Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
The role of directors during insolvency proceedings
When a company enters insolvency proceedings, the role of the director significantly shifts. The directors of the company are expected during the financial difficulty period to act in the bona fide interests of the creditors and simultaneously ensure that adequate steps are taken to keep the company off insolvency. We will look into a directors […]
Read moreDoes Initiation of DRT Proceedings Extend Limitation under IBC? A Legal Analysis
Limitation is critical under the Insolvency and Bankruptcy Code, 2016 (IBC) because it prevents the revival of time-barred debts, ensuring the IBC functions as a rehabilitation mechanism, not a mere debt recovery tool. The period for filing an application under section 7 of the IBC is governed by Article 137 of the Limitation Act, 1963, […]
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RP Section 66 Plea Dismissed for Lacking Evidence
The RP Section 66 is appointed by the National Company Law Tribunal (NCLT) to manage the affairs of the corporate debtors as a going concern during the corporate insolvency resolution process (CIRP), acting as a critical facilitator for the transition from debtor in possession to creditor control. The RP’s role is administrative, encompassing the management […]
Read moreDebt Assignment During Pending CIRP Application
The Insolvency and Bankruptcy Code, 2016 (IBC) explains a time-bound mechanism to resolve the insolvency of a corporate debtor by reviving, rehabilitating, or restructuring in a time-bound manner known as the corporate insolvency resolution process (CIRP). In financial markets, debt assignment refers to the transfer of a debt obligation from one party, the assignor, to […]
Read moreCoC Approval under Section 12A of the IBC A Stumbling Block to Settlement
It provides a settlement mechanism through Section 12A of the IBC which allows for the withdrawal of a corporate insolvency resolution process (CIRP) application after its admission, provided the applicant obtains the approval of at least 90% of the voting share of the Committee of Creditors (CoC). The requirement for CoC approval, white intended to […]
Read moreWhat are the ethical considerations in insolvency practice?
In every field, a code of conduct must be followed, including by insolvency practitioners in the domain of insolvency law. The code of conduct for insolvency practitioners is outlined under the Insolvency and Bankruptcy Code, 2016, along with relevant regulations. Ethical considerations in insolvency practice must be adhered to throughout the insolvency process, ensuring fair […]
Read moreGuarantor’s Payment Can’t Protect Debtors from CIRP
The Supreme Court of India recently delivered a landmark judgment in the case of BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. & Anr, making it clear that a guarantor’s payment can’t Protect Debtors from CIRP. This ruling sets a precedent that part payments by guarantors do not absolve debtors of their full debt […]
Read moreGuarantor’s Payment Can’t Protect Debtors from CIRP
The Supreme Court of India recently delivered a landmark judgment in the case of BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. & Anr, making it clear that a guarantor’s payment can’t Protect Debtors from CIRP. This ruling sets a precedent that part payments by guarantors do not absolve debtors of their full debt […]
Read moreNCLAT Upholds Appeal in Insolvency Case Despite Delays
The NCLAT Upholds Appeal in Insolvency Case recently issued a significant decision in the case of Innovators Cleantech Pvt. Ltd. versus Pasari Multi Projects Pvt. Ltd. In this ruling, NCLAT upheld the appeal in the insolvency case despite several procedural and substantive issues, including delays in filing the appeal and the condonation of delay. The […]
Read moreIBBI Suspends Insolvency Professional for 2 Years
In a strong regulatory move, the IBBI Suspends Insolvency Professional for 2 Years This severe measure follows the failure of IP to properly manage the insolvency resolution of UM Green Lighting Private Limited, showing the commitment of the Regulator to maintaining high standards in the insolvency process. Background of the Case The issues started when […]
Read moreIBBI Suspends Insolvency Professional for 2 Years
In a strong regulatory move, the IBBI Suspends Insolvency Professional for 2 Years This severe measure follows the failure of IP to properly manage the insolvency resolution of UM Green Lighting Private Limited, showing the commitment of the Regulator to maintaining high standards in the insolvency process. Background of the Case The issues started when […]
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NCLAT Upholds Appeal in Insolvency Case Despite Delays
The NCLAT Upholds Appeal in Insolvency Case recently issued a significant decision in the case of Innovators Cleantech Pvt. Ltd. versus Pasari Multi Projects Pvt. Ltd. In this ruling, NCLAT upheld the appeal in the insolvency case despite several procedural and substantive issues, including delays in filing the appeal and the condonation of delay. The […]
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