Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
Contribution of IBC on Economic Growth
The Insolvency and Bankruptcy Code, 2016 (the IBC) came into effect with several objectives, such as maximising the value of debtor’s assets, promoting entrepreneurship, ensuring timely resolution of cases, and balancing the interests of all stakeholders. By fulfilling its objectives, the IBC on Economic Growth contributes of India. The Role of IBC on Economic Growth […]
Read more
Liquidator: Powers and Functions under IBC
A Liquidator: Powers and Functions under IBC, with reference to section 5(18) of the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”), is an insolvency professional who is appointed by the court, which in insolvency law, is the National Company Law Tribunal (NCLT) to manage a company’s liquidation process when it is […]
Read more
Four Pillars of the Insolvency and Bankruptcy Code, 2016
The Four Pillars of the Insolvency and Bankruptcy Code, 2016 (IBC), is a legislative framework for corporate debtors’ insolvency, bankruptcy, or liquidation. This framework consists of four pillars that have important roles during the corporate insolvency resolution process (CIRP). In this blog, we will delve into the four pillars of this institutional infrastructure and understand […]
Read more
Chapter 7 vs. Chapter 11: What’s the Difference?
The United States (US) Bankruptcy Code, also known as Title 11 of the US Code, was enacted in 1978 and is the primary federal law that governs bankruptcy. It establishes procedures for individuals and businesses to file for bankruptcy, also outlining the rights of creditors and other stakeholders. This Code has a total of 15 […]
Read more
All About Waterfall Mechanism Under IBC
The insolvency law in India was transformed with the enactment of the Insolvency and Bankruptcy Code, 2016. Among the many changes, the waterfall mechanism Under IBC was introduced as a systematic manner is distributing the proceeds. This ensures that the distribution is done fairly, according to the principle of equitable treatment, and maintains a structured […]
Read more
The Arbitration and Conciliation Act, 1996
The Arbitration and Conciliation Act, 1996 (hereon forward known as “the Act”) governs both domestic and international arbitration, including the enforcement of foreign arbitral awards. It is essentially a legal framework for resolving disputes outside of traditional court systems through a process where parties mutually agree to appoint an arbitrator to make a binding decision […]
Read more
The Insolvency of State-owned Enterprises
The Insolvency and Bankruptcy Code, 2016 (IBC) marked a significant turning point in India’s approach to resolving the financial issues of a company. The primary aim was to streamline the resolution process, improve credit culture, and protect stakeholders’ interests. When it comes to Insolvency of State-owned Enterprises (SOEs) implementing the IBC framework introduces unique challenges […]
Read more
The Role Of Technology In Streamlining Insolvency Processes
To face the complexities of insolvency procedures and streamline the process, the development of technology such as artificial intelligence (AI), blockchain technology, and data analytics plays a crucial role. The role of technology in streamlining insolvency processes has expedited case handling, ensured transparency of legal and financial information, and improved data accuracy throughout the insolvency […]
Read more
Who is Considered as a Personal Guarantor under IBC?
Personal guarantees are generally used in small or micro businesses or those with inadequate credit history. The Insolvency and Bankruptcy Code of 2016 provides a mechanism for creditors to recover the corporate debtor’s debts, even if the corporate debtor defaults on doing so, by having the corporate debtor have a personal guarantor. Personal Guarantor under […]
Read more
Role of e-auctions in liquidating assets
The Insolvency and Bankruptcy Board of India (IBBI) issued a circular mandating the exclusive use of the eBKray auction for conducting e-auctions in liquidating assets and listing unsold assets in all liquidation processes under the Insolvency and Bankruptcy Code, 2016 (IBC). This will come into effect from April 1, 2025, and all liquidation cases must […]
Read more
Role of NCLT in insolvency proceedings
The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are governed by the Companies Act, 2013, the Insolvency and Bankruptcy Code, 2016, and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Both are pivotal in insolvency resolution and the liquidation process of corporate […]
Read more
Pre-Pack Insolvency for MSMEs
The pandemic highlighted the need for a specialised insolvency mechanism to support financially distressed micro, small, and medium enterprises (MSMEs). On 4 April 2021, the government promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, to introduce a Pre-Pack Insolvency for MSMEs (PPIRP)facing financial issues because of the pandemic. Understanding Pre-Pack Insolvency for MSMEs The […]
Read more