Tag: Debt Restructuring
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Pre-Packaged Insolvency: A Stumbling Block for the MSME Sector
[Gunjan Singh and Umang Chaturvedi are 3rd year B.A. LL.B. (Hons.) students at Rajiv Gandhi National University of Law, Punjab] The disruption of economic processes and business cycles owing to the pandemic caused a major blow to the functioning of the industrial sector. Additionally, it impacted the entities who had already borrowed money from the…
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Priority and Value of Security Interest Cannot be a Ground for Challenge of Resolution Plan
[Anugya Mukati and Kirti Dhoke are undergraduate students at the National Law Institute University, Bhopal] The Supreme Court of India in a recent judgment in the matter of India Resurgence Arc Private Limited v. Amit Metaliks Limited, held that a Resolution Plan that has been approved under the Insolvency and Bankruptcy Code ( “the Code”)…
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Extinguishment of a Personal Guarantor’s Right of Subrogation: A Critique
[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…
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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…
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Corporate Restructuring in India: The Cross-Class Cramdown Provision
[Aastha Agarwalla is a final year law student at Campus Law Centre. Faculty of Law, University of Delhi] The United Kingdom (UK) recently enacted a much-awaited economic legislation, the Corporate Insolvency and Governance Act 2020 (CIGA). The CIGA introduces sweeping reforms, including a cross-class cramdown provision (CCDP), in the restructuring legal framework. The cramdown mechanism,…
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The Adjudication of Disputed Claims Under the IBC: A Lacuna Left Unattended?
[Preksha Mehndiratta and Anchit Jasuja are 2nd year law students at Gujarat National Law University] The development of the clean slate approach in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta & Ors. has the effect of discharging the corporate debtor of all undecided claims including those claims which are disputed. Thus,…
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Suspension of the Insolvency and Bankruptcy Code: The Way Forward
[Shreya Choudhary and Arnav Sinha are final year students of ILS Law College, Pune] In the wake of recent developments involving the Insolvency and Bankruptcy Code of 2016 (IBC), it is important to explore the various alternatives to restructuring debt, dealing with stressed assets and furthering the economic growth in the country. The Finance Minister…
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Participation of Mutual Funds and Insurance Companies under the RBI’s Stressed Assets Framework
[Sachin Santuka is a B.B.A LL.B. candidate at the National Law University Odisha] After the Supreme Court in Dharini Sugars v Union of India struck down the Reserve Bank of India (RBI) circular dated 12 February 2018, the RBI on 7 June 2019 introduced a revised framework for the resolution of stressed assets. The provisions…
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Will the RBI’s Revised Circular on Stressed Assets Sustain its Validity?
[Surya Rajkumar is a BA LLB student at Jindal Global Law School] The Reserve Bank of India (RBI) had on 7 June 2019 issued its revised circular on the resolution of stressed assets following the decision of the Supreme Court of India in Dharini Sugars and Chemicals Limited v. Union of India, (2019) 5 SCC…
