Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
How do stakeholder influence the insolvency resolution process
Corporate insolvency is the state in which a company is unable to pay its debts when they become due because of several reasons, including cash flow issues and excessive debt. The efficiency of the corporate insolvency resolution process (CIRP) depends on the actions of the stakeholders. The Insolvency and Bankruptcy Board of India (IBBI) regulates […]
Read moreDoctrine of Commercial Wisdom of CoC
The enactment of the Insolvency and Bankruptcy Code, 2016 (the IBC) is a revolutionary legislation in insolvency law. The role of the Committee of Creditors (CoC) is crucial in the resolution process as it decides the revival or liquidation of corporate debtors. The Doctrine of Commercial Wisdom of CoC importance is underscored through landmark judgments, […]
Read moreRole of Blockchain in Insolvency Framework
Adopting technology within an insolvency framework is crucial to improve the efficiency, transparency, and accuracy of the insolvency process. Technological tools can lead to quicker resolution times and better outcomes for all stakeholders. Different technologies can be used to improve the resolution process, such as artificial intelligence, Blockchain in Insolvency, data analytics, and cloud computing. […]
Read morePrinciple of Equitable Treatment Under Insolvency Law
When a company becomes insolvent, there are several parties involved in the resolution process, not only the corporate debtor and its creditors. Understanding equitable treatment under insolvency law is essential, as it ensures a fair distribution of assets and protects the interests of all stakeholders. The Insolvency and Bankruptcy Code, 2016 (IBC) provides the framework […]
Read moreThe principle of good faith in insolvency proceedings
In the insolvency framework, good faith in insolvency is represented by the actions of the parties involved in the resolution process. For instance, under the Insolvency and Bankruptcy Code, 2016 (IBC) a creditor has to disclose all relevant information about their debt when filing a claim, an insolvency professional must act impartially, and a debtor […]
Read moreThe Doctrine of Piercing the Corporate Veil in Insolvency Cases
A company has a juristic existence that is independent of its shareholder, known as the figurative ‘Corporate Veil in Insolvency’. The members are protected against obligations resulting from the company’s acts. In a series of judgments, courts have taken a consistent view that the Corporate Veil in Insolvencyof a company should be respected as the […]
Read moreThe Need for Group Insolvency
When one company within a group becomes insolvent, its financial troubles can affect group companies due to shared financial obligations, making separate insolvency proceedings inefficient. Most insolvency laws are designed to handle individual companies, including the Insolvency and Bankruptcy Code, 2016 (the IBC). Therefore, a dedicated Need for Group Insolvency framework is needed to effectively […]
Read moreDecoding the Doctrine of Antecedent Debt
Insolvency proceedings are important to resolve the financial issues of companies and require all parties involved in such proceedings to be genuine and provide accurate information. In India, the Insolvency and Bankruptcy Code, 2016 (IBC) is the comprehensive framework to address insolvency and ensure timely resolution. Doctrine of Antecedent Debt is the primary goal to […]
Read moreWhat are the implications of insolvency for suppliers and customers?
Companies will go through the insolvency process only when they are under financial duress. In today’s industry this has become often due to the effects of trade disputes, social disruptions, political uncertainties, etc, and not only because of bad management. Insolvency risk is the possibility that a company may be unable to meet its payment […]
Read moreImportance of Public Announcement in the IBC Process
During the resolution process, an essential element is a public announcement in the IBC Process. Only after the Public Announcement in the IBC Process of the initiation of the corporate insolvency resolution process and the call for submission of the creditor’s claims, can the moratorium period officially begin. What is a Public Announcement in CIRP? […]
Read moreImportance of the Corporate Debtor as a going concern under IBC
The Insolvency and Bankruptcy Code, 2016 was established to resolve the financial issues of the corporate debtor as a going concern. It is crucial to treat the corporate debtor as a viable business that can continue operating and be sold as a whole unit. But what is the need for continuing an insolvent company that […]
Read moreTreatment of secured and unsecured creditors in insolvency
When a corporate debtor faces financial distress they undergo the insolvency process. If this process is not successful because the debtor and its unsecured creditors are not able to reach a viable repayment plan or the National Company Law Tribunal decides that the corporate debtor should be liquidated, the liquidation process commences under the Insolvency […]
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