Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
Moratorium and Consumer Penalties under the IBC
The moratorium under the Insolvency and Bankruptcy Code, 2016 (“the IBC”) provides a temporary stay on legal proceedings against a debtor, but does not extend to Penalties under the IBC imposed under consumer protection laws. Recent judicial clarifications emphasize that regulatory penalties, such as those issued by the National Consumer Disputes Redressal Commission (NCDRC) are […]
Read moreGST Compliance by Resolution Professionals during CIRP
The insolvency framework aims to balance the interests of all stakeholders during the process, and GST Compliance by Resolution Professionals is a key aspect of this. Companies undergoing the corporate insolvency resolution process (CIRP) require a separate GST registration under the interim resolution professional (IRP) or resolution professional (RP) duty, distinct from the company’s pre-insolvency […]
Read moreSection 34 of Arbitration Act
Chapter VII, Section 34 of Arbitration Act and Conciliation Act, 1996 provides the power to parties of arbitration to challenge the final arbitration award. It allows parties to seek judicial intervention to set aside the arbitration award and lays down specific grounds on the basis of which the final award can be set aside. This […]
Read moreLost in a Labyrinth NCLT Withdrawal under the IBC
The insolvency process begins with a creditor or corporate debtor filing an application with the Adjudicating Authority, the National Company Law Tribunal (NCLT), which will then admit the application if it meets the requirements under the Insolvency and Bankruptcy Code, 2016 (“the IBC”). The journey from admission to withdrawal has evolved since the enactment of […]
Read moreUnderstanding Fresh Start Process Under IBC in India
TheFresh Start Process Under IBC process is given under Part III of Chapter II of the Insolvency and Bankruptcy Code, 2016 (“the IBC”) as a streamlined insolvency resolution mechanism designed to offer a financial reset for low-income individuals and small partnerships. It allows qualifying debtors to discharge certain debts and make a fresh start financially, […]
Read moreLiability for prior offences under Section 32A of the IBC
Introduced through the Insolvency and Bankruptcy Code (Amendment) Act, 2020,Section 32A of the IBC, 2016 gives a “clean slate” for corporate debtors after a resolution plan is approved, offering immunity from past offenses, but only if the new management meets certain conditions and the original management is not involved. This aims to encourage resolution applicants […]
Read moreNegotiating of Resolution Plan
Insolvency often involves a complex web of relationships between various stakeholders, including creditors, debtors, and potential investors. It provides a platform for these parties to openly communicate, understand each other’s interest, and collaboratively work towards resolution. Negotiating of Resolution Plan enables creditors and debtors to reach mutually beneficial agreements, such as structured payment plans or […]
Read more
Avoidance Transaction under IBC: Key Factors
Avoidance Transaction under IBC are actions taken by a debtor before entering insolvency proceedings that are deemed to unfairly benefit certain creditors or reduce the value of the estate available to all creditors. The existence of such transactions discourages debtors from engaging in transactions that could harm creditors as they can be undone in the […]
Read moreBankruptcy Advantages and Disadvantages
Bankruptcy is a legal process where individuals or businesses facing unmanageable debt can seek relief by either liquidating assets or reorganizing their debt. Chapter 7, 11, and 13 of the United States (US) Bankruptcy Code are different types of bankruptcy, each with its own implications for debtors and creditors. Weighing the Bankruptcy Advantages and Disadvantages […]
Read moreInsolvency Petition Procedure in India
The Insolvency and Bankruptcy Code, 2016 (“the IBC”) is a crucial framework in India for resolving corporate defaults within a structured and time-bound manner. It aims to maximise asset value, promote entrepreneurship, and balance stakeholder interests. The IBC’s key strength lies in its time bound process, typically requiring completion of the Insolvency Petition Procedure within […]
Read more
Liquidation Value Definition What’s Excluded and Example
In financially distress situations, liquidation value helps businesses understand the minimum value they can expect if they need to wind down operations or restructure. It represents the potential recovery for creditors and investors if a company is forced to sell its assets quickly. Hence, understanding this value is essential for making informed decisions about investments, […]
Read moreDebt Relief Insolvency Laws in India
India’s insolvency regime, anchored by the Insolvency and Bankruptcy Code, 2016 (“the IBC”), provides structured Debt Relief Insolvency Laws for companies, guarantors, and individuals by streamlining the insolvency resolution process and emphasizing time-bound resolutions. The framework aims to maximize asset value, balancing stakeholders interests, and facilitate a graceful exit for failing businesses. The Groundwork: The […]
Read more