India’s bankruptcy ecosystem needs to be more efficient to develop a market for stressed assets in a post-covid world, chief economic adviser (CEA) to the government Krishnamurthy Subramanian said on Wednesday.
An authorized signatory, Mr. Sanjay Gupta on behalf of M/s. Neesa Infrastructure Limited filed the petition under Section 10 of The Insolvency and Bankruptcy Code, 2016 read with Rule 7 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, as operational creditor/applicant.
The Bench of Justices L Nageswara Rao, Hemant Gupta, and Ajay Rastogi issued a notice in a batch of over 11 transfer petitions filed by IBBI. IBBI was represented by Additional Solicitor General Madhavi Divan with Advocates Vikas Mehta, Apoorv Khator, and Sahil Monga.
The Supreme Court held that an admission made in a counter-affidavit of the Corporate Debtor, in a prior S.7 application, can be relied upon by the creditor in future S.7 applications for the purpose of establishing that a default has occurred. A document filed in the earlier petition that was dismissed as withdrawn can be relied upon by the adjudicating authority in a fresh application.
NCLAT in a case recently held that any objection on net worth certificate provided by Successful Resolution Applicant cannot be raised by the suspended Board of Directors after the Resolution Plan has been approved by the CoC with a huge majority of voting share.
The Appellant is one of the Financial Creditors of the CD from whom the CD had availed various loans including an irrevocable Bank Guarantee. The CD deposited margin money of Rs.40,50,000/- in the form of FDR to secure the said Bank Guarantee. The Bank Guarantee in question was issued in favour of M/s Tata Steel Processing & Distribution Limited.
Lok Sabha passed the Bilateral Netting of Qualified Financial Contracts Bill, 2020, which allows for the enforcement of netting for qualified financial contracts. This bill is passed with the aim to bring financial stability.
The fact that the order of liquidation is for revival and not otherwise, the shareholder's alleged bias against the ‘Resolution Professional’.
This case brings us to the important issue of the involvement of adjudicating authority in the finalization of the resolution plan.
In the case of Hindustan Construction co. ltd. Vs. state of Bihar and ors an important issue was confronted in front of the Supreme Court and that is the difference between conditional and unconditional guarantee.
Lok Sabha passed the Bilateral Netting of Qualified Financial Contracts Bill, 2020, which allows for enforcement of netting for qualified financial contracts. This bill is passed with aim to bring financial stability.
Applications u/s 7,9,10, the applicant shall serve a copy of application to the registered office of the corporate debtor and to the IBBI, by the registered post or speed post or by hand or by electronic means, before filing with the Adjudicating Authority;
The Hon'ble NCLAT set aside the order passed by the Adjudicating Authority (NCLT Mumbai Bench) and restored the insolvency petition (Corporate Insolvency Resolution) against Mittal Corporation Ltd. NCLAT rejected the plea filed by Punjab Natioanl Bank to initiate insolvency proceedings against Mittal Corp and directed it to decide afresh “expeditiously”.
Recently Supreme Court had directed banks not to label the loans as non-performing assets even if there is default. It is important to stabilise and uplift the economy and the financial system is of utmost importance.
Ex-Chairman of Bhushan Power and Steel Ltd Sanjay Singhal had filed petition challenging the validity of the Insolvency and Bankruptcy Code and has further sought relief on similar grounds as that of the relief granted to Anil Ambani and striking sections 95, 96, 97, 99, 100 and 101 from the Insolvency and Bankruptcy Code.
As per our reports, in the matter of Reliance communications (RCom) chairman Anil Ambani, there has been lately some remarkable orders. In late August, Delhi High Court had put on hold the insolvency resolution process (IRP) proceedings against Anil Ambani in relation to the recovery of Rs 1,200 crore loans given by SBI to his two firms.
The RERA authorities stayed the auction. About 950 homebuyers have invested Rs 328.19 crore in the project. “The financial institutions/lending banks/creditors have to take prior approvals from the authority at two stages
Three year old insolvency proceeding of Auto Amtek may now move into liquidation due to winning bidder invokes “force Majeure” clause of its Resolution plan.
NCLAT set aside Insolvency proceeding of Sarda Agro Oils by stating reason that the claims were filed three years after declaring the account non- performing asset. This 3 judge- bench gave the ruling that, “the date of default is computed from the date of declaration of account as a NPA (Non-Performing Asset) and such date of default would not shift. This is very important to be considered for the purpose of calculation of limitation period of 3 years as prescribed by the Limitation Act 1963
The petition was filed by the two flat buyers who had jointly booked a unit in APIL Sushant Golf City Lucknow and one of them has also booked separate unit in same project, against the Ansal Properties and Infrastructure Ltd (APIL), In the said petition It admitted the insolvency plea against APIL based on the recovery certificate which was issued by the Uttar Pradesh Real Estate regulatory Authority (UP RERA) because as per the agreement between them, the APIL undertook to complete it
The Central Board of Indirect Taxes and Customs (CBIC) vide Instruction No. 390/Misc/3/2019 – JC dated August 21, 2020 issued the revised guidelines for conducting the personal hearing by virtual mode under CGST Act, 2017, IGST Act, 2017, Customs Act, 1962, Central Excise Act, 1944 and Chapter V of Finance Act, 1994. The Board has now decided to make it mandatory for various authorities, such as Commissioner (Appeals), original adjudicating authorities and Compounding Authority to conduct p
Introduction India is on the verge of becoming one of the fastest growing economies of the world. India being in its developing stages in a number of sectors, yet, it has never looked back & has continued to excel rapidly. For a fast-growing economy like India, where even multinational companies are investing rigorously, it is imperative for the law-makers or the legislation to provide the investors, both domestic & international investors; a proper piece of legis
In 2016, the 9 (“Code”) was introduced in India. In such a short span of time, the Code has established its jurisprudence. However, the code requires reforms to keep up with the insolvency regime across the globe and to help the Indian economy overcome territorial boundaries. In January 2019, the centre set up an 11-member working group to look into the working of the Code and the reforms it accordingly needs; ‘Group Insolvency’ being one of them. In March, the Insolvency Law Committee h
Looking at the challenges in the Company Law, the Government of India came up with The Insolvency & Bankruptcy Code, 2016 (“IBC”), a mechanism for time-bound resolution of dispute of corporate entities in financial distress. Since, this code has been an evolving legislation therefore, in past few years it is noticed that many ordinances and amendments have been brought in the code. 9 (Amendment
Given, the limitations of the 9, 2016 (“IBC”) in determining the value of disputed claims during the resolution process, most resolution plans admit the disputed claims with their repayment being dependent on the adjudication of the claim post the approval of the resolution plan. Such an admission of claims has been seen as a method to improve insolvency procedure by enabling time-bound reso
The time-bound resolution of distressed corporate entities is the most important objective of the Insolvency & Bankruptcy Code, 2016 (“IBC”). The Corporate Insolvency Resolution Process (“CIRP”) introduced by the IBC was supposed to lead the charge in achieving this end. Unfortunately, the average time taken for CIRPs that yielded resolution is more than the statutory timeline of 330 days as provid
Facts: The question of law which was framed by the National Company Law Appellate Tribunal (NCLAT) for its decision: “Whether the time limit prescribed in Insolvency & Bankruptcy Code, 2016 for admitting or rejecting a petition or initiation of insolvency resolution process is mandatory?” The question before the NCLAT was as to whether time of fourteen days given to t
When a company goes into liquidation its assets are sold to repay the creditors and business closes down. The liquidation process in India is governed by Insolvency and Bankruptcy Code, 2016. The liquidation process in India is initiated by filing an application as per the terms and requirement by IBC, 2016. Once the order is approved and given by the Adjudicating Authority, the company will start wit
When a company goes into liquidation its assets are sold to repay the creditors and business closes down. The liquidation process in India is governed by 9, 2016. The liquidation process in India is initiated by filing an application as per the terms and requirement by IBC, 2016. Once the order is approved and given by the Adjudicating Authority, the company will start with the
The COVID- 19 pandemic & its consequential lockdown has affected businesses all over the world. To mitigate its impact, governments of various countries have amended their respective insolvency laws & adjudicatory processes. India too has taken certain steps to modify its insolvency law i.e., the Insolvency & Bankruptcy Code (IBC), 2016. Section 10A was introduced by the Insolvency & Bankruptcy Code (Amendment) Ordinance, 2020 on 5th June, 2020. It prohibits the filing of applications
As per our reports, financial consultancy firm Duff & Phelps has dragged the Insolvency & Bankruptcy Board of India (IBBI) to court, over an order against a senior advisor in its restructuring practice. The Insolvency Regulator, IBBI penalized Vijay Kumar Garg, the Resolution Professional (RP) for Gitanjali Gems, Nakshatra World & other companies which were promoted by Mehul Choksi by passing an order
Due to poor management of cash or less cash inflow than what is expected, the company can be declared as insolvent by performing certain insolvency proceedings where the liquidator would acquire all the assets of the company, evaluate them & liquidate those assets in order to pay off the debts. Cross-Border Insolvency refers to treatment of financially burdened debtors where the assets of the debtor
Insolvency is a situation where a legal person (including companies) is not able to pay to debts to its creditors, when they become due & payable. Corporate insolvency may involve several parties such as creditors, shareholders, directors & managers of the company, employees & customers etc. Financial & management consultants, advocates, bankers etc. also play their role in providing professional advisory services.
Recently, the Insolvency & Bankruptcy Board of India (IBBI) has proposed to issue guidelines for imposing a limit on the number of assignments to be handled by an Insolvency Professional (IP) at a certain point of time. Setting a limit on the number of assignments to be taken up by Insolvency Professionals (IPs) is an attempt to fix a system which is not broken.
As per our reports, the National Company Law Tribunal, Mumbai Bench, on 03rd June, 2020 has held that in view of Section 3(23) of Insolvency & Bankruptcy Code, 2016, a foreign entity can also file a petition for initiation of Corporate Insolvency Resolution Process under Section 9 of IBC. A plea under Section 9 of IBC was filed by Forever Glory Trading Limited, the Operational Creditor o
As per our reports, in an insolvency proceedings, the right to continue with the IRP as a Resolution Professional or to replace the IRP with some other RP is with the Committee of Creditors (CoC), as observed by the National Company Law Tribunal. The power to replace an RP is solely & absolutely vested with the CoC, as per the Hyderabad Bench of the NCLT, which rejected an application from RP Mahender Kumar Khandelwal, who was appointed by the CoC as the IRP to manage the affairs of insolvent po
As per our reports, the Insolvency & Bankruptcy Board of India (IBBI) recently in a discussion paper, restricted the number of assignments to be handled by Insolvency Professional (IPs) under the Corporate Insolvency Resolution Process & Liquidation (including Voluntary Liquidation Process under Section 59 of the Insolvency & Bankruptcy Code, 2016. Restriction has not been imposed under the Code or by IBBI regarding the number of assignments to be handled by an IP at given point of time. Ho
As per our reports, the special insolvency resolution framework for MSMEs recommends a lot shorter time period for resolution of a company in 90 days rather than 300 days as provided under the Insolvency & Bankruptcy Code for completion of the procedure and permits promoters of a defaulting MSME enterprise to present a resolution plan. The Central Government is proposing to draft an insolvency law
As per the reports, the National Company Law Appellate Tribunal (NCLAT) has held that liquidation process of a company under the IBC holds precedence over the result of arbitration proceedings under IBC. Objections raised to Bharat Heavy Electricals Limited (BHEL) liquidation of Tamil Nadu-based Surana Power were invalid as majority of secured creditors consented to its liquidation. It would be prejudicial to hamper the liquidation process of a single creditor having only 26.24% share (in value)
As per our reports, in a cash bargain, Sanjeev Gupta which claims Liberty House, has acquired bankrupt companies Adhunik Metaliks and Zion Steel for ?425 crores under the Insolvency and Bankruptcy Code. Liberty House neglected to finish Adhunik's acquisition in its first endeavor. It was given another opportunity by the National Company Law Appellate Tribunal, to assume control over the bankrupt steel
The Bankruptcy Court ordered the revenue department that if the liquidator has taken in account his/her tax dues, they cannot attach the assets of a company in liquidation. Under the Insolvency & Bankruptcy Code, liquidator has powers to take over the assets of the Corporate Debtor, including cash balances etc. as it was ruled by the principal bench of the National Company Law Tribunal in New Del
As per the reports, financial creditors realized 64% of their admitted claims through insolvency process in January-March which is much higher than average of about 46% over the period up to December 2019. The realization was due in large part to the resolution of Jaypee Infratech (JIL), where financial creditors recovered Rs. 23,223 crore, over 100% of the amount claimed as per the latest newsletter issued by the IBBI. With the resolution of Jaypee Infratech asset, the insolvency proces
As per the reports, the Insolvency & Bankruptcy Board of India (IBBI) has reconstituted its Advisory Committee on Service Providers and its Chairman would now be Mr. Mohandas Pai of Manipal Global Education Services. The 12- member panel would advise and provide professional support on regulation & development of the service providers dealt with by the IBBI, according to an order. Bharti Inf
As per the reports, banks are indecisive over the resolution of stress among the corporate borrowers as they find themselves caught between the recommendation of the Central Government to suspend the Insolvency and Bankruptcy Code for a year and the reluctance of the Reserve Bank of India to allow for a one-time loan restricting in the absence of adequate and proper information and data. Deferring the
As per the reports, banks in India have made 124 companies go into liquidation despite resolution plans that promised higher recovery of money. At the end of March 2020, insolvency process for about 914 companies were closed. About 57% of the total insolvency cases which were closed ended by passing orders of liquidation by the tribunals, as compared with 14% that ended in resolution plans. The Insolvency &
Facts of the case: The applicant/ operational creditor in this case, Foseco India filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IB Code, 2016) for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, i.e., Om Boseco Rail Products Limited for alleged default in payment of operational debt amounting to
As per the reports, the Appellate Tribunal has upheld order passed by Honourable NCLT which prohibits appointment of an ex-bank official as Resolution Professional of a bankrupt company due to the possibility of bias. The NCLAT has upheld an order passed by NCLT, Delhi bench over the appointment of a former official of State Bank of India as a Resolution Professional in CIRP of Metenere Ltd. This judgement could have an impact on the Corporate
As per the reports, a pre-packaged insolvency or a pre-pack is a pre-planned process in which a financially distressed company and its creditors tries to reach an agreement with a buyer for its sale prior to initiating insolvency proceedings. This is done by an insolvency practitioner or an Insolvency Resolution Professional (IRP) who is appointed as the administrator/ bankruptcy trustee of such compan
In this case, the operational creditor filed an application under Section 9 of the IBC, 2016 for initiation of CIRP against the corporate debtor, i.e., Durga Enterprises. The Adjudicating Authority admitted the said application and, a Resolution Professional was appointed. The resolution plan submitted by the resolution applicant was approved by 92.65% of voting by members of Committee of Creditors. The NCLT observed that in terms of said plan apart from upfront payment to its creditors, defe
As per the reports, non-bank lenders want the government to revise the terms of Rs. 75,000 crore package to help the industry, saying that the sovereign guarantee available for loans and bond sales should be for a longer period of time. The lenders want a long-term window of at least three years to access credit as they prepare for expansion of new loan post the lockdown. Most of them are set to resume new lending June onwards. The Government should reconsider the modus operandi of the stimul
As per the reports, the NCLT on 12th May, 2020 by way of an ‘order’ directed that any new insolvency application filed by a financial creditor under Section 7 of the IBC, 2016 must be accompanied by a default record from an Information Utility. Not only did it make such filing mandatory for new applications, but it also directed that authorized representatives of financial creditors must file such def
As per the reports, banks are now hamstrung with regard to resolution and recovery as the government has suspended fresh insolvency cases for 12 months concerned over deteriorating asset quality post COVID-19. While the effect of the lockdown is expected to lead to a pile-up of bad assets, the lack of effective recovery mechanisms outside the IBC is a cause of worry for lenders already reeling from bad assets. This effectively closes an important avenue of debt resolution being used by len
While the coronavirus outbreak has led to a surge in demand for N-95 masks and personal protective equipment (PPE), reports of the safety gear being sold at exorbitant rates due to lack of price sealing have also been doing the rounds. Taking cognisance of multiple complaints, Maharashtra Food and Drugs Administration (FDA) has written to the National Pharmaceutical Pricing Authority (NPPA), requesting the body to fix the prices of N-95 masks and PPE kits. The state FDA is seemingly unabl
As per the reports, the dedicated bankruptcy court, i.e., NCLT has approved the revival plan for Mumbai-based Trimax IT Infrastructure & Services from the local subsidiary of Nasdaq-listed Ebix Inc. Ebix Software India Private Limited (ESIPL) will pay upfront Rs. 75 crore to acquire the company. The company owed over Rs. 1,918 to its lenders, including about Rs. 1,700 crore too its financial creditors. “It is made clear that the resolution applicant, i.e., Ebix Software shall takeove
As per the reports, stressed- asset companies, banks and other creditors, and insolvency, as well as resolution professionals, are in a quandary in the absence of any clarity about the fate of applications filed under the IBC before the Covid-19 outbreak in India. Lawyers, resolution professionals and stakeholders said that the announcements made by the Central Government on 24th March, 2020 regarding raising the threshold for invoking IBC proceedings to Rs. 1 crore from Rs. 1 lakh
As per the reports, NCLT has refused to admit insolvency petition filed by India Resurgence Asset Reconstruction Company, a joint venture between Piramal Enterprises and Bain Capital against Indian Steel Corporation, calling the petition to be ‘defective’. “For all reasons, the preset Company Petition… fails and therefore, we are constrained not to admit the same as prayed for at this moment,” the Mumbai Bench of NCLT said in its order. The present petition was filed before the H
As per the records, the NCLT has directed filing of default record from Information Utility along with new petitions under Section 7 of IBC, 2016. As per the order of the NCLT, all concerned are directed to file default record from Information Utility alongwith the new petition being filed under Section 7 of IBC, 2016, positively. It is stated that no new petition shall be entertained without record of default under Section 7 of IBC. The order has also directed Authorized Representatives/
In an organizational reshuffle, the NCLT has transferred eight members to different benches across India with immediate effect. According to a notification issued by the NCLT Registrar on 30th April, 2020, the list comprises of four judicial members and four technical members. The notification said that “the members shall move to their new stations of posting, after lockdown restrictions on movement are withdrawn by the central government and the respective state governments”.
As per the reports, experts said that investors who have bid for assets under the IBC are expected to reassess their offers as cash flow projections have gone awry mid the covid-19 pandemic and the ensuing nationwide lockdown. The IBBI has already said that the period of lockdown imposed by the government will not be reckoned in the resolution timeline. The lockdown has been in force since 25th March and ends on 18th May, if not extended further. The entire thought pr
Continuing efforts to ensure a more conducive regulatory framework for stakeholders, IBBI has sought comments from the public on existing regulations under the Insolvency law. IBBI is a key entity in implementing the IBC. IBBI said that they may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternative solutions to address them. IBBI said in a press release that “This is akin to crowd sourcing of ideas. This would en
A five- judge bench of the Supreme Court held on 5th May, 2020 in Pandurang Ganpatii Chaugule v. Vishwasrao Patil Murgud Sahakari Bank Ltd. that co-operative banks come under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Act, 2002 (SARFAESI Act, 2002). The bench held that co-operative banks are “banks” for the purposes of Section 2(1)(c ) of the SARFAESI Act, and that the recovery procedure under Section 13 of the Act is also app
India expects bad debts of its banks could double after the Coronavirus crisis brought to the economy a sudden halt. Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of sourced loans, which was equivalent to about 9.1% of their total assets at the end of September 2019. The Government of India considers that NPA’s of the banks could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default. A fresh increase in bad debts cou
The date of closure of the Corporate Insolvency Resolution Process (CIRP) of the financially distressed real estate project, Dewan Housing Finance Corporation Limited (DHFL) is expected to be extended to June 30th, 2020 from May 31st, 2020. This will give more time to the investors (resolution applicants) who have participated in the Expression of Interest (EOI) to submit their re
The Resolution Professional (RP) of the grounded Jet Airways has served a notice to SpiceJet in order to seek payment for engines that were leased out to the latter, i.e., SpiceJet. Jet Airways was dragged to the National Company Law Tribunal (NCLT)/ Adjudicating Authority over unpaid dues in June 2019. The NCLT had considered Jet Airways as a ‘going concern’, after which a few assets of Jet Airways’ were leased out to the competitors of industry to recover some cost. A notice has be
The Union Cabinet has cleared a proposal on 22nd April, 2020 from the Ministry of Corporate Affairs to give companies relief from insolvency for the next six months i.e., October, 2020 by amending the Insolvency and Bankruptcy Code, 2016. This amendment has been proposed to give a six month window. Lenders or creditors during these six months, under the current impact due to the pandemic
Issues Raised in this case (2020 SCC Online SC 292)- Whether the Maharashtra Housing & Area Development Act (MHDA Act, 1976) would be prevailing over the Bankruptcy & Insolvency Code? It is held by the Honourable Supreme Court that on the plain terms of Section 238 of the Bankruptcy & Insolvency Code, 2016, the Code must prevail. The idea behind the moratorium under Section 14 of the IBC is to alleviate/remove corporate sickness and a
As per the Notification No. 11/2020- Central Tax issued by the Ministry of Finance dated 21st March, 2020, it has been made mandatory for individuals to get themselves registered for done aadhar authentication/ verification from the website of the UIDAI of the Central Government of India. They shall follow the procedure of getting themselves registered for availing special benefits for obtaining the aadhar authentication. They shall be treated as a distinct/ separate person of the c
The Registrar of NCLT, Shiv Ram Bairwa has issued a notice dated 14.04.2020, due to further extension of lockdown announced by the Central Government until 03.05.2020 issued by NCLT. The Honourable President of India has with regards to the functioning of NCLT during lockdown, in addition to the notices issued earlier, will be taking further steps depending upon the requirement of the litigant public and the same will be announced as and when any further decision will be taken in the near fut
About SRS Limited: SRS Limited, a public Listed Company registered under Companies Act, 1956 is a diversified Company with a business portfolio comprising of Gold and Jewelry (retailing, wholesaling and manufacturing), Cinema Exhibition, Retail and F&B. The Company was incorporated on August 29, 2000 with the objective of trading in FMCG Goods and it later entered into other business segments. The four business verticals of the Company enable it to profitably
Relaxation by MCA - The Ministry of Corporate Affairs vide circular dated 8th April, 2020 has relaxed provisions related to passing Ordinary and Special Resolution in its meeting of members in view of the current extraordinary circumstances prevailing in the country due to the pandemic caused by Noval Coronavius, COVID-19, which requires social distancing. The companies are requested to take all decisions of urgent nature which requires the approval of the members, other than items of ordin
The NCLT has appealed to the litigants and stakeholders under the Companies Act, 2013 and IBC, 2016 to file Joint Memo of Written Statements (WS) to expedite virtual hearings and for dispensation of justice without any delay during the Novel Coronavirus, COVID-19 lockdown. It has stated that the Memo will be a user-friendly document that will help to arrive at decisions quickly and to avoid the filing
1. Form INC-28 is to be filed after the appointment: The IRP/RP/Liquidator would have to first file the order of the NCLT in order to approve him as the IRP/RP/Liquidator in form INC-28 on the MCA-21 portal. Following points must be kept in mind while filing the form: Form No. INC-280 Select the drop down box in field 5(a)(iii) by selecting the appropriate section of IBC, 2016. After filling in the form, the IRP/RP/Liquidator while
The Resolution Plan of Gurgaon-based Dhankua Laboratories for the revival of Chennai- based debt-ridden company Orchid Pharma Ltd. has been implemented, which is potentially fetching secured lenders around 32.3 per cent of recovery. The culmination of the long-drawn resolution process for the pharmaceutical company, Dhankua Lab, which saw its first approved resolution plan by the NCLT, by US-based company Ingen Capital, got annulled due to the non-payment of the required amount. The NCLT, by
The Finance Minister Nirmala Sitharaman suggested that if the situations prevailing in the country due to the outbreak of pandemic disease of Novel Coronavirus, COVID- 19, changes for the worse in the coming future, the Central Government will consider to suspend Sections 7, 9 and 10 of the IBC, 2016 for the next 6 months i.e., till September, 2020. This is an appreciable step taken to help the companies which are being forced into the insolvency proceedings on default of loans. The limit a
In the view of the Advisory on Social Distancing Measure in view of the spread of pandemic disease of Novel Coronavirus, COVID- 19, it has been decided by the Examination Division of the IBBI to suspended all the enrolments for the Limited Insolvency Examination and the Valuation Examinations form 21st March, 2020 to 31st March, 2020. All enrolments have been suspended till 14th April, 2020 in view of the lock-down announced by the Central Government. The candi
The National Company Law Appellate Tribunal (NCLAT) approved the resolution framework proposed by the Government on 12th March, 2020 in the final judgement on the insolvency proceedings against Infrastructure Leasing & Financial Services (ILFS). The money invested in IL&FS by the Life Insurance Corporation of India, State Bank of India, Central Bank of India and IL&FS Employees Welfare Trust, amongst others constituted public money, and hence the distribution framework under the
1. As per Circular to clarify by CBEC-20/16/12/2020- GST in FAQ, it has been provided that: Once a business entity defaults certain threshold amount under the IBC, 2016, corporate Insolvency Resolution Process (CIRP) gets triggered and the management of such business entity or Corporate Debtor and its assets vests with an Interim Resolution Professional (“
As per Sub-regulation 3 of regulation 40B of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for the Corporate Persons) Regulations, 2016, an IP shall ensure that the Forms and its enclosures filed under this regulation are accurate and complete. Sub- regulation (4) enables to modify either by way of correction or updation of a Form already filed upon payment of a fee.
The Central Government has notified a raise in the threshold of default which was earlier at Rs. 1 lakh under Section 4 of IBC, 2016 to Rs. 1 crore for the initiation of insolvency proceedings under the Code. As per the gazette notification, it has been said that: “In the exercise of the powers conferred by the proviso to Section 4 of the Insolvency & Bankruptcy Code, 2016, the Central Governm
PANJIM: The government, in a notice, has warned the stakeholders against hoarding of essential commodities like masks, hand sanitizers; nor sell at a price higher than printed on the packet or commodity. In case any hoarding or black marketing of this products/commodities are noticed/reported strict action under the Essential Commodities Act, 1955 and/or any other relevant Acts/Rules in force will be initiated against the defaulters during the aforesaid period. The wholesalers and retailers/p
The consumer affairs ministry has asked states to distribute hygiene products such as hand sanitizers and face masks through ration shops at fair prices and easy availability. Consumer affairs secretary Pawan Agarwal, while taking a review meeting with states over video conference, said that the industry representatives have shown interest in distributing such hygiene products at lower prices through the fair price shops. “Few states have started distributing these items through public distrib
It was in Bimal Kumar v. Bank of India (Company Appeal (AT) (Insolvency) No. 1166 of 2019) held that the National Company Law Appellate Tribunal (NCLAT) has held that the proceedings before the Debt Recovery Tribunals (DRT) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) etc. will not extend limitation period for the purpose of Insolvency & Bankruptcy Code, 2016. The shareholders and the directors of the C
The real global emergency is compaies and industries getting bankrupt. Though human lives are more precious and they are of grave concern.But we must not forget that the food, economy, daily needs, and everything for survival will be from the market, the companies and different industries. Corona Virus or rather the panic because of Corona Virus has greater economic danger than the health risk, when compared in actual result. The result that the unemployment rate has risen due to people being
It has been identified that IBC and cases at NCLT are rising with the growing conditions of the economy. The importance as well as the burden on NCLT is on hike. A recommendation of separate bench of the National Company Law Appellate Tribunal will be set up at Chennai. It is aimed that the new NCLAT bench will hear appeals against the orders of the Benches of the National Company Law Tribunal (NCLT) having its jurisdiction over Tamil Nadu, Karnataka, Kerela, Andhra Pradesh, Telanagana, Laksh
The National Company Law Appellate Tribunal (NCLAT) has dismissed the telecom department’s plea, citing delay in appeal against the order of the National Company Law Tribunal. The appeal is time- barred and for want of jurisdiction, the NCLAT dismissed. DoT had raised an issue in its plea that whether licence/ spectrum to run a telecom company could be subject to moratorium during the insolvency proceedings or not. Appeal against the NCLT’s order which held that the spectrum and licence o
The insolvency condition of Yes bank has provoked the whole country. The central government has been acting as the saviour and RBI as the resolution applicant by introducing the Insolvency Resolution Plan. There is anticipation of moratorium ending soon ie. maybe before the designated time given as SBI acquires 49% stake. If the Resolution process of YES bank is prolonged, there may be a risk that t
Ministry of Corporate Affairs (‘MCA’) has vide Notification dated January 24, 2020, notified the Companies (Winding-Up) Rules, 2020 in order to provide a systematic procedure of winding up of a Company under Cos Act. The Rules cover both types of Companies that have applied for winding up under section 271 as well as the companies opting for summary liquidation under section 361 of the Companies Act, 2013. The aforesaid Rules comprise of 191 rules and 95 forms and shall be effective from Apr
New Delhi: The National Company Law Appellate Tribunal (NCLAT) has dismissed an order of the dedicated bankruptcy court initiating insolvency proceedings against e-commerce major Flipkart. A three-member bench of the NCLAT has directed the interim resolution professional (IRP) appointed by the Bengaluru bench of the National Company Law Tribunal (NCLT) to hand over the records as well as the assets of the company back to its promoter immediately. Cloudwalker Streaming Technologies Pvt Ltd,
Mumbai: NCLT to intervene - The Enforcement Directorate (ED) has sought permission from the dedicated bankruptcy court to intervene in the insolvency resolution pleas against Sterling group companies Sterling International Enterprises and Sterling SEZ & Infrastructure. ED on Wednesday sought more time from the Mumbai bench of the National Company Law Tribunal (NCLT) to file its response challenging the Sterling promoters’ move to pay the lenders to the two group companies to withdraw th
Discuss insolvency law - MUMBAI: Member of Parliament and Chairman of Standing Committee on Finance Jayant Sinha met representatives of homebuyers to discuss their objections to amendment to the Insolvency & Bankruptcy Code, 2016. The proposed amendment requires a minimum threshold of homebuyers to come together in order to initiate proceedings under the code against an errant builder. Sinha
Benjamin Disraeli presciently said that debt is a prolific mother of folly, and of crime. When a company runs into debt, it is the creditor who inarguably suffers more than the debtor. Insolvency laws aim to assist both the debtor and the creditor in the management and disposition of the debtor’s assets. Recent months have witnessed insolvency petitions against numerous companies being admitted. A few of these companies may also have assets in other jurisdictions, and one of the crucial questi
The Gurgaon-based company approached the court claiming it has reached a settlement with the financial creditors. The NCLAT, however, said that the insolvency proceedings can be resumed in case the company fails to clear its dues. “The appellant is directed to comply with the ‘Terms of Settlement’, failing which it will be open to the first respondent to move an appropriate application before this appellate tribunal for initiation of contempt proceedings against the appellant or the dir
NCLT Extends Videocon - "This is for the extension of the CIRP process as it ends on 4th of February. Public notices are being given for the submission of bids on 31st of Jan and we see a lot of it coming in, so we request the CIRP process be extended further," said the counsel representing Videocon Industries. Videocon Group had sought expression of interests (EoIs) for its 13 group companies undergoing resolution in the Indian bankruptcy court in October and it was to come to an end by Janu
The National Company Law Appellate Tribunal (NCLAT) on Friday asked the UK-based Liberty House to file a revised affidavit by January 20, outlining specific time-frame and other details of its resolution plan for insolvent steelmaker Adhunik Metaliks and group firm Zion Steel. On January 7, the two-member NCLAT bench, headed by chairperson Justice SJ Mukhopadhaya, gave Liberty House time till January 9 to submit an “affidavit giving therein its unconditional and unqualified proposal showing
NEW DELHI: CBI has arrested an insolvency resolution professional (IRP) appointed by the NCLT and another person for allegedly receiving a bribe of Rs 3.5 lakh from a consultant by threatening him with a criminal case, officials said on Monday. In what is likely to be the first corruption case by the CBI against an NCLT-appointed IRP, the agency has taken into custody Arun Mohan, the IRP, and his friend Paresh Kumar, CEO of New Delhi-based Multimax Asset Reconstruction Pvt Ltd for allegedly r
Mumbai: Lenders to Karvy Stock Broking Ltd have started exploring other avenues after failing to secure any relief from the Securities and Exchange Board of India (Sebi) on client shares pledged by the brokerage. The options include filing pleas with the Debt Recovery Tribunal (DRT) and Insolvency and Bankruptcy Board of India (IBBI), and selling minority stakes in sister concerns of Karvy. A total
Resolution of Bhushan Power & Steel (BPSL), which is tied in legal knots, may stretch further even with the latest set of amendments to the Insolvency and Bankruptcy Code (IBC) approved by the Cabinet. The National Company Law Appellate Tribunal (NCLAT) that is hearing an appeal from JSW Steel — the winning bidder — on Thursday set a fresh date for hearing on January 13. Lenders had approached the Supreme Court, which was slated for hearing next week. They had moved apex court prim
In a move that will remove the final hurdle for companies taking over stressed firms, the Union Cabinet on Wednesday approved an amendment to the Insolvency and Bankruptcy Code (IBC) that prohibits attaching assets of companies resolved under the mechanism for offences committed by the previous management or promoters. The decision assumes significance as there have been instances of enforcement agencies taking action against companies whose resolution process has already been completed. The
The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed an order passed by NCLT to make the Ministry of Corporate Affairs a party to all applications filed under the Insolvency and Bankruptcy Code as well as the Companies Act. An NCLAT bench headed by Chairperson Justice S J Mukhopadhaya stayed the order passed by the Principal bench of the National Company Law Tribunal (NCLT) and fixed January 2, 2020, as the next date of hearing. The appellate tribunal's di
MUMBAI : Having burnt their fingers in the Essar Steel insolvency case, lenders are looking for a speedier and time-bound resolution for Dewan Housing Finance Corp Ltd (DHFL) in the bankruptcy tribunal. Stuck in the tribunal since August 2017, the Essar Steel insolvency case was finally resolved by the Supreme Court last month. DHFL is the first company to be referred to the National Company Law Tribunal (NCLT) after the government notified new rules for such proceedings against financial
Cases under IBC - As many as 10,860 cases under the Insolvency and Bankruptcy Code were pending before the National Company Law Tribunal (NCLT) at the end of September 2019, Parliament was informed on Tuesday. "As per the data provided by National Company Law Tribunal (NCLT), total 19,771 cases were pending with NCLT benches on 30.09.2019, which include 10,860 cases under Insolvency and Bankruptcy Code (IBC), 2016," Minister of State for Finance and Corpora
Insolvency petition filed - Hyderabad: The National Company Law Tribunal’s bench in Amaravati, Andhra Pradesh, received the first personal insolvency petition in the country on Monday, the day the amended Insolvency and Bankruptcy Code (IBC) bringing personal guarantor under its purview came into effect. Omkaram Venkata Ramana, who had stood personal guarantor to five firms that defaulted on Rs 38.66 crore of bank loans, filed the petition to initiate personal insolvency
On 28th November 2019, The Insolvency and Bankruptcy Board of India published the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2019. Certain amendments made by these Regulations are resulting in the Insolvency and Bankruptcy Code (Am
The Insolvency and Bankruptcy Code, 2016 foresees Insolvency Proceedings, restructuring, and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner. The main purpose of Insolvency and Bankruptcy Code is to maximize the value of assets of such persons, to promote entrepreneurship, to increase the availability of credit and stabilizing the interests of all st
Aircel's Spectrum License - The National Company Law Tribunal (NCLT) has ruled that Aircel has the "right to use" its spectrum and directed the Department of Telecommunications (DoT) not to suspend the bankrupt telco’s licenses. The verdict offers huge relief to Aircel, which, under an insolvency process, is on the verge of selling its assets, of which airwaves are the most valuable. The court's conclusion is also crucial to another bankrupt operator -
MUMBAI: There seems no slowdown in the business of law as the country’s legal sector has increased its fee income by more than 62% in two years at $2.1 billion, or about Rs 15,000 crore, a recent report shows. A slew of cases involving litigation on account of new laws such as Insolvency and Bankruptcy Code and the implementation of goods and service tax (GST) regime, together with robust dealmaki
Taking forward their plan to formulate a resolution plan for McLeod Russel outside the scope of NCLT, the company's lenders, led by ICICI Bank, which has the largest exposure, have appointed LSI Financial Services to undertake a techno-economic feasibility study based on which the creditors will decide the way forward. The study primarily focusses on the health of the gardens, and will include McLeod's current and potential level of earnings before interest, tax, depreciation and amortisation
Troubled wind turbine maker Suzlon Energy may head to National Company Law Tribunal (NCLT) as lenders see no possibility of resolution, two people familiar with the matter told FE. “There were two investors who showed interest in Suzlon, but both of them have backtracked. We have no option but to refer this account to NCLT”, a source added. The two investors are said to be Canada-based Brookfield and Denmark-based Vestas Wind Systems. The banks were in process of finding a resolution o
Ever since homebuyers were given the status of financial creditors under the Insolvency and Bankruptcy Code (IBC), a lot of them have moved the National Company Law Tribunal (NCLT) against the developers of stalled and delayed projects. “Since June 2018 (after getting the financial creditor status), a total 1,821 cases have been filed by homebuyers against builders under the code," said minister of state for corporate affairs Anurag Singh Thakur last week, in Parliament. The issue is not go
Builders continue to ask for a hefty cash pay-out in property and land purchases forcing customers to either drop plans or raise cash from other sources. And all this is happening when large property markets with established realty developers are moving towards cheque payment in a big way. Smaller cities like Ahmedabad, Chandigarh, Jaipur, Noida, Aurangabad, Kochi and Indore are still witnessing large-scale usage of cash in property sales. “Large property markets, being under the direct gla
The National Company Law Appellate Tribunal(NCLAT) has allowed Reliance Industries to delist textile manufacturer Alok Industries, which it has acquired through insolvency process. A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya has modified the order passed by the National Company Law Tribunal (NCLT), Ahemdabad, which denied such permission. While approving Rs 5,052-crore bid of RIL for Alok Industries on March 8, 2019, the NCLT did not give its approval to RIL's p
Homebuyers have opposed a move by real estate developers to get the Insolvency and Bankruptcy Code (IBC) amended, saying the move is not only “illogical and illegal but also regressive” and would send a wrong message and derail the government’s efforts to reform the sector. “Having failed legally, these builders are now mounting pressure on your government to amend IBC to suit their interest by either completely barring homebuyers from approaching the
Citing the information received from NCLT, Minister of State for Corporate Affairs Anurag Singh Thakur said that a total 1,821 cases have been filed by homebuyers against builders since June 2018 under the Code. New Delhi: Homebuyers have filed more than 1,800 cases against builders under the Insolvency and Bankruptcy Code (IBC) since June 2018, the government told the Lok Sabha on Monday. These are the number of cases pending before the National Company Law Tribunal (
More than two years ago, the Reserve Bank of India ordered local banks to take Essar Steel and 11 other borrowers to ‘trials’ under a revamped bankruptcy law enacted in late 2016. The jury is finally out on India’s most significant piece of bad loan legislation: It has, unequivocally, recognised the primacy of secured creditors in asset-sale proc
NBFCs with Assets - The Reserve Bank can now seek resolution of non-banking financial companies having assets worth of at least ?500 crore under the insolvency law, a move that is likely to help in addressing woes in the NBFC sector. After discussions with the central bank, the corporate affairs ministry on Monday issued a notification specifying the categories of financial service providers (FSPs) that can be taken up for resolution under the "generic framework" of the
Consider Haldiram Snacks - The National Company Law Tribunal (NCLT) has directed the lenders of Kwality Ltd to reconsider the revised ?145-crore offer by Haldiram Snacks to acquire the debt-ridden dairy firm. The Delhi-based bench of the tribunal has also extended the Corporate Insolvency Resolution period by another three weeks and directed the Committee of Creditor (CoC) to reconsider the enhanced offer. Earlier, the lenders of Kwality Ltd had rejected the ?142 crore bid of Delhi-based
New Delhi: NCLAT Rejects PepsiCo - NCLAT has rejected the plea of beverages giant Pepsico India Holdings seeking release its machinery from Oceanic Tropical Fruits, which is under the insolvency process. The beverages major had moved the NCLAT against the order passed on May 28, 2019, by the Chennai bench of National Company Law Tribunal (NCLT) denying permission to PepsiCo to take back its machinery that was lying at Oceanic Tropical Fruits. The NCLAT observed that Pepsico India Holding
Ruling on the long fought Essar Steel insolvency case, the Supreme Court on November 15 set aside NCLAT judgement and said that the ultimate discretion on distribution of funds was with the Committee of creditors. The Committee of Creditors (COC) consists of banks. The NCLAT had earlier said that the funds from the winning bid should be distributed equally among operational and financial creditors. The issue saw a keen tussle among the banks and separately between the financial institut
NEW DELHI: The government is considering a formula for distributing the proceeds of insolvency resolution among financial and operational creditors in a fixed proportion, said people with knowledge of the matter. The goal is to protect the interests of operational creditors and reduce delays due to litigation, ensuring that the objective of the Insolvency and Bankruptcy Code (IBC) is preserved. “This is one of the
Aviva Life Insurance has become the first financial company to be admitted into Insolvency and Bankruptcy Code (IBC) proceedings after the National Company Law Tribunal (NCLT) upheld a landlord’s claim accusing the insurer of failing to meet its payment obligations and ordered the commencement of the company’s insolvency process, court documents were seen by ET reveal. “Considering the circumstances, this tribuna
The government is mulling a special window for resolution of stressed non-banking finance companies (NBFCs) under the Insolvency and Bankruptcy Code (IBC), a senior government official said. A special window is certainly something which is being examined closely, the official added. The move comes against the backdrop of financial sector players like Dewan Housing Finance Corporation Ltd (DHFL) facing troubles.
The first national meet of officials of the Real Estate Regulatory Authority (RERA) is likely to brainstorm among others issues the scenario emerging out of the August 9 order of the Supreme Court, where it upheld the validity of the IBC, which conferred the ‘financial creditor’ status on homebuyers. Besides RERA officials from the states, the one-day conclave to be held in Lucknow on Monday will be attended by Uttar Prades
The National Company Law Appellate Tribunal (NCLAT) has set aside an order of admission under the Insolvency and Bankruptcy Code, 2016 on the ground that the order was passed by a member singly after the retirement of the fellow member of the Division Bench. The order was passed by a three-member bench of NCLAT comprising Chairperson, Justice SJ Mukhopadhyay, Member (Judicial) Justice Venugopal M and Member (Judicial) Justice Jarat Kumar Jain. The Vistra ITCL (India) Ltd. had filed an appl
The IBBI data also shows about 56.17 per cent of the CIRPs, which were closed, ended in liquidation, and only 14.93 per cent ended with a resolution plan. In over three years of the Insolvency and Bankruptcy Code, the number of bankrupt companies liquidated under the regime has far exceeded the number of corporate resolutions, by nearly four times, somewhat defying the actual purpose of the new system. While 156 of the cases admitted under the Corporate Insolvency Resolution Process (CIRP) ha
There is perhaps a ray of hope for the distressed bank account holders of PMC Bank. In a move aimed at giving a huge relief to the PMC Bank account holders, the administrator appointed by the Reserve Bank has reportedly asked the Mumbai Police to release the seized assets in connection with the bank scam for initiating auction process, according to a report in The Economic Times. The administrator reportedly asked the
Gurugram-based Alok Kumar Agarwal has been appointed the interim resolution professional by the NCLT to oversee the travel company's affairs. The National Company Law Tribunal (NCLT) has admitted a plea to initiate insolvency proceedings as well as appointed a resolution professional for Cox & Kings for defaulting on a loan. The NCLT admitted the plea by Rattan India Finance to initiate insolvency proce
The resolution plan so reached can then be placed before the NCLT for approval, so that it can be implemented. The pre-packaged resolution scheme is expected to aid the existing insolvency framework and cut costs and time of the resolution process. The practice of opting for pre-packs is a standard approach in the UK, on whose insolvency legislation the Indian code is based. Banks will likely have window to scout for prospective buyers of stressed assets for their expeditious resolution ev
Sitharaman’s comments came amidst the alleged Rs 4,355 crore fraud at Punjab and Maharashtra Co-operative (PMC) Bank. Finance Minister Nirmala Sitharaman has said that uncertainty arising out of one case should not be generalised about the efficiency and effectiveness of Insolvency and Bankruptcy Code. Sitharaman was responding to a question on a particular recent case which many allege reflects some major loop
Companies Under NCLT - The total outstanding duty saved amount / dues along with interest, and any penalty imposed under Foreign Trade (Development and Regulation) Act, or any other dues, shall be counted as part of the dues to the govt against the said firm / company. Under the Insolvency and Bankruptcy Code, NCLT deals with cases of payments defaults. New Delhi: Companies that are under the adjudication proceedings before the NCLT have been directed to inform the Directorate GeneralNSE -
State Bank chairman Rajnish Kumar on Tuesday said the Enforcement Directorate and other central law enforcement agencies should restrict to attaching personal assets while investigating a promoter and keep off the company which is under the insolvency process. Speaking a day after NCLAT asked the ED to release the attached properties of Bhushan Power & Steel which is being taken over by JSW Steel, Kumar asserted the
Introduction of Insolvency and Bankruptcy Code has drastically restructured the current situation of debtor and creditor equation. Post implementing the code creditors are not needed to pursuit the debtor, the situation has reversed now. The insolvency resolution process for individuals includes filing of an application for insolvency by paying requisite fees and following the valuation procedure. National company law tribunal protects individuals and companies in managing insolvency and bankrup
New Delhi: The government is planning to raise the threshold for invoking bankruptcy proceedings to prevent businesses being dragged into bankruptcy tribunals for minor defaults, corporate affairs secretary Injeti Srinivas said on Monday. Injeti was referring to cases where it has been observed that in few sectors, particularly where there has been large number of applications coming where single class borrowers such as homebuyers or debenture holders have triggered insolvency proceedings.
The government-appointed Insolvency Law Committee (ILC) will meet on October 15 to deliberate on various proposed reforms to the existing insolvency and bankruptcy code (IBC), including new concepts such as group insolvency, said a member of the panel. “ILC will be meeting on October 15 to discuss the various reforms,” MS Sahoo, Chairperson, Insolvency and Bankruptcy Board of India (IBBI), and a member of ILC, told BusinessLine. He was responding to a query on the next course of legisl
The NCLAT has held that the pendency of a suit filed by the corporate debtor against a financial creditor, cannot bar it from initiating insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Appellate Tribunal headed by Justice S J Mukhopadhyay also reiterated that pre-existing dispute cannot be a subject matter of Section 7, although it may be relevant under
Home-grown snack maker Haldiram has emerged as the sole bidder for acquiring loss-making Kwality Dairy with a bid worth Rs 130 crore after global private equity giant KKR & Co. dragged the company to bankruptcy court, a report in PTI stated, citing sources in the know. The lenders are likely to vote on Haldiram's bid later this month, the news agency quoted sources as saying. KKR had reportedly filed insolvency plea before the Natio
The National Company Law Appellate Tribunal ("NCLAT") reversed the order of NCLT while adjudicating upon the matter concerning insolvency of Sterling Biotech. The NCLAT allowed the creditors to withdraw the insolvency petition as per section 12A of the Insolvency and Bankruptcy Code ("IBC"), 2016 and to settle with the promoters of the Corporate Debtor. Thereby, allowing the promoters of the Corporate Debtor to take the control after making full payment to the lenders. An application under se
Tata Steel has walked away with a profit of ?5,000 crore made by Bhushan Steel during the insolvency period stretching over 18 months. This contrasts with the National Company Law Tribunal (NCLT) ruling that the profit made by Bhushan Power and Steel during the insolvency period belongs to the financial and operational creditors. JSW Steel moves NCLAT JSW Steel, the winning bidder of Bhushan Power, has moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT’s order. A
NEW DELHI: The National Company Law Tribunal (NCLT) Mumbai on Tuesday initiated corporate insolvency resolution process against Kasata Hometech under Section 7 of the Insolvency and Bankruptcy Code 2016. The court has appointed Jugraj Bedi as the interim resolution professional (IRP) for the case. The court directed the IRP to make public announcement. The financial creditor said that a debenture holders' representative agreement dated March 29, 2016 was entered into between Kasata Hometec
According to him, innovative ways need to be looked at to ensure that homebuyers do not abuse the insolvency resolution framework. The government is looking into setting a minimum threshold of allottees for homebuyers to be able to initiate insolvency proceedings against real estate developers according to a senior government official. Under the Insolvency and Bankruptcy Code (IBC), homebuyers are c
The ministry had earlier proposed the appointment of Chitale & Co, CNK & Associates LLP, Borkar & Mazumdar & Co, and GM Kapadia &Co as auditors. The Ministry of Corporate affairs on September 27 moved the National Company Law Tribunal to file an application seeking a change in the auditors of Infrastructure Leasing and Financial Services Ltd. The move comes in the wake of Supreme Court allowing government to approach Mumbai Bench of NCLT for appointment of new auditors.
The National Company Law Appellate Tribunal (NCLAT) on Thursday allowed the Dutch court administrator of Jet Airways to attend the meetings of the bankrupt airline's Committee of Creditors (CoC). With this ruling, the NCLAT has finalised the cross-border insolvency protocol for the airline. The order comes after the counsel representing both the resolution professional (RP) of Jet Airways and the Dutch court administrator informed the appellate tribunal last Friday that both sides have agr
Turns out, a number of multiplexes and food chains may have been fudging up the amounts of various snacks and food items they dole out against payment taken. And now, the legal metrology dept has sent out notices to the likes of Domino’s Pizza, McDonald’s, Cinepolis, E-Square and more Ever wondered if the size of your popcorn tub looked debatable, or your ‘medium’ cold drink seemed rather small? A number of such discrepancies have now come to the fore in the city, be it for snacks l
In a landmark judgement delivered earlier this month, the National Company Law Appellate Tribunal has allowed Group Insolvency of six real estate companies in order to arrive at a consolidated Resolution Plan for the total development of a township project undertaken by them in Haryana. The Companies referred to group insolvency are Sachet Infrastructure Pvt. Ltd, Magad Realtors Pvt. Ltd, Mehak Realtech Pvt. Ltd, Sameeksha Estate Pvt. Ltd and Jamvant Estates Pvt. Ltd who would now undergo ins
The resolution professional of Jet Airways India Ltd. moved the National Company Law Tribunal today seeking direction against certain members of the committee of creditors for speedy release of funds for interim financing. “Jet Airways is facing complications in receiving funds from abroad,” the counsel representing the resolution professional said, adding that without timely interim financing, the “corporate insolvency resolution process would come to a grinding halt”. The committ
Under legislation included in the draft Finance Bill, the Government is planning that, from 6 April 2020, certain tax debts owed by an insolvent company – including VAT, PAYE, and employee NICs – will be repaid to HMRC in priority to debts owed to floating charge holders and unsecured creditors, including a company’s pension scheme and its suppliers. Currently, HMRC is repaid alongside other unsecured creditors. The letter, which is signed by ICAEW, ACCA, ICAS and trade body R3 among ot
The National Company Law Tribunal (NCLT) has initiated a corporate insolvency resolution process against ABW Infrastructure under Section 7 of the Insolvency and Bankruptcy Code 2016. The court has appointed Anand Chandra Swain as the interim resolution professional (IRP) for the case. It directed the IRP to make a public announcement within three days of the order. Bipn Industries pleaded that it had invested Rs
-By Satvik Varma The insolvency proceedings against Jet Airways in India and the Netherlands bring to fore the lacunae in the Insolvency and Bankruptcy Code (IBC), 2016 to deal with cross-border insolvencies. Cross-border insolvency involves the handling of distressed debtors who have assets and/or creditors in several countries, and become subject to insolvency proceedings in multiple jurisdictions. If these companies were to flounder, and insolvency proceedings get initiated, it is imper
Asking for maintaining the status quo, the NCLT said if SBI is allowed to execute the sale as advertised, the Videocon Group may suffer an irreparable losses The order came after SBI has advertised to sell the upstream oil and gas assets of Videocon in Brazil and Indonesia inviting EOIs MUMBAI : The National Company Law Tribunal (NCLT) has asked SBI not go ahead with its plans to sell the overseas oil & gas assets of
The shipyard controlled by Anil Ambani (pictured) is facing the prospect of bankruptcy after failing to get creditors’ approval for restructuring Rs 70 billion ($970 million) of debt, people familiar with the matter said. The bankruptcy tribunal will consider putting Reliance Naval & Engineering in bankruptcy on Wednesday as no new repayment plan was submitted after lenders, led by IDBI Bank, rejected an earlier offe
In what is seen as another sign of impending economic crisis, the National Company Law Tribunal (NCLT) has ordered insolvency proceeding against the Mumbai based housing giant, Housing Development and Infrastructure Ltd (HDIL). To run the insolvency process, the debt-ridden realty firm, has appointed Abhay Narayan Manudhane as the interim resolution professional (IRP) on Friday. In a re
What should the domestic company law tribunals do when a foreign court has already triggered insolvency proceedings against an Indian entity – this question has popped up before the NCLAT in the Jet Airways insolvency proceedings. In an interesting turn of events, the NCLAT while hearing an appeal filed by the Administrator appointed in the Dutch Bankruptcy Proceedings, has now sought a response from the lenders of Jet Airways on whether they intend to coope
Amtek Auto was among the first list of the 12 companies that were referred by the Reserve Bank of India (RBI) in 2017 to respective banks for the initiation of insolvency process for defaults The National Company Law Appellate Tribunal (NCLAT) on Friday ordered liquidation of debt-ridden Amtek Auto as it declined lenders' request for extension of the insolvency resolution process deadline. Amtek Auto was among the first list of the 12 companies that were referred by the Reserve Bank of Ind
GE stock fell sharply on Thursday after a whistle blower report accused the company of perpetrating a “bigger fraud than Enron”, according a website set up specifically to address the issue, gefraud.com. The report’s author, Harry Markopolos, was also a whistle blower during the Enron fraud. In the report, Markopolos alleges that GE, which the website refers to as “GEnron”, is hiding serious financial problems. In a statement to the media, GE emphatically denied ever speaking to
Parliament on Thursday passed the Insolvency and Bankruptcy Code (Amendment) Bill 2019, which brought in eight amendments as part of efforts to ensure that the code remains vibrant and not lend itself to any interpretative ambiguities. The Bill — which was earlier this week passed by the Rajya Sabha — was on Thursday passed by the Lok Sabha after a nearly three-hour-long discussion on the amendments.
Insolvency and Bankruptcy Board of India came into practice on 1st of October 2016 to control and secure diverse bad loan cases revealed by different creditors, which particularly engaged banks in India. The IBBI comes under Insolvency and Bankruptcy Code, 2016 and controls the profession of indebtedness and bankruptcy. It undertakes the job of governing body for all Insolvency Resolution Professionals, Insolvency Professional Agencies and Information Utilities. It enacts regulations to deter
Jet Airways under insolvency - The National Company Law Tribunal on Thursday admitted lenders move for bankruptcy proceedings for Jet Airways. A consortium of 26 bankers led by State Bank had taken the grounded Jet Airways to the NCLT to recover their dues of over Rs 8,500 crore. The announcement came hours after stocks of the grounded airlines surged a whopping 146 per cent today in intra-day trading, leading to the Bombay Stock Exchange seeking clarification from the company. Jet Airways
Unable to close many insolvency cases successfully in 270 days has resulted in passing many Litmus tests by IBC. This has created a symbol of the dark storm and greater strikes over the Insolvency and Bankruptcy Code (IBC). Several causes are involved behind the missing of timelines according to the drafted IBC legislation report. Gaps were identified, resulting in operationalization in December 2016, motivating stakeholders to approach the National Company Law Tribunal (NCLT) frequently t
The regulator put forward some significant changes in the regulations of Insolvency Professionals. This proposal may require to acquire a Certificate of Practice for all Resolution Professionals, Liquidation, or Interim Resolution Professional that authorize the IPs practice. The Insolvency and Bankruptcy Board of India (IBBI) is of the idea that Certification of Practice will enhance supervising the IPs practice and help to avoid needless disciplinary proposal. According to the propos
The orders of Liquidation of debt-ridden pharmaceutical company Sterling Biotech by National Company Law Tribunal has created hindrance for its Lenders. The Lenders were expecting that they could easily withdraw the proceedings of insolvency and accept (OTS) One-time Settlement offered by the promoters. The (CoC) Committee of Creditors had permitted to the promoters One-Time Settlement offered by the majority of 90 percent. The other group company, such as Sterling SEZ, has also gone into
With the increase in bankruptcy and bad loans in India, companies are overburdened with fraud loans and the risk of insolvency. Industries also spend most of their time and effort in fixing macroeconomic risks. To resolve and restructure failing businesses, the Government introduced the Insolvency and Bankruptcy Code, 2016. The introduction of the law has given rise to insolvency professionals across the country, thus also generating employment for experienced professionals. The rise in aw
The Insolvency and Bankruptcy Board of India has recently released a charter which has been prepared with inputs from three difference insolvency professional agencies. The charter is not mandatory and is aimed at providing responsibilities as well as guidelines for Insolvency Resolution Professionals and Committee of Creditors (CoC). The charter is an effort to ensure that all stakeholders have a comprehensive understanding of the various aspects of their roles and responsibilities in a Corpo
Recently, Ms. Anju Agarwal, Director at ASC Group and head of Insolvency Services paneled a discussion held by INSOL India. An independent leadership body, INSOL India represents and brings together practitioners and associated professionals from the field of restructuring and insolvency.
Webinar: Bankers Perspective on Insolvency & Bankruptcy Code, 2016 Mr. Deepak Maini, Vice President under the Insolvency Services vertical presided over a webinar which presented the perspective of bankers on the Insolvency & Bankruptcy Code of 2016. The presentation answered persisting questions and brought in much clarity on the code. You can watch the video as well as take a look at the detailed presentation on the below link: CLICK HERE:
India ushered into a new bankruptcy regime in 2017 with the enactment of Insolvency and Bankruptcy Code 2016 (“Code”). The Code is currently going through initial stages of teething issues, which every law has to endure especially during the early phases.
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