Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
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 […]
Read moreHow 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 […]
Read moreThe 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 […]
Read more7 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 […]
Read moreWho 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), […]
Read moreRole 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 […]
Read moreNCLT 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 […]
Read moreUnderstanding 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 […]
Read moreInsolvency 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 […]
Read moreAddressing 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 […]
Read moreHow 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 […]
Read moreHow 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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