Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
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 […]
Read moreWhat 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 […]
Read moreSection 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 […]
Read moreLink 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. […]
Read moreSupreme 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 […]
Read moreBalancing 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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Read moreHow 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 […]
Read moreCompany 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 […]
Read moreLimiting 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 […]
Read moreRole 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 […]
Read moreReceivership 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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