[Archis Choudhary is a 4th year B.A., LL.B. (Hons.) student at Hidayatullah National Law University in Raipur] Section 14(2) of the Insolvency and Bankruptcy Code 2016 (Code) restricts the termination of supply of essential goods or services to the corporate debtor during moratorium period. In the case of Innoventive Industries Limited v. ICICI Bank Limited (2017), the Supreme Court observed that...
Companies (Amendment) Act, 2017: Loans to Directors
[Utsav Mitra is a 3rd year, B.A. LLB Hons student at The National Law Institute University, Bhopal] The granting of loans to, and security and guarantees provided on behalf of, directors and other interested parties of the directors is governed by section 185 of the Companies Act, 2013. However, this is a widely criticised section, being too prohibitive in nature as compared to the corresponding...
Disclosures by Professionals under the Insolvency and Bankruptcy Code
[Himanshu Mene is an L.L.M Candidate (Specialization in Corporate Law) at Maharashtra National Law University, Nagpur] Introduction In the interest of transparency, Insolvency and Bankruptcy Board of India (“IBBI”) by way of a notification dated January 16, 2018 has issued a circular mandating that Insolvency Professionals (IPs) and all other professionals that are appointed by the IPs for the...
Condonation of Delay Scheme, 2018: A Relief to Defaulting Directors and Companies
[Tanaya Desai is a 4th-year student at ILS Law College, Pune] In a bid to constrict and prevent illicit fund flows and black money by shell companies, the Ministry of Corporate Affairs (“MCA”) last year disqualified over 300,000 directors for default in filing company annual returns and financial statements with the Registrar of Companies (“RoC”), a statutory mandate prescribed by the Companies...
Vouchers under GST: Navigating a Grey Area
[Siddhant Bhasin is a third year B.A., LL.B. (Hons.) student at Jindal Global Law School, Sonipat] The use of vouchers has been on the rise, and a large number of transactions today are done through them. They are used in different contexts as – employee incentives, sales schemes and as discount offers. In most cases, there is an issuing party, the party that accepts the coupon for the said...
Abstention in a Committee of Creditors: Whether Counted for Voting
[Nitu Poddar is a Senior Associate at Vinod Kothari and Company, and can be reached at [email protected]] This post deals with the question whether, in determination of the assent at a Committee of Creditors (“CoC”) in corporate insolvency resolution proceedings, the votes of such creditors who (a) do not vote at all, at an electronic voting; or (b) abstain from voting at the meeting...
The Smart Contract Revolution
[Vrinda Vinayak is a 4th year B.A., LL.B (Hons.) student at the National Law University, Delhi] Background The concept of smart contracts was first envisaged by Nick Szabo in 1994. Such contracts consist of three essential elements. They are – (i) negotiated, coded and executed over the blockchain, in simple ‘yes-no’ or ‘if-then’ terms, (ii) authenticated by anonymous...
Legal Issues Surrounding Online Card Gaming
[Meenal Maheshwari Shah is the legal counsel for Brand Capital, the investment arm of the Times of India Group] A vast population in India likes to engage in card games, especially rummy and poker. It naturally follows that with the advent of internet, they are fixated on the websites which host such games for stakes. Legal Framework Gaming with stakes falls within the purview of gambling...
Limitation Act and Insolvency and Bankruptcy Code: Deductions from the Past and Present
[Priya Gupta is a 3rd year B.A.LLB (Hons.) student at Gujarat National Law University, Gandhinagar] Over the past few months, a considerable debate has emanated on whether the Limitation Act, 1963 is applicable to proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”). Although the answer has always resulted in being negative, the reasoning has been varying. The question first arose...
IBBI Amendments on Liquidation Value and Price Discovery
[Shaleen Tiwari is an Associate at Jerome Merchant & Partners, Mumbai] In an amendment dated 31 December 2017, the Insolvency and Bankruptcy Board of India (“IBBI”) amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). The amendment came close on the heels of the Insolvency and Bankruptcy (Code)...
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