Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
Position of Homebuyers under RERA and IBC
The Hon’ble Supreme Court in Vishal Chelani and others v. Debashish Nanda held that Homebuyers under RERA and IBC cannot be treated differently from other financial creditors under the Insolvency and Bankruptcy Code, 2016 (IBC) merely because they have obtained orders from the authorities under the real estate laws in India. The insolvency framework under […]
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Difference between insolvency professional and registered valuer
In the insolvency and bankruptcy domain, insolvency professionals (IPs) and registered valuers (RVs) have crucial but distinctive roles within the insolvency process under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”). While IPs manage the overall insolvency resolution process, ensuring that it progresses in accordance with legal and regulatory requirements, RVs […]
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Role of asset reconstruction companies in insolvency proceedings
The Insolvency and Bankruptcy Code, 2016 (IBC) aims to revive, restructure, or rehabilitate insolvent companies. Insolvent companies face several legal and financial issues, which they overcome with the aid of other professionals and entities. Asset Reconstruction Companies (ARCs) are one of the many options available to them. What Are Asset Reconstruction Companies (ARCs)? Asset Reconstruction […]
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Regulatory bodies under IBC
Regulatory bodies under IBC, are crucial as they play a vital role in ensuring the smooth and efficient functioning of the insolvency resolution process. They protect the interests of all stakeholders involved and uphold the integrity of the insolvency system in India by regulating key participants within the IBC framework. Understanding the Key Regulatory Bodies […]
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Section 9 of IBC – Insolvency and Bankruptcy Code, 2016
The Insolvency and Bankruptcy Code, 2016 (IBC) provides for a speedy and efficient dispute mechanism for the resolution process. Under the IBC, the different classes of people may initiate the process, one of whom is operational creditors. Section 9 of IBC allows for an operational creditor to file an application with the Adjudicating Authority to […]
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Insolvency Frameworks in Developed vs. Developing Nations
Insolvency Frameworks in Developed vs. Developing Nations ensure the timely resolution of distressed businesses and the protection of creditor and debtor rights. These laws facilitate the reorganization of viable businesses and the liquidation of non-viable ones. It has a crucial role in maintaining economic stability by providing a structured framework to manage failing businesses, allowing […]
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Corporate Bankruptcy: How It Works, What It Means for Investors
Corporate bankruptcy is the process that companies or individuals opt for when they are unable to pay their debts to their creditors on time. It is a difficult time for companies or individuals and creditors, but for investors, it is an opportunity. Potential investors should do their due diligence and thorough research on whether the […]
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Committee of creditors- responsibilities & functions
In 2016, the insolvency law had a major change in the enactment of the Insolvency and Bankruptcy Code, 2016. As per this Code, a new method was available for the creditors to seek resolution of a company by engaging an insolvency professional to take charge of the business operations of the corporate debtor when the […]
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What are haircuts in the resolution plan?
In the Insolvency and Bankruptcy Code, 2016 (IBC) haircuts in the resolution plan is the difference between the amount creditors claim and what they receive. It essentially signifies the amount the lender has to “cut off” from their claim due to the company’s inability to fully repay their debts. Critics argue that high haircuts can […]
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How Does Liquidation Affect Employees?
When an insolvent company goes into liquidation, employees face a challenging period as the company ceases operations and ultimately stops all salary payments. During this time, understanding How Does Liquidation Affect Employees becomes crucial, as unpaid wages typically become a claim in the liquidation process. For employees, knowing their rights and exploring any available remedies […]
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Communication Strategies for Creditors During a Bankruptcy
When a corporate debtor and its creditors are involved in the resolution process under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”), it becomes necessary to have effective Communication Strategies for Creditors During a Bankruptcy to manage the complexity of the situation. Under the Code, communication is implicitly mentioned in its […]
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The Role of Arbitration in Insolvency
Arbitration and insolvency laws clash due to their fundamentally different approaches to resolving any legal issue. While insolvency aims to centralize debt resolution by managing all claims against an insolvent company in court, Role of Arbitration in Insolvency promotes decentralized dispute resolution through private tribunals. This creates a potential conflict when both processes are involved, […]
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