[Vijay Rohan Krishna is pursuing his LLM (Corporate and Commercial Laws) at NUJS, Kolkata, and Sambhawi Sanghamitra is a 3rd year B.A. LL.B. (Hons.) student at CNLU, Patna] Ever since personal guarantors were made liable under the Insolvency and Bankruptcy Code, 2016 (IBC) by way of the notification dated 15 November 2019, their rights and liabilities under the IBC have been extensively debated...
Supreme Court Rules on ‘Transfer of Winding Up Proceedings’
[Aditya Rajagopal is a graduate of NUJS, Kolkata (Batch of 2020) and is currently an associate at Shardul Amarchand Mangaldas & Co] One of the contentious issues after the enactment of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) has been regarding the transfer of pending ‘winding up’ proceedings to the National Company Law Tribunal (‘NCLT’). Section 434 of the Companies Act, 2013 (‘Act’)...
The Yes Bank – Zee Case: Settling the Discomfort around Letters of Comfort
[Debayan Gangopadhyay and Rashmi Birmole are final and penultimate year B.A., LL.B. students respectively at ILS Law College, Pune] Occasionally, a debtor’s residence in a different jurisdiction or lack of creditworthiness may attract concerns and reluctance on part of the creditor. What often follows is the need for additional credit support or a “quasi-security”. In this post, the authors deal...
Avoidance Proceedings After the Approval of the Resolution Plan
[Anjali Soni is a 2nd year student at National Law University, Odisha.] The Insolvency and Bankruptcy Code, 2016 (“IBC”) enumerates four types of vulnerable transactions, namely preferential, undervalued, fraudulent and extortionate and provides the procedure for the avoidance of the same. The resolution professional while facilitating the resolution of the corporate debtor, is dutybound to...
Vodafone’s Triumph: One Step Closer to a Better Standard in FET?
[Achyutha GM is a 4th year B.Sc. LL.B. (Hons.) student at the Gujarat National Law University, Gandhinagar] It all began with an acquisition that Vodafone International Holdings B. V. (‘Vodafone’), the Dutch subsidiary of the UK-based Vodafone Group carried out in 2007. CGP Investments Limited (‘CGP’) is a special purpose vehicle based in the Cayman Islands for tax purposes that owns a...
NCLAT on the Treatment of Power Purchase Agreements in Liquidation
[Apoorva Soni is a III year B.A. LL.B. (Hons.) student at National University of Study and Research in Law, Ranchi] The National Company Law Appellate Tribunal (“NCLAT”), by its decision in the matter of Gujarat Urja Vikas Nigam Ltd (GUVNL) v. Yes Bank Ltd dated October 20, 2020, held that a company could not terminate a Power Purchase Agreement (“PPA”) executed with a corporate debtor during...
Termination During Moratorium: An Alternative Perspective
[Kartik Adlakha is a 5th year B.B.A., LL.B. (Hons.) student at the Jindal Global Law School] On 24 June 2020, the National Company Law Appellate Tribunal (‘NCLAT’) in the case of Tata Consultancy Services Limited v. Vishal Ghisulal Jain(‘TCS Case’)upheld the National Company Law Tribunal (‘NCLT’) Mumbai bench’s order of stay on termination of a Facilities Agreement (‘Agreement’). This was because...
Dissolution without Liquidation: A Disguised Strike-off under the IBC?
[Megha Mittal is an Associate at Vinod Kothari & Co] In a first of its kind, the National Company Law Tribunal, Bengaluru Bench (‘NCLT’), by way ofits order dated 16 November 2020 in Synew Steel Private Limited, has ordered for direct dissolution from a corporate insolvency resolution process (‘CIRP’), thereby waiving the mandatory requirement to undergo the liquidation process. The said...
Creditors with Rejected Claims: Methods to Address Inadequacies under the IBC
[Anchit Jasuja and Preksha Mehndiratta are 3rd year law students at the Gujarat National Law University, Gandhinagar] The Insolvency and Bankruptcy Code, 2016 (‘IBC’) confers the resolution professional with the duty to collate and verify all claims submitted to him by the creditors. While the resolution professional does not formally have the power to reject claims, in practice the resolution...
Google’s Antitrust Saga: Pay to Play
[Anchit Nayyar is a 4th year BBA LLB (Hons) student at Symbiosis Law School, Pune] Through its order dated 9 November 2020, the Competition Commission of India (“CCI”) has launched investigations into allegations pertaining to Google abusing the dominance of its Android Operating System (“Android OS”) and the Play Store to give an unfair competitive advantage to its UPI application Google Pay...
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