Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
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. […]
Read moreImplications 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 […]
Read moreRelationship 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 […]
Read moreForensic 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 […]
Read moreGuide to the Role of NGOs in Insolvency Cases
All stakeholders, including NGOs in Insolvency Cases (non-governmental organizations), have an important role in insolvency matters. A non-profit or a charitable company is considered a section 8 company, incorporated under the Companies Act, 2013 that has defaulted the debt or payment of services availed by them to promote its objectives. When such a company faces […]
Read moreTraditional Insolvency Procedure vs Pre-Packaged Insolvency Resolution Process
Under insolvency law, the Insolvency Bankruptcy Code, 2016, offers two processes for resolving the insolvency of a company or individual: the traditional insolvency procedure and the pre-packaged insolvency resolution process. These processes, while both aimed at resolving financial distress, differ in approach. The traditional insolvency process is a formal court-driven method, typically used for complex […]
Read moreSection 33 of IBC – Insolvency and Bankruptcy Code
When a company is unable to meet its financial obligations and the Adjudicating Authority has decided that it must be wound up, the company will undergo liquidation proceedings in the Insolvency and Bankruptcy Code, 2016 (“the IBC”). The IBC provisions outline the process for initiating the liquidation of a corporate debtor under certain conditions, which […]
Read moreResponsibilities do Valuation Experts have in the IBC process
The core of the success of implementing insolvency laws is the concept of valuations. These Valuation Experts have an important role in determining the fair market of assets and liabilities during the corporate insolvency resolution process (CIRP) and are calculated and analysed by valuation experts. Overview of the IBC Process When the corporate debtor faces […]
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 the 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 companies in financial distress. However, the […]
Read moreHow to draft a resolution plan under IBC?
As per the resolution plan under IBC submitted by the insolvency professional, the Committee of Creditors and the Adjudicating Authority can decide whether the company is to be liquidated. Understanding the exact format of a resolution plan under IBC is crucial to ensuring the success of the resolution process, which may lead to the financially […]
Read moreGreen Insolvency and Sustainable Business Practices Explained
Financial struggles and environmental degradation are at the forefront of global concerns and introduced “green insolvency”. Traditionally, the resolution process focuses on financial considerations and ignores their effects on the environment. Therefore, green insolvency includes integrating environmental considerations and sustainability principles into the resolution process. The Need for Sustainability in Corporate Restructuring Business sustainability refers […]
Read moreSection 30 of IBC – Insolvency and Bankruptcy Code, 2016
Understanding Section 30 of IBC Section 30 of IBC deals with the submission of a resolution plan by resolution applicants, a potential investor, or a creditor aiming to revive a distressed company. This outlines how they manage the company’s debts and affairs if their plan is approved by the Committee of Creditors (CoC), ensuring all […]
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