MCA Constitutes Insolvency Law Committee, Invites Suggestions from Stakeholders

The Insolvency Section, Ministry of Corporate Affairs, in a notice dated 12th December 2017, has announced the constitution of the Insolvency Law Committee. The Committee shall be chaired by the Secretary, Ministry of Corporate Affairs, as per a notification dated 16th November 2017.The Committee has been constituted to take stock of the functioning and the implementation of the Insolvency...

Breaking: IBC-Lawyer Can Issue Demand Notice Of Unpaid Operational Debt On Behalf Of Operational Creditor: SC [Read Judgment]

Also holds Section 9(3)(c) of the Insolvency and Bankruptcy Code is not mandatory for initiating insolvency proceedings.Answering two important issues of the Insolvency and Bankruptcy Code, the Supreme Court, in Macquarie Bank Limited vs Shilpi Cable Technologies Ltd, has held that a lawyer on behalf of the operational creditor can issue a demand notice of an unpaid operational debt. The...

SC stays NCLT Order Allowing Centre To Take Over Unitech Management 

Attorney General K. K. Venugopal admitted that the Ministry of Corporate Affairs had committed an error in filing a petition before the NCLT.The Supreme Court bench of Chief Justice Dipak Misra, Justice D. Y. Chandrachud and Justice A. M. Khanwilkar on Wednesday granted stay on the interim order dated December 8 of the NCLT, suspending 8 directors of Unitech Ltd., further restraining them...

Insolvency and Bankruptcy Code- Background And The Road Ahead

As the Indian economy attempted to move from an agrarian economy and adopted economic plan to foster industrialization, major policies of the government, including legislative provisions, were directed to achieve rapid industrialization. With focus on industry and to provide basic legislative support for the development and regulation of industries, the Industries (Development and Regulation) Act was enacted in 1951. Formation and liquidation of business entities continued to be governed by the...

SC To Hear Tomorrow Unitech's Grievance Against NCLT Order Suspending 8 Directors

On Monday, the Supreme Court bench of Chief Justice Dipak Misra, Justice DY Chandrachud and Justice AM Khanwilkar agreed to hear on Tuesday the plea on behalf of civil construction and housing development giant Unitech against the interim order dated December 8 of the NCLT, suspending 8 directors of the company and directing the Centre to nominating 10 directors to the Board of Directors of...

Madras HC Puts Interim Stay On NCLT Order Telling Advocates To Wear Gowns Before NCLT Benches [Read Order]

The Madras High Court has stayed for now the operation of the order issued by the Registrar of the National Company Law Tribunal (NCLT) which made it mandatory for advocates to wear gowns while appearing before any bench of NCLT.A bench of Justice TS Sivagnanam and Justice K Ravichandrabaabu placed the November 14 order issued by NCLT Registrar under interim stay while holding that the...

Writing Of Debt And Debt Restructuring: Another Conundrum With The Ordinance Amendment To The Insolvency Bankruptcy Code

Economic development needs an evolved legal system that can support and complement it. The need for refined corporate case resolution with the rise in complexity of investments and global market integration was one of the intentions of a consolidated comprehensive law on corporate insolvencies and bankruptcies in India. This took the shape of the Insolvency and Bankruptcy Code, 2016 (IBC). Now, it is critical to note that the IBC was championed as a legislation which would also look at the debt...

Procedural Deficiencies for Insolvency Offences

Insolvency and Bankruptcy Code, 2016 has created several special offences. It has provided for trial of these offences by special mechanism. Section-236 reads as under:"236. Trial of offences by Special Court.- (1) Notwithstanding anything in the Code of Criminal Procedure, 1973 (2 of 1974), offences under this Code shall be tried by the Special Court established under Chapter XXVIII of the Companies Act, 2013 (18 of 2013).(2) No Court shall take cognizance of any offence punishable under...

Union Cabinet Approves Ordinance To Amend Insolvency And Bankruptcy Code

The Union Cabinet, on Wednesday, reportedly approved an Ordinance to amend the Insolvency and Bankruptcy Code, 2016 (IBC).The changes are expected to address concerns regarding ability of willful defaulters to bid for stressed assets under the present regime. Currently, the IBC does not specify the kind of buyers who can bid for stressed assets of companies that are undergoing...

Deposit 275Cr By Dec 31,Do Not Alienate Property: SC To Jaypee Directors [Read Order]

The Supreme Court bench of Chief Justice Dipak Misra, Justice DY. Chandrachud and Justice AM Khanwilkar on Wednesday issued injunction restraining the 13 directors of Jaiprakash Associates Ltd. (JAL), the parent company of the debt-ridden Jaypee Infratech Ltd (JIL), from transferring, alienating or otherwise dealing with, or disposing of, any property and assets belonging to them without...

IBBI Amends Regulations Governing Corporate Insolvency Resolution Process

On 07 November 2017, the Insolvency and Bankruptcy Board of India (IBBI) amended: (A) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) and (B) The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 (Fast Track CIRP Regulations), issued under the Insolvency and Bankruptcy Code, 2016 (Code). The stated objective of the amendments is to...

Deposit "Substantial Amount" To Prove Bonafide : SC To Jaypee

Real estate giants Jaypee Associates suffered a setback today when the Supreme Court refused to allow it to deposit to Rs 400 crore with its registry as against Rs 2,000 crore directed by it earlier.The company argued :"no company possessed such a huge amount of liquid fund" but the bench headed by Chief Justice Dipak Misra asked it to submit a "substantial amount" to establish its...