various Tribunals.NCLTs were set up under section 408 of the Companies Act, 2013 w.e.f. 01st June 2016....

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...