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Raja Sharma

Business Advisor at Tranzission

social.rajasharma@gmail.com

100 Published Articles

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Professional articles and legislative updates

August 5th, 2026

The IBC: What You Need to Know (And What Goes Wrong)

The IBC has reshaped India's insolvency landscape. This practitioner's guide covers the framework, process, recent amendments, impact, and common pitfalls in the Insolvency and Bankruptcy Code (IBC).

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June 15th, 2026

Are Deep Haircuts Undermining the Purpose of the Code

A “Deep Haircuts” in insolvency resolution is the percentage of debt that creditors must write off or waive, representing the difference between the admitted claim and the actual amount recovered. Recent data show a steep average haircut of 67% for financial creditors under the Insolvency and Bankruptcy Code (IBC), with total recoveries hovering around 33% […]

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June 12th, 2026

Best book for insolvency professional exam

The Insolvency and Bankruptcy Code, 2016 (IBC) is one of India’s most dynamic pieces of legislation, frequently amended, broadly interpreted by courts, and applied to corporate insolvency resolution processes (CIRP), liquidation, personal insolvency, and so on. For the Insolvency Professionals (IP) aspirants, passing the Limited Insolvency Examination (LIE) requires more than just reading the bare […]

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June 8th, 2026

From NCLT to NCLAT and the Supreme Court: IBC Appeals Process Explained

Conflicting interests of creditors, debtors, and resolution professionals (RPs) over claims, valuation, and resolution plan approvals often give rise to disputes during insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The IBC offers a structured, tiered appellate process to contest decisions made by the National Company Law Tribunal (NCLT) in order to guarantee […]

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June 5th, 2026

IBBI Discussion Paper on Valuation under IBC: Key Proposals and Their Impact

Valuation is a key component of the Insolvency and Bankruptcy Code (IBC), ensuring that the value of a corporate debtor’s assets is maximized during the Corporate Insolvency Resolution Process (CIRP). It computes fair value—the estimated realizable value of assets under normal market conditions if the business continues as a going concern—and liquidation value, which reflects […]

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June 4th, 2026

How New Insolvency Changes Aim to Speed Up Resolution in India

The Insolvency and Bankruptcy Code of 2016 (IBC) was enacted to establish a time-bound, creditor-driven framework for resolving financial distress by replacing outdated and fragmented laws. Its primary goal is to ensure that insolvency cases are resolved quickly and within a strict timeline—initially 180 days, extendable up to 330 days—in order to prevent asset value […]

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June 2nd, 2026

Legal Status of Lien as a Security Interest under the IBC

Section 3(31) of the Insolvency and Bankruptcy Code, 2016 (IBC) defines a security interest as a right, title, interest, or claim to property created in favor of a secured creditor by a transaction that secures the payment or performance of an obligation. This covers any agreement that secures an obligation but expressly excludes performance guarantees, […]

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May 26th, 2026

Revival over Liquidation under the IBC

The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to establish a unified, time-bound framework for resolving insolvency and bankruptcy in India, replacing a fragmented system of out-of-date laws such as the Sick Industrial Companies (Special Provisions) Act of 1985. Its primary legislative goal was to transition from a debtor-in-possession model, in which promoters retained […]

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May 20th, 2026

Missed Claim Deadlines: Can Creditors Still Enforce Their Debt?

The Corporate Insolvency Resolution Process (CIRP) is a time-limited, creditor-driven mechanism under the Insolvency and Bankruptcy Code, 2016 (IBC) that aims to revive financially distressed corporate debtors or facilitate their orderly liquidation. To be considered in the resolution process, creditors must submit their claims within the time frame specified—14 days from the appointment of the […]

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April 17th, 2026

Repayment Plan Termination under Section 118 IBC

Personal insolvency and bankruptcy are primarily governed by Part III of the Insolvency and Bankruptcy Code, 2016 (IBC). This legal framework provides a structured approach for individuals unable to meet their debt obligations. A key mechanism for resolving individual financial distress without resorting to immediate bankruptcy is the repayment plna, which outlines a manageable strategy […]

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April 6th, 2026

Undervalued Transactions under IBC

Insolvency law defines an undervalued transaction as a transfer of assets by a corporate debtor for significantly less than their value or without consideration, which typically occurs prior to insolvency. Such transactions are scrutinized because they deplete the insolvency estate, reducing the amount of assets available to pay creditors. Under Section 45 of the Insolvency […]

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April 1st, 2026

Best Insolvency Professional course in India

With Corporate Insolvency Resolution Process (CIRP) filings under the Insolvency and Bankruptcy Code, 2016 (IBC) steadily increasing year after year, the demand for qualified Insolvency Professionals (IPs) has reached an all-time high. The IBBI Limited Insolvency Examination (LIE) is the mandatory first step into this space, but passing it is not as simple as it […]

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March 24th, 2026

How to file claim under IBC: practical steps including forms and proof of claim

Under the Insolvency and Bankruptcy Code, 2016 (IBC), timely and accurate claim filing in the corporate insolvency resolution process (CIRP) and liquidation is critical, as claims must be submitted with the timeline submitted in the public announcement or up to 90 days from the insolvency commencement date, whichever is later, to be considered by the […]

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March 20th, 2026

Liquidation Challenges in India under IBC Ground Realities & Case Studies

A notable shift has occurred in the application of the Insolvency and Bankruptcy Code, 2016 (IBC), moving the primary focus from resolution of distressed companies toward their eventual Liquidation Challenges in India. This is demonstrated by the growing body of statistics that highlight a significant rise in liquidation outcomes compared to successful resolutions, indicating a […]

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March 19th, 2026

Judicial View on Zero-Coupon Instruments & Section 7 IBC Maintainability

There is a growing use of structured financial instruments in corporate financing, raising questions about their treatment under the Insolvency and Bankruptcy Code, 2016 (IBC). A zero-instrument, which is issued at a discount with the full amount paid at maturity, has been the subject of litigation under the IBC to determine if defaults qualify as […]

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March 9th, 2026

Decree Holder’s Claim Under IBC

A decree holder is a person in whose favour a decree has been passed or an order capable of execution has been made. Decree Holder’s Claim Under IBC is recognised as a creditor, but their claim does not automatically qualify as a financial or operational debt, creating ambiguity in their status. The IBC imposes a […]

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February 23rd, 2026

Post-Resolution Challenges: Monitoring Implementation of an Approved Resolution Plan under the IBC

While approval of a resolution plan signals the formal conclusion of the insolvency process, it does not signify the end of the broader insolvency proceedings. The most significant challenges often emerge in the post-approval phase, focusing on the critical tasks of implementation, vigilant monitoring, regulatory compliance, and ultimately, ensuring the sustainable revival of the corporate […]

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February 19th, 2026

Treatment of Tax Dues under the Insolvency and Bankruptcy Code (IBC) Framework

Tax Dues under the IBC constitute a significant category of claims asserted during insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The enactment of the IBC fundamentally altered the landscape for recovery of these dues by prioritizing the efficient resolution and revival of distressed companies. This shift has frequently created tension between […]

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January 27th, 2026

The Uneasy Coexistence of PMLA and IBC

The Prevention of Money Laundering Act, 2002 (PMLA) is a penal statute designed to combat money laundering and the financing of terrorism, granting the Enforcement Directorate (ED) extensive powers to attach, seize, and confiscate assets derived from criminal activities including those deemed proceeds of crime. In contrast, the Insolvency and Bankruptcy Code, 2016 (IBC) is […]

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January 23rd, 2026

Criminal Law Meets Insolvency Law: Insights from Ashwini Mehra v. State of Odisha

The liquidator, appointed under Section 34 of the Insolvency and Bankruptcy Code, 2016 (IBC), assumes all powers of the corporate debtor’s board of directors and key managerial personnel upon receipt of a liquidation order, acting as a court officer to oversee the company’s orderly dissolution. The liquidator serves a quasi-judicial function, particularly in admitting or […]

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January 19th, 2026

Are small creditors losing out in insolvency cases?

In the insolvency framework “small creditors” are primary operational creditors, Micro, Small, or Medium Enterprises (MSMEs), individual suppliers, employees, etc. Unlike financial creditors under the Insolvency and Bankruptcy Code, 2016 (IBC) whose debt is based on the “time value of money” and is often secured, operational creditors are owed money for the goods and services […]

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January 8th, 2026

No Obligation to Collate Data from IRP Under RTI: IBBI

The Insolvency and Bankruptcy Board of India (IBBI), established on October 1, 2016, under the Insolvency and Bankruptcy Code, 2016 (IBC), is the regulatory authority responsible for overseeing India’s insolvency framework. It regulates insolvency professionals (IPs), agencies, and information utilities (IUs), ensuring compliance with the IBC through registration, monitoring, and enforcement of standards. The IBBI […]

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January 6th, 2026

Avoidance Transactions Under IBC

In September 2025, it was reported that applications seeking recovery of approximately ₹3.90 lakh crore in Avoidance Transactions Under IBC had been filed with the National Company Law Tribunal (NCLT). Despite the large amount claimed, reports indicate that only ₹7,516 crore had been successfully recovered by September 2025, from applications totaling ₹3.76 lakh crore. This […]

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December 30th, 2025

Conundrum of Center of main interest in Cross-Border Insolvency

Cross border insolvency occurs when a financially distressed company has assets, creditors, or legal proceedings in multiple countries, complicating the resolution process due to differing legal frameworks. As globalization drives businesses to operate internationally, such cases have become increasingly common, necessitating coordinated international mechanisms to ensure fair asset distribution and creditor protection. A key concept […]

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December 23rd, 2025

Interplay of Section 31 of IBC and Section 16 of CGST Act

The Insolvency and Bankruptcy Code (IBC), enacted in 2016, ensures to resolve the insolvency of corporate persons, partnership firms and individuals in a time bound manner. It also provides a “clean slate” for corporate debtors through Interplay of Section 31, extinguishing liabilities not included in an approved resolution plan. However, this principle conflicts with the […]

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December 11th, 2025

Secured Creditors in ‘Liquidation’: Companies Act 2013 vs. IBC vs. SARFAESI

During liquidation under the Insolvency and Bankruptcy Code, 2016 (IBC), secured creditors have the right to either relinquish their security interest to the liquidation estate or realize it independently, with the proceeds applied first to their debt, and any surplus paid to the liquidator. The objective of protecting creditor rights is to ensure fair and […]

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December 10th, 2025

Deciding the Fate A Legal Analysis of the Adjudicating Authority’s Role in CIRP Initiation

Role in CIRP Initiation is a legal mechanism under the Insolvency and Bankruptcy Code, 2016 (IBC), designed to resolve corporate insolvency by either restructuring the company or initiating liquidation. It can be initiated by a financial creditor, operational creditor, or corporate debtor itself upon a payment default, with the National Company Law Tribunal (NCLT) serving […]

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December 4th, 2025

High Court Imposes Exemplary Cost for Filing Winding-Up Plea with Malafide Intention

Under the Companies Act, 2013, a Cost for Filing Winding-Up petition is a legal process initiated by creditors, members, or other stakeholders to compel a company’s dissolution when it is unable to pay its debts or when it is just and equitable to do so, with the court appointing to manage the process. Concurrently, the […]

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November 10th, 2025

Section 93 CGST Act Special Provisions for Tax Liability

Section 93 CGST Act Special Provisions for Tax Liability, permits continuance of proceedings against legal heirs, but does not authorize culmination of proceedings against deceased person. This provision allocates liability for GST, interest, and penalties in cases of death, dissolution, partition, and trusts, especially when IBC applies. Statutory Overview Section 93 CGST Act plays a critical […]

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October 31st, 2025

Role and benefits of appointing a receiver of the receiver

The Insolvency and Bankruptcy Code, 2016 (“the IBC”) uses receivership as a strategic tool to manage a struggling company, aiming to secure assets, preserve their value, and facilitate a smoother resolution process. This involves appointing a resolution professional (RP) or liquidator, who takes control of the company’s assets and operations to stabilize their worth, and […]

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October 22nd, 2025

Penalty for Non-Compliance of Order

Section 72 of the Consumer Protection Act, 2019 (“the CPA”) deals with penalties for Non-Compliance of Order issued by the District, State, or National Consumer Disputes Redressal Commissions (NCDRC). It mandates imprisonment for a minimum of one month, extending up to 3 years, and/ or fine ranging from ₹25,000–₹1 lakh. The Consumer Commissions are empowered […]

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October 17th, 2025

Duties of Interim Resolution Professional

Once the insolvency process is initiated under the Insolvency and Bankruptcy Code, 2016 (“the IBC”), an interim resolution professional (IRP) is appointed who takes control of the corporate debtor’s assets, effectively replacing the existing management of the corporate debtor. They are responsible for safeguarding these assets and preventing any actions that could diminish their value.The […]

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October 16th, 2025

Punishment for Fraud Under Companies Act

Section 447 addresses the penalties for individuals found guilty of engaging in fraudulent activities related to a company’s affairs, including both imprisonment and fines. This section defines “Fraud Under Companies Act” broadly, encompassing acts, omissions, concealment, or abuse of position with intent to deceive or injure the company, its shareholders, creditors, or other shareholders. It […]

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October 13th, 2025

Section 34 of Arbitration Act

Chapter VII, Section 34 of Arbitration Act and Conciliation Act, 1996 provides the power to parties of arbitration to challenge the final arbitration award. It allows parties to seek judicial intervention to set aside the arbitration award and lays down specific grounds on the basis of which the final award can be set aside. This […]

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October 7th, 2025

Negotiating of Resolution Plan

Insolvency often involves a complex web of relationships between various stakeholders, including creditors, debtors, and potential investors. It provides a platform for these parties to openly communicate, understand each other’s interest, and collaboratively work towards resolution. Negotiating of Resolution Plan enables creditors and debtors to reach mutually beneficial agreements, such as structured payment plans or […]

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September 29th, 2025

Insolvency Petition Procedure in India

The Insolvency and Bankruptcy Code, 2016 (“the IBC”) is a crucial framework in India for resolving corporate defaults within a structured and time-bound manner. It aims to maximise asset value, promote entrepreneurship, and balance stakeholder interests. The IBC’s key strength lies in its time bound process, typically requiring completion of the Insolvency Petition Procedure within […]

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September 22nd, 2025

Compulsory Liquidation vs Voluntary Liquidation

The Insolvency and Bankruptcy Code, 2016 (the IBC) mentions two types of liquidation, namely, Compulsory Liquidation vs Voluntary Liquidation Understanding the difference between the two is crucial because it impacts how a company is dissolved and the consequences for directors, creditors, and the overall businesses. Voluntary liquidation is initiated by the company directors, allowing for […]

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September 15th, 2025

Learning from the Jet Airways Insolvency Process

The prolonged Jet Airways Insolvency Process, spanning several years, exposed delays in implementing resolution plans and the flaws within the Insolvency and Bankruptcy Code, 2016 (“the IBC”), in addition to the complexities of resolving large-scale corporate insolvencies, particularly in the aviation sector. The case exposed challenges in areas like cross-border asset management, adherence to resolution […]

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August 27th, 2025

Legal consequences of misrepresentation in insolvency petitions

Misrepresentation in insolvency petitions involves making false or misleading statements about the debtor’s financial information, debt obligations, or other relevant facts: Misstatement of Debt or Default: A party who intentionally omits or misrepresents information, particularly if it’s relevant to the case, can be deemed to have acted with unclean hands and is not entitled to […]

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August 26th, 2025

Common Misconceptions About the IBC

Common Misconceptions About the IBC often overshadow the true purpose of the Insolvency and Bankruptcy Code, 2016 (“the IBC”), which is a comprehensive law designed to address corporate insolvency. While it’s a powerful tool, several myths surround its effectiveness and implementation. It was enacted for companies, firms, or individuals that are unable to pay their […]

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August 16th, 2025

The Sure Shot Approach to Mastering the New LIE Syllabus

Introduction: Navigating the 2025 Syllabus & Cut-Off Date Rules 2025 brings a major shift to the LIE (Limited Insolvency Examination) syllabus. With regulatory updates, new compliance norms, and a redefined subject structure, candidates must adapt fast. The cut-off date rules are stricter than ever—meaning what you study must align with what’s applicable at the time of your exam. If […]

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August 8th, 2025

How insolvency law can foster investor confidence

Investor Expectations: Legal frameworks provide a structured process for debt recovery, business reorganisation, and asset distribution and significantly influence investment decisions during insolvency. These frameworks, including the Insolvency and Bankruptcy Code, 2016 (IBC), offer a predictable and enforceable system that enhances insolvency law can foster investor confidence, potentially encouraging investment in distressed companies. They assure […]

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August 6th, 2025

Resolving disputes over operational debt

Section 5(21) of the IBC defines “operational debt” as a claim arising from the provision of goods or services, including employment, disputes over operational debt dues payable to the government or a local authority. It essentially covers debt incurred in the normal course of business operations. Operational debt is distinct from financial debt, which involves […]

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August 5th, 2025

The Impact of IBC on Capital Markets in India

Introduced in 2016, the Insolvency and Bankruptcy Code, 2016 (IBC) aims to reduce the time taken for completing the insolvency process and address the issue of non-performing assets (NPAs). It provides a streamlined framework for resolving corporate insolvency, shifting power from the debtor to creditors, and facilitating faster asset recovery. This change has bolstered investor […]

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August 4th, 2025

How to Manage Supply Chain Insolvency Risks

Supply Chain Insolvency Risks refers to the probability that a supplier or customer within the chain will be unable to meet their financial obligations, potentially leading to a disruption or failure of the entire supply chain. This risk can manifest as a supplier’s inability to deliver on time, a customer’s failure to pay, or a […]

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July 23rd, 2025

Legal Remedies for Creditors Post-Liquidation

After Creditors Post-Liquidation generally have limited legal avenues for pursuing further remedies, but some exceptions and potential actions exist depending on the nature of the claim and the specifics of the liquidation process. This article looks into what rights or claims the creditors can make post-liquidation, and other options that may be available. Understanding the […]

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July 10th, 2025

Comparative Analysis of IBC and Insolvency Law UK

Explore a detailed analysis of IBC and Insolvency Law UK, comparing key provisions, legal procedures, and their impact on debt resolution and corporate restructuring. India’s Insolvency Framework: It was enacted in India to consolidate and streamline the existing framework for handling insolvency and bankruptcy proceedings. The IBC replaced several previously fragmented laws and introduced a […]

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July 8th, 2025

NCLT Journey from Admission to Withdrawal under IBC

To facilitate settlements and allow for the withdrawal of insolvency applications, even after they have been admitted, was introduced by the Insolvency and Bankruptcy (Second Amendment) Act, 2018. Under the Insolvency and Bankruptcy Code, 2016 (“the IBC”), admission to withdrawal is governed by Section 12A. The primary reason for this amendment was to address a […]

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June 10th, 2025

Can the RERA tribunal direct NCLT/IBBI?

The Real Estate (Regulation and Development) Act, 2016 (RERA) focuses on protecting homebuyers’ rights, while the National Company Law Tribunal (NCLT) and Insolvency and Bankruptcy Board of India (IBBI) deal with corporate insolvency and bankruptcy. There can be overlaps in real estate cases when promoters or developers default. This article delves into the relation of […]

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May 27th, 2025

Managing the Insolvency of Family Owned Businesses

Family-owned businesses are based on relational resources like trust, communication, and a shared vision of success among all members. It allows all members of the company to participate in important decisions and its growth. The Insolvency of Family Owned Businesses has several factors that are significantly different from other companies or firms. This article elaborates […]

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May 26th, 2025

Understanding Section 22 of RERA

Section 22 of RERA mandates that the RERA Authority’s Chairperson and Members be appointed based on specific professional qualifications and expertise. Its purpose is to ensure that individuals leading RERA have strong legal, financial, and regulatory knowledge to protect consumer rights and manage real estate disputes effectively. The Chairperson and other Members of the Authority […]

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May 11th, 2025

Role of Independent Valuation in Maintaining Stakeholder Trust

There are several stakeholders involved in the insolvency proceedings, the corporate debtor, its creditors, insolvency professionals, etc. When Role of Independent Valuation in stakeholders have confidence in the proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) is necessary for consistent, transparency communication, and demonstrating shared values is crucial for strong relationships. Building trust will […]

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May 7th, 2025

Summarising IBC Amendments of 2024

The Insolvency and Bankruptcy Code, 2016 (IBC) aims to replace the patchwork of previous insolvency laws with a single, unified framework. Since 2016, Summarising IBC Amendments of 2024 and its rules or regulations primarily focused on streamlining processes, particularly in liquidation, increasing accountability, and addressing issues related to financial service providers (FSPs) and insolvency professional […]

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May 4th, 2025

Bankruptcy Under IBC: Advantages and Disadvantages

Individuals and businesses facing financial distress need to make a well-informed decision of whether to undergo bankruptcy proceedings under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the IBC”). Knowing the potential Bankruptcy Under IBC Advantages and Disadvantages is important to understand whether it is the right option for you. What Is Bankruptcy? […]

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May 4th, 2025

Role of ESG in Corporate Governance

Companies are now evaluated on their environmental impact, social responsibility, and governance practices, and not just their financial performance. Therefore, they are facing pressure from investors to improve these factors, leading to increased focus on sustainability initiatives, reporting, and transparency to attract capital. In India, there is a need for detailed mechanisms specifically on ESG […]

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May 4th, 2025

Key Challenges in CIRP for Infrastructure Sectors

The issue of economic downturns that impact the financial situation of different industries, such as construction companies, cannot be ignored due to their contribution to the overall economy in India. Their delayed payments severely affect the cash flow disruptions, particularly in large corporations. The current insolvency framework in India may not address the distinctive obstacles […]

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May 4th, 2025

What you need to know about insolvency and the healthcare sector

Insolvency leads to insolvency proceedings under the Insolvency and Bankruptcy, Code, 2016, and legal action is taken against the insolvent person or entity. For the insolvency and the healthcare sectorcauses many issues other than financial and legal challenges. Knowing about insolvency allows stakeholders to identify early warning signs, implement restructuring strategies, and protect patient access […]

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May 4th, 2025

Role of the CoC in CIRP Sector-Specific Insolvency Cases

Sector-specific insolvency cases are needed to address the unique characteristics of different industries, aspects that the Insolvency and Bankruptcy Code, 2016 (IBC) may not address. The Committee of Creditors’ (CoC) decision is crucial in forming the resolution plans that either revive the corporate debtor is liquidate them. Thereby, the CoC in CIRP decisions on sector-specific […]

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May 4th, 2025

What is the purpose of AFA for Insolvency professionals?

Having an authorisation of assignment (AFA) is a crucial requirement for insolvency professionals (IPs) to accept assignments as interim resolution professionals, resolution professionals, liquidators, bankruptcy trustees, or any other role under the Insolvency and Bankruptcy Code, 2016 (IBC). Without a valid AFA for Insolvency professionals, an IP cannot accept assignments at any stage of the […]

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May 4th, 2025

Section 7 of IBC – Insolvency and Bankruptcy Code

The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution process of corporate persons, partnership firms, and individuals in a time-bound manner. To initiate the insolvency process under the Section 7 of IBC , the applicants should clearly understand their debt, to be defined […]

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May 4th, 2025

Link between section 230 of the Companies Act and IBC

Link between section 230 of the Companies Act and IBC are important legislations that have a bearing on insolvency, restructuring, and other matters. Although the aims of both are different in their scope and processes, they are similar in their end goal, to restructure companies and avoid bankruptcy while balancing the interests of all stakeholders. […]

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May 4th, 2025

Supreme Court’s Take on Personal Insolvency in IBC

The Supreme Court’s take on personal insolvency in IBC has brought significant focus on the role of personal guarantors in insolvency law. A personal guarantor, by promising to repay corporate debts, faces substantial liabilities if corporate debtors default, putting their personal assets at risk. This interpretation under IBC highlights potential disadvantages for guarantors and raises […]

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May 4th, 2025

Balancing environmental claims during CIRP

Insolvency and restructuring procedures involves financial considerations in addition to the legal proceedings and costs. But environmental sustainability require more than just financial backing as it affects general public as well. Environmental claims are proceesed under the corporate insolvency resolution process, but they are difficult to be part of insolvency proceedings as they are unliquidited […]

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May 4th, 2025

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Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

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May 4th, 2025

How do international insolvency laws affect local practices?

To have a better understanding of cross-border insolvency law, it is important to compare the insolvency laws of other countries with those of India and examine current legislation on cross-border insolvency. International insolvency laws affect local practices, especially for financially distressed companies with assets outside India’s jurisdiction, as the current IBC and relevant regulations provide […]

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May 4th, 2025

Company Liquidation Process in India Under IBC

Liquidation essentially means that the revival or restructuring of the company was unsuccessful. The Company Liquidation Process is the final step of the insolvency process under the Insolvency and Bankruptcy Code, 2016 (IBC). Under IBC and the relevant regulations, there is a systematic manner in handling the process of company liquidation What is liquidation of […]

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May 4th, 2025

Limiting the Jurisdiction of NCLT under Section 60(5)

All insolvency cases involve several legal issues, such as restructuring of the company, asset distribution, debt recovery, etc. The jurisdiction of the Adjudicating Authority, the National Company Law Tribunal NCLT under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC). These matters may require that one case be present before different courts, leading to […]

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May 4th, 2025

Role of DIP Financing in Insolvency

Companies face financial distress because of several factors, such as economic downturns, poor budgeting, poor cash flow management, and legal disputes. The United States involves a concept where distressed companies can secure the necessary funds to continue their business operations during the bankruptcy process, known as DIP Financing in Insolvency. This article delves into this […]

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May 4th, 2025

Receivership vs Liquidation: What’s the Difference?

When the resolution process fails, the insolvency framework in India mandates that the company’s assets be liquidated. Receivership vs Liquidation are two processes for addressing financially distressed companies. This article delves into the distinctions between the Receivership vs Liquidation What Is Liquidation? The Insolvency and Bankruptcy Code, 2016 (IBC) does not define “liquidation”. According to […]

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May 4th, 2025

Application of IBC in the Power Industry

When a power company is financially distressed, its creditors can initiate an insolvency resolution process where IBC in the Power Industry play important role, to either restructure the debt or find a new investor to take over the project. This framework facilitates a more streamlined approach to managing financial difficulties within the power sector, which […]

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May 4th, 2025

How Legislative Amendments are Shaping IBC

The Insolvency and Bankruptcy Code, 2016 (IBC) has been amended multiple times to improve the process of insolvency resolution and liquidation. These Amendments are Shaping IBC have been made by the government the insolvency and the Insolvency and Bankruptcy Board of India (IBBI) to make the resolution process more efficient and ensure that creditors receive […]

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May 4th, 2025

The Doctrine of Clean Hands in Insolvency Law

Insolvency law is significantly impacted by the parties involved in the insolvency proceedings. Unfortunately, certain stakeholders may misuse the insolvency framework to benefit themselves. To prevent the abuse of insolvency law there is the doctrine of Clean Hands in Insolvency Law. By applying this doctrine, courts can prevent individuals from using insolvency laws to gain […]

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May 4th, 2025

7 Difference Between Financial Debt and Operational Debt

Understanding the insolvency process under the Insolvency and Bankruptcy Code, 2016, it’s crucial to grasp the difference between financial debt and operational debt. The core distinction lies in the nature of the debt, which determines the rights, roles, and responsibilities of the creditors. Financial creditors hold a significant influence, particularly in corporate insolvency resolution and […]

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May 4th, 2025

Who can initiate corporate insolvency resolution process

The ccorporate insolvency resolution process profession is a mechanism under the Insolvency and Bankruptcy Code, 2016 (IBC) for company’s who are facing financial distress to either revive, rehabilitate, or resolve their situation. This includes the involvement of the corporate debtor’s creditors, insolvency professionals, and the Adjudicating Authority, which is the National Company Law Tribunal (NCLT), […]

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May 4th, 2025

Role of Special Economic Zones in the Insolvency Process

A company operating within a Special Economic Zone (SEZ) faces financial distress and enters insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The link between SEZ and the IBC is based on the overriding effect over other legislations, including the Special Economic Zones Act, 2005 (SEZ Act). The IBC is considered the primary […]

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May 4th, 2025

NCLT filing SOP- Pre-Requisite for E-filing Matters in NCLT

The National Company Law Tribunal (NCLT) issued an order dated 22.12.2023, directing all litigants, advocates, or parties to follow the pre-requisite outline on formatting, proper book marking of Petition/Applications/Pleadings/Documents, electronic signature using e-Sign, retention of originals etc. at time of E-filing Matters in NCLT portal https://efiling.nclt.gov.in, which came into effect on 01.01.2024. It mentions mandatory […]

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May 4th, 2025

Understanding the Interplay between Insolvency Law and Contract Law

When a party to a contract becomes insolvent, it significantly impacts their ability to fulfill their contractual obligations potentially leading to disputes over contract performance, termination rights, and the overall legal framework of the agreement. It creates a complex situation where the solvent party may face uncertainty regarding their contractual rights and potential losses due […]

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May 4th, 2025

Insolvency Challenges in E-Commerce Sector

Insolvency is a state of financial distress in which a person or business is unable to pay their debts. A company can become insolvent due to a number of situations that lead to poor cash flow. When Insolvency Challenges in E-Commerce they cannot fulfull customer orders, potential legal issues with creditors, and loss of jobs […]

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May 4th, 2025

Addressing the Issue of Delay in Insolvency and Bankruptcy Law

The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate debtors in a time-bound manner for the maximisation of the value of assets of such debtors. Its primary function is to provide a solution to the companies in financial distress. However, there […]

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May 4th, 2025

How to file an insolvency petition

One may face ‘insolvency’ when they are unable to pay debts due to a lack of cash flow. It is a situation where the assets of an individual or a corporate entity do not meet its liabilities and have to repay its creditors. An individual or a corporate entity files an insolvency petition to initiate the […]

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May 4th, 2025

How to ensure fairness and transparency during CIRP?

The Insolvency and Bankruptcy Code, 2016 (IBC) establishes a time-bound process that ensures fairness and transparency during CIRP in the insolvency process. It is the responsibility of insolvency professionals and the Adjudicating Authorities to ensure fairness and transparency during the corporate insolvency resolution process (CIRP) in the IBC. This allows for a level playing field […]

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May 4th, 2025

How IBC Promotes Entrepreneurship

The goal of IBC Promotes Entrepreneurship by establishing a transparent and time-bound process for resolving distressed businesses. The streamlined process under the IBC can increase lenders’ confidence in providing credit to new businesses, as they have a clearer understanding of the potential recovery mechanisms in case of default. Let’s look into this in more detail. […]

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May 4th, 2025

Implications of Public Policy in the Insolvency Process

With the increase in international trade and globalisation, it is imperative to have a well-structured cross-border legal framework for cooperative resolution of insolvency-related disputes is a necessity. In India, the insolvency framework is designed to protect stakeholders, encourage economic recovery, and shape how insolvency is managed and resolved. This article explores the role of Public […]

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May 4th, 2025

Relationship between insolvency law and credit ratings

Insolvency laws aim to provide a framework for dealing with situations when an individual or company is unable to pay their debts as they become due. It ensures fair and equitable treatment of creditors and potentially allows for the recovery of assets. The framework helps to ensure that creditors can recover their dues, reducing the […]

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May 4th, 2025

Forensic Audit in the Insolvency and Bankruptcy Code, 2016

The insolvency process is designed to streamline the insolvency and liquidation proceedings in a time-bound manner. The resolution professional utilise forensic audit to ensure the insolvency or liquidation proceedings are fair and transparency, identifying any transactions by the corporate debtor that may affect the recovery of its creditors. What is a Forensic Audit? A forensic […]

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February 17th, 2025

Debt Assignment During Pending CIRP Application

The Insolvency and Bankruptcy Code, 2016 (IBC) explains a time-bound mechanism to resolve the insolvency of a corporate debtor by reviving, rehabilitating, or restructuring in a time-bound manner known as the corporate insolvency resolution process (CIRP). In financial markets, debt assignment refers to the transfer of a debt obligation from one party, the assignor, to […]

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September 2nd, 2024

What are the ethical considerations in insolvency practice?

In every field, a code of conduct must be followed, including by insolvency practitioners in the domain of insolvency law. The code of conduct for insolvency practitioners is outlined under the Insolvency and Bankruptcy Code, 2016, along with relevant regulations. Ethical considerations in insolvency practice must be adhered to throughout the insolvency process, ensuring fair […]

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August 20th, 2024

Guarantor’s Payment Can’t Protect Debtors from CIRP

The Supreme Court of India recently delivered a landmark judgment in the case of BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. & Anr, making it clear that a guarantor’s payment can’t Protect Debtors from CIRP. This ruling sets a precedent that part payments by guarantors do not absolve debtors of their full debt […]

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August 20th, 2024

NCLAT Upholds Appeal in Insolvency Case Despite Delays

The NCLAT Upholds Appeal in Insolvency Case recently issued a significant decision in the case of Innovators Cleantech Pvt. Ltd. versus Pasari Multi Projects Pvt. Ltd. In this ruling, NCLAT upheld the appeal in the insolvency case despite several procedural and substantive issues, including delays in filing the appeal and the condonation of delay. The […]

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August 19th, 2024

IBBI Suspends Insolvency Professional for 2 Years

In a strong regulatory move, the IBBI Suspends Insolvency Professional for 2 Years This severe measure follows the failure of IP to properly manage the insolvency resolution of UM Green Lighting Private Limited, showing the commitment of the Regulator to maintaining high standards in the insolvency process. Background of the Case The issues started when […]

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July 17th, 2024

10 Key Considerations for Insolvency Professionals When Filing a Report Under Section 99 of the Code

When preparing reports under Section 99 of the IBC, Insolvency Professionals must adhere to crucial guidelines. These guidelines are critical to avoid significant compliance repercussions, recognizing the heavy responsibility vested in IPs by lawmakers. A thorough, factually complete report is necessary, as it not only aids the court and conserves judicial time but also underpins […]

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July 16th, 2024

10 Key Considerations for Insolvency Professionals When Filing a Report Under Section 99 of the Code

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July 14th, 2024

Effective Management of Personal Insolvency

Do’s and Don’ts for Resolution Professionals Filing Application under Section 95 of IBC Do’s 1. Ensure Accurate and Complete Facts: a. Do state all facts correctly and based on documentary evidence when filing an application on behalf of any creditor under Section 95. b. Do take an undertaking from the creditor that no information has been withheld […]

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July 13th, 2024

Essential Websites for Insolvency Professionals in India

Insolvency Professionals in India play a crucial role in resolving distressed assets and reviving financially troubled entities. Staying updated with the latest legal developments, regulatory changes, and industry best practices is essential for their success. Here is a comprehensive guide to the most important websites that IPs should visit regularly. 1. Insolvency and Bankruptcy Board […]

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July 2nd, 2024

Beyond a Uniform Solution: Detailed Analysis of IBBI’s CIRP Regulation Amendment Proposals – Part 2

Introduction The discussion paper, issued by the Insolvency and Bankruptcy Board of India (IBBI) on June 19, 2024, seeks comments on four proposed amendments to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This article analyses IBBI’s second proposal to amend CIRP Regulations relating to the appointment of […]

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June 23rd, 2024

Proposed Amendments to IBBI Regulations: An In-Depth Analysis and Recommendations

Introduction The Insolvency and Bankruptcy Board of India (IBBI) has recently issued a discussion paper on proposed amendments to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This paper, dated June 19, 2024, aims to solicit feedback on several key issues related to valuation, representation, and the treatment […]

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June 4th, 2024

Identifying Legal Gaps in the IBC (Part 2): Insolvency Professionals Cannot Function as Resolution Professionals or Bankruptcy Trustees

The significant legal gap in the Code gives personal guarantors the means to challenge the roles of insolvency professionals as Resolution Professionals or Bankruptcy Trustees under Part III of the Insolvency and Bankruptcy Code, 2016 (IBC). This critical issue demands immediate attention from the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of […]

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June 4th, 2024

Subjectivity vs. Procedural Integrity: A Critique of the NCLT Order in Indiabulls Housing Finance Ltd. Vs. Dr. Subhash Chandra

On May 27, 2024, the National Company Law Tribunal (NCLT) issued a significant order in the case of Indiabulls Housing Finance Ltd. Vs. Dr. Subhash Chandra, where the Tribunal decided to replace the Resolution Professional, Mr. Raj Kamal Saraogi, with Mr. Shiv Nandan Sharma. While the order aimed to uphold the integrity of the Insolvency […]

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June 2nd, 2024

Identifying Legal Gaps in the IBC (Part 1): Initiating Insolvency and Bankruptcy for Individuals and Partnerships

Introduction There exists a prevalent misapprehension regarding the scope of Part III of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”), which pertains to the insolvency and bankruptcy of individuals and partnership firms. It is commonly believed that Part III has been operational solely for individuals acting as personal guarantors to corporate […]

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May 13th, 2024

Duties of an Insolvency Professional

In the rapidly changing landscape of modernization and technology, many companies face challenges related to their financial stability. An Insolvency Professional is crucial in managing these challenges under the Insolvency and Bankruptcy Code (IBC) of 2016 in India. Their primary focus is on the revival and restructuring of financially distressed companies. This blog explores the […]

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