Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
Section 66 of IBC, 2016
The Insolvency and Bankruptcy Code, 2016 (“the IBC”) is a landmark legislation designed to streamline corporate debtor restructuring and ensure timely resolution of insolvency cases. It emphasizes director accountability during insolvency by holding them personally liable for actions that worsen the financial position of a failing company, thereby protecting creditor interest. Section 66 of the […]
Read moreAuthorised Representation under Sections 21(6) & 21(6A) of IBC
The Committee of Creditors (CoC) is the primary decision-making body during the insolvency process, composed of financial creditors who collectively decide on the future of a corporate debtor, including approving resolution plans or initiating liquidation. It is crucial for maximizing asset value and ensuring creditor interests are protected through the insolvency process. In some insolvency […]
Read moreAnalysing the Interplay of the IBC and the EPFO Act
The Insolvency and Bankruptcy Code, 2016 (IBC) is an umbrella legislation which establishes a time-bound process for resolving corporate insolvency through the corporate insolvency resolution process (CIRP) or liquidation, aiming to maximise asset value and balance stakeholder interests. The Employees’ Provident Fund Organisation (EPFO) enforces statutory obligations under the Employees’ Provident Funds & Miscellaneous Provisions […]
Read moreThird-Party Funding as Catalyst for Effective Avoidance Recoveries under IBC
Corporate debtors undergoing insolvency proceedings often face severe financial distress due to insufficient assets, making it extremely difficult to fund litigation, like avoidance proceedings, which are critical for recovering assets and maximizing their asset value. The lack of funds creates a significant barrier, as traditional financing is typically unavailable or too risky for creditors during […]
Read moreThe Uneasy Coexistence of PMLA and IBC
The Prevention of Money Laundering Act, 2002 (PMLA) is a penal statute designed to combat money laundering and the financing of terrorism, granting the Enforcement Directorate (ED) extensive powers to attach, seize, and confiscate assets derived from criminal activities including those deemed proceeds of crime. In contrast, the Insolvency and Bankruptcy Code, 2016 (IBC) is […]
Read moreCriminal Law Meets Insolvency Law: Insights from Ashwini Mehra v. State of Odisha
The liquidator, appointed under Section 34 of the Insolvency and Bankruptcy Code, 2016 (IBC), assumes all powers of the corporate debtor’s board of directors and key managerial personnel upon receipt of a liquidation order, acting as a court officer to oversee the company’s orderly dissolution. The liquidator serves a quasi-judicial function, particularly in admitting or […]
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Forms 3 and 4 of the IBC Trigger Refined
The Insolvency and Bankruptcy Code, 2016 (IBC) established a time-bound and creditor-driven framework for resolving corporate insolvency, with the objective of maximising asset value and promoting entrepreneurship. A crucial component in initiating the corporate insolvency resolution process (CIRP) is the proper use of statutory forms—particularly Forms 3 and 4 of the IBC, which are fundamental […]
Read moreSection 8 of IBC – Insolvency and Bankruptcy Code, 2016
Briefly introduce the Insolvency and Bankruptcy Code, 2016 (IBC) is India’s unified law for resolving insolvency and bankruptcy cases in a time-bound manner. Section 8 of IBC enables operational creditors, such as suppliers, service providers, etc. to initiate the insolvency resolution process against a defaulting company by issuing a formal demand notice. This is significant […]
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Are shadow directors liable for insolvency procedures?
Begin with a quick explanation of corporate governance and how decision-making often involves individuals who are not officially on record as directors. Introduce the concept of shadow directors — individuals who influence or control the decisions of the board without formally being directors. Pose the central question: “Can shadow directors liable for insolvency proceedings under […]
Read moreAre small creditors losing out in insolvency cases?
In the insolvency framework “small creditors” are primary operational creditors, Micro, Small, or Medium Enterprises (MSMEs), individual suppliers, employees, etc. Unlike financial creditors under the Insolvency and Bankruptcy Code, 2016 (IBC) whose debt is based on the “time value of money” and is often secured, operational creditors are owed money for the goods and services […]
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Financial creditor can initiate CIRP against both Principal Borrower and Corporate Guarantor
The Insolvency and Bankruptcy Code, 2016 (IBC) provides a time-bound legal framework for the resolution of financially distressed companies known as the Corporate Insolvency Resolution Process (CIRP). A financial creditor can initiate CIRP against a corporate debtor who has defaulted on a financial debt under section 7 of the IBC. In cases involving a loan […]
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Section 95 Application under IBC After Expiry of Three Years Is Barred by Limitation
Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) allows a creditor to initiate insolvency proceedings against a personal guarantor. A key legal issue in such cases is whether the application is time-barred if filed three years after the date of the corporate debtor’s default. Courts have consistently held that such applications are governed […]
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