Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
Section 8 Notice Does Not Extend Limitation for IBC Section 9
Following a payment default on an operational debt, an operational creditor may initiate the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016. A mandatory demand notice under Section 8 must first be served on the corporate debtor, requiring payment or notice of a dispute within ten days; failure […]
Read moreRevival 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a unified, time-bound framework for resolving insolvency and bankruptcy in India, replacing a fragmented system of out-of-date laws such as the Sick Industrial Companies (Special Provisions) Act of 1985.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 […]
Read moreMissed 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 […]
Read moreStep-by-Step Guide to Checking Corporate Insolvency Status Under IBC
Dealing with companies in Corporate Insolvency Resolution Process (CIRP) or liquidation carries a significant risk because their assets are protected by a moratorium, and any attempt to enforce contracts or recover debts may be restricted or invalidated. Due diligence is required before entering into contracts, making investments, or extending credit to assess a company’s financial […]
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What Are Statutory Dues Under IBC? Meaning, Treatment, and Priority
Statutory dues are liabilities payable to the Central Government, State Governments, and statutory or local agencies, such as taxes, levies, and other charges imposed by law. These debts are defined as operational debt under Section 5(21) of the Insolvency and Bankruptcy Code, 2016 (IBC), which means they are incurred when the corporate debtor is conducting […]
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Mandatory Beneficial Ownership Disclosure Added to Resolution Plans
There is a growing regulatory concentration on improving transparency in the Corporate Insolvency Resolution Process (CIRP), which is critical to maintaining the integrity of India’s insolvency framework. The requirement to Beneficial Ownership Disclosure Added to Resolution Plans is a key component of this increased scrutiny. This information is critical because it helps prevent issues such […]
Read moreMandatory Beneficial Ownership Disclosure Introduced Because IBBI Tightens CIRP Transparency
To protect the insolvency framework’s integrity, the Insolvency and Bankruptcy Board of India (IBBI) is putting more emphasis on transparency, governance, and credibility within the Corporate Insolvency Resolution Process (CIRP). This emphasis seeks to prevent the process from being abused for personal gain or to regain control of stressed assets through covert means. A recent […]
Read moreHow Accurate Valuation Determines Success of CIRP & Liquidation Sales
Valuation serves as the financial backbone of the Insolvency and Bankruptcy Code, 2016 (IBC), with its primary objective being the maximisation of the corporate debtor’s asset value to ensure optimal recovery and timely resolution. It directly influences bidder confidence by providing a transparent benchmark for fair value, enabling informed bidding and attracting serious resolution applicants. […]
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Is Resolution Professional Truly Independent Under Current IBC Framework?
Under the Insolvency and Bankruptcy Code, 2016 (IBC), the resolution professional (RP) is appointed to manage the affairs of a corporate debtor as a going concern during the corporate insolvency resolution process (CIRP), oversee the formation of the Committee of Creditors (CoC), collate and verify creditor claims, and facilitate the submission and evaluation of resolution […]
Read moreRegulation 4E of the IBBI (CIRP) Regulations, 2016
Real estate insolvencies under the Insolvency and Bankruptcy Code, 2016 (IBC) have presented unique challenges, particularly for homebuyers in partially completed projects. During the corporate insolvency resolution process (CIRP), homebuyers often face uncertainty regarding the possession of their units, with the resolution process frequently prioritizing financial creditors and potentially stalling construction. In response, the Insolvency […]
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Transfer and Transmission of Securities under the IBC
Under the Companies Act, 2013, transfer of shares is a voluntary act where a shareholder knowingly sells or gifts their shares to another party, while transmission of shares in an involuntary transfer of ownership by operation of law, such as death, insolvency, or success. In insolvency, the distinction between transfers and transmission becomes critical in […]
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SARFAESI Action Unaffected by Resolution Plan of Corporate Debtor
The conflict between the Insolvency and Bankruptcy Code, 2016 (IBC) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (SARFAESI Act) arises as IBC’s moratorium halts SARFAESI actions, yet secured creditors often continue SARFAESI enforcement. This is due to the IBC’s focus on corporate revival, sometimes excluding them, thus […]
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