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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 […]
Read moreAdapting insolvency laws for the digital economy
The Insolvency and Bankruptcy Code, 2016 (IBC) aims to consolidate and streamline insolvency proceedings, creating a unified framework for resolving corporate insolvency. While the IBC is a comprehensive law, it has also been acknowledged to have limitations, and ongoing efforts are being made to improve its efficiency and effectiveness, particularly in the context of the […]
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What you need to know about the MCA in Insolvency Law
The Ministry of Corporate Affairs (MCA in Insolvency Law) plays a key role in India’s insolvency and bankruptcy framework, primarily through its oversight of the Insolvency and Bankruptcy Board of India (IBBI) and the Insolvency and Bankruptcy Code, 2016 (IBC). The MCA is responsible for formulating and implementing policies related to insolvency resolution, including the […]
Read moreRecord Maintenance and Reporting Standards in CIRP
Record retention and Reporting Standards in CIRP (corporate insolvency resolution process ) to ensure transparency, accountability, and facilitate the resolution of disputes. It provides a comprehensive record of the CIRP, including the interim resolution professional’s (IRP) or resolution professional’s (RP) actions, creditor information, and other relevant documents. This important documentation is essential for audits, litigation, […]
Read moreCross-claims and Set-offs in the insolvency process
Set off is a right that allows a debtor to reduce or discharge a debt they owe to another party by offsetting a debt that the other party owes to them. In simpler terms, it is a mutual cancellation of debts. The Code of Civil Procedure recognises legal and equitable Set-offs in the insolvency process […]
Read moreThe Role of Parliament in Refining IBC Framework
The Parliament in Refining IBC, the main law governing insolvency and bankruptcy proceedings in India, in 2016. This means that the Parliament is the body that created the legal framework for the IBC. It was passed to address inefficiencies in existing laws and objectives of time-bound resolution, asset value maximization, and entrepreneurship promotion. The IBC […]
Read moreComparative 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 […]
Read moreAssessment of Social Impact in Insolvency Cases
Social Impact in Insolvency Cases is a process of evaluating and managing the social consequences of a company’s insolvency or bankruptcy. It helps understand the ripple effects on employees, families, communities, and other stakeholders. Thus, it ensures a more comprehensive approach to insolvency resolution. In insolvency cases, SIA helps to ensure that the resolution process […]
Read moreNCLT 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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Resolving the Conundrum Surrounding Applicability of Moratorium
The primary objective of the Insolvency and Bankruptcy Code, 2016 (“the IBC”) is to resolve the financial issues of the corporate debtor in a timely manner so as to maximise the value of its assets. To do so, once the insolvency process is initiated under the IBC, a “ Applicability of Moratorium” is declared under […]
Read moreScrutinizing the Status of Settlement Agreements Under the IBC
Settlement Agreements Under the IBC are generally recognised and enforceable. Breaching a settlement agreement can have consequences, and the specific remedies available depend on whether the breach occurred before or after the initiation of the corporate insolvency resolution process (CIRP). This article looks into the status of settlement agreements under the IBC in detail. Legal […]
Read moreNCLAT Verdict Interplay Between Arbitration and Insolvency
The National Company Law Appellate Tribunal (NCLAT), Chennai Bench in KK Ropeways Limited v. Billion Smiles Hospitality has significant implications for the Interplay Between Arbitration and Insolvency. The central question addressed by the NCLAT was whether a petition filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (“the IBC”) for the implementation of […]
Read moreSupreme Court Rulings on Insolvency Cases
Competition law and insolvency law are intertwined. Competition law ensures fair market practices during insolvency proceedings, preventing anti-competitive outcomes. Insolvency law prioritises reviving financially distressed companies, while competition law aims to prevent market distortions. This involves scrutinizing resolution plans to ensure they do not lead to anticompetitive arrangements, such as debt settlements or joint ventures, […]
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Preserving the IBC’s rationale: The Tussle with the Benami Act
Bankruptcy Code, 2016 (“the IBC”) are distinct laws that can intersect in situations involving benami property transactions within the context of insolvency proceedings. While there is no inherent conflict, the IBC’s moratorium provisions can potentially impact such attachments made under the Tussle with the Benami Act, and the liquidator has the authority to include benami […]
Read moreIBC Overrides Electricity Act: Capturing the Fallacy in Rainbow Papers
On 17th July, 2023, the Hon’ble Supreme Court delivered its judgment in Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Pvt. Ltd., establishing that the Insolvency and Bankruptcy Code, 2016 (“the IBC”) takes precedence over the Electricity Act, 2003 (“the Electricity Act”). This means that secured creditors, including those with claims under the IBC Overrides […]
Read moreOrdinary Course of Business Defence under the IBC
Section 43 of the Defence under the IBC: Section 43(2) defines a transaction as preferential if it involves the transfer of property or an interest thereof by the corporate debtor for the benefit of a creditor, surety, or guarantor on account of an antecedent financial debt or operational debt, placing them in a more favorable […]
Read moreAdmission of Corporate Insolvency a Norm, Rejection an Exception
The Insolvency and Bankruptcy Code, 2016 (“the IBC”) aims to facilitate the Admission of Corporate Insolvencyy, and the initiation of the process is intended to be the standard course of action when a default has occurred. The Adjudicating Authority, the National Company Law Tribunal (NCLT) considers various factors when deciding whether to accept or reject […]
Read moreClean Slate Theory under the Insolvency & Bankruptcy Code
The corporate insolvency resolution process (CIRP) has been initiated under the Insolvency and Bankruptcy Code, 2016 (“the IBC”), and numerous resolution plans are invited and deliberated upon before a final plan is selected. The clean slate theory means that once a resolution plan is approved, all pre-existing the corporate debtor are extinguished, thus allowing the […]
Read moreWhat is rebidding in the resolution process?
Stressed assets refer to loans or debts where the borrower is struggling to repay, potentially leading to non-performing assets (NPAs) and posing risks to the financial system. Rebidding in the resolution process bid for such assets to acquire businesses at discounted valuations or restructure operations for revival. Role of Bidding in CIRP: In the corporate […]
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Navigating the Data Integration Conundrum
The insolvency resolution process in the liquidation process under the Insolvency and Bankruptcy Code, 2016 (“the IBC”) and the relevant rules and regulations involve the submission and analysis of numerous documents and financial information. However, several Data Integration Conundrum issues within the insolvency framework in India hinder the efficient and timely resolution of cases. The […]
Read moreAdvancing the Objectives of IBC
To advance the Objectives of IBC (Insolvency and Bankruptcy Code, 2016 ) India needs to focus on streamlining the resolution process, promoting entrepreneurship, ensuring fair treatment of all stakeholders, and strengthening the regulatory framework, while also addressing challenges like delays and incentives. Understanding the Section 14 Moratoriums Section 14 of the Objectives of IBC establishes […]
Read moreWhat is Form G in IBC – Invitation for Expression of Interest
Form G in IBC is an official public advertisement inviting potential resolution applicants to submit an Expression of Interest (EOI). It is issued by the Resolution Professional (RP) to ensure a fair and competitive bidding process. It is, thus, a crucial step before the submission of resolution plans. Form G in IBC is primarily governed […]
Read moreSection 61 of IBC – Insolvency and Bankruptcy Code, 2016
Section 61 of IBC states that any person aggrieved by an order of the National Company Law Tribunal (NCLT) may prefer an appeal to the National Company Law Appellate Tribunal (NCLAT). The appeal must be filed within 30 days from the date of the NCLT order, and the NCLAT may extend the filing period by […]
Read moreRights of secured creditors in relation to repayment plan
The Insolvency and Bankruptcy Code, 2016 (“the IBC”) offers a comprehensive framework to deal with the challenges of insolvency and liquidation. The primary goal of the IBC is to achieve a balanced interest between the parties that are participating in the bankruptcy resolution process and Rights of secured creditors. In the process of liquidation, those […]
Read moreCan 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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What is the difference between a margin call and liquidation ?
Learn the key differences between a margin call and liquidation in trading — how they work, why they happen, and what they mean for your investments. Definition of a Margin Call: A margin call occurs when a trader’s account falls below the minimum required margin, such as maintenance margin, and the broker demands additional funds […]
Read moreInterim Measures Ordered by Arbitral Tribunal
What Are Interim Measures in Arbitration? Interim measures are temporary reliefs granted by an arbitral tribunal or a court to protect the rights of parties before the final award is delivered. These measures can include orders to maintain the status quo, preserve assets, protect evidence, or require a party to post security for costs. The […]
Read moreRecovery of Debts and Bankruptcy Act, 1993 – Bare Act
Banks and financial institutions also need a mechanism to recover debts efficiently, which the Recovery of Debts and Bankruptcy Act, 1993 (“the RDBA”) provides. It also offers borrowers a framework for resolving debt issues, although ti can also lead to stricter enforcement of debt obligations. Therefore, the RDBA is crucial for the stability of the […]
Read moreTransfer of Property Act, 1882 – Section-Wise Bare Act
The Transfer of Property Act of 1882 (hereon forward known as “the Act”) is a key Indian law that regulates the transfer of property, both movable and immovable. It mainly focuses on immovable property and ensures transparency, protects parties involved, and regulates legal formalities in property transactions. It covers various types of property transfers, including […]
Read moreSection 11 of IBC – Persons Not Entitled to Make Application
Section 11 of IBC deals with ‘Persons not entitled to make an application’. This provision restricts who can initiate a Corporate Insolvency Resolution Process (CIRP), preventing a corporate debtor undergoing or recently having completed CIRP, or one who has violated a resolution plan, from initiating a new one. What is the purpose of Section 11 […]
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IBC Section 30 – Submission of Resolution Plan
The Insolvency and Bankruptcy Code, 2016 (IBC) ensures that a financially distressed company can be revived, restructured, or rehabilitated, while also focusing on maximizing the value of the corporate debtor’s assets. It essentially provides a mechanism to resolve the corporate debtor’s insolvency and its inability to clear off creditor debts. There are many stakeholders involved […]
Read moreAdjudicating Authority for Corporate Persons
What is an Adjudicating Authority Under IBC? The Adjudicating Authority under the IBC is responsible for handling insolvency and liquidation proceedings for corporate persons, including companies and limited liability partnerships (LLPs). It ensures that insolvency cases are conducted as per the provisions of the IBC while protecting the interests of all stakeholders. Designation of NCLT […]
Read moreSection 31 of RERA – Filing of Complaints with the Authority or Adjudicating Officer
The Real Estate (Regulation and Development) Act, 2016 (hereon forward known as “Section 31 of RERA”) provides a platform to file complaints and seek redressal for issues with developers, ensuring transparency and accountability in the real estate sector. It primarily aims to reduce project delays by ensuring developers adhere to timelines and provide timely updates […]
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Section 4 of Negotiable Instruments Act
When a company or individual becomes insolvent, when they cannot meet their financial obligations, they enter insolvency proceedings. Creditors have to file their claims with the Adjudicating Authority, the National Company Law Tribunal (NCLT). These claims, including those based on promissory notes, are then assessed and ranked according to their priority for payment. Promissory notes […]
Read moreManaging 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 […]
Read moreUnderstanding 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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Section 104 – Preparation of List of Creditors
Section 104 of Committee of Creditors (CoC), comprising of financial creditors, plays a vital role in the resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC). The list of creditors is essential for forming this committee, as it determines who has the right to participate in decision-making and voting on the resolution plan. Essentially […]
Read moreSection 148 of negotiable instrument act
Section 148 of negotiable instrument act, of 1881 (NI Act) addresses the situation where someone appeals a conviction under section 138: Overview of Section 148: Section 148 of negotiable instrument act was introduced through the Negotiable Instruments (Amendment) Act, 2018 and empowers the Appellate Court to direct the convicted person to deposit up to […]
Read moreCIRP Regulation 39D of IBBI Regulations, 2016
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereon forward known as “the CIRP Regulations”) and the Insolvency and Bankruptcy Code, 2016 (“ the IBC”) outline the process for resolving corporate insolvency. When the resolution plans are not successful, the process goes to liquidation. The Adjudicating Authority then […]
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Impact of Sustainability on Business Recovery
Nowadays businesses must be more mindful of the impact they have on the environment, society, and the economy. The concept of ‘Sustainability on Business Recovery’ is not limited to reporting compliance, but also extends to the resilience of the business. Hence, businesses that prioritise Sustainability on Business Recovery can enhance its reputation and build trust […]
Read moreRole of IBC in SME Restructuring
The Insolvency and Bankruptcy Code, 2016 (IBC) provides a comprehensive framework for resolving the financial struggles of companies. Micro, Small, and Medium Enterprises (MSMEs) have unique challenges when facing financial distress which can be addressed under the IBC in SME Restructuring. There are specific provisions tailored for the resolution process of MSMEs. This article explores […]
Read moreReplacement of a Liquidator under the IBC
As per the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2016, the IBBI introduced an amendment which allowed the Stakeholders’ Consultation Committee (SCC) to propose the Replacement of a Liquidator and file an application with the Adjudicating Authority, the National Company Law Tribunal (NCLT). Legal Framework for Liquidator Replacement Under IBC […]
Read moreRole of NBFCs in the Insolvency Process
Non-Banking Financial Companies (NBFCs) are financial institutions that provide financial services like lending, leasing, and insurance, but they do not have a full banking license. They operate without the full regulatory oversight of a bank, offering a range of financial products and services similar to banks but without accepting deposits from the general public. Similar […]
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The Role of the Monitoring Committee
The Insolvency and Bankruptcy Board of India (IBBI) had on 19th November 2024 issued a discussion paper on the Role of the Monitoring Committee under CIRP. highlighting the need to strengthen the regulatory framework governing Role of the Monitoring Committee under the Insolvency and Bankruptcy Code, 2016 (IBC). This paper elaborated on the duties and […]
Read moreRole 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 […]
Read moreSummarising 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 […]
Read moreHow to Become an Insolvency Professional
Become an Insolvency Professional in India is a structured and rigorous process, involving several steps that test the candidate’s knowledge, ethical standards, and practical abilities. This document provides a comprehensive guide on how to navigate these steps and establish a career as a certified insolvency professional. Who is an Insolvency Professional? IPs are experts who […]
Read more10 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 […]
Read moreEffective 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 […]
Read moreEssential 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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