TagInsolvency

The Liquidation Value- ‘Erstwhile’ Benchmark for Prospective Investors

[Rohit Sharma is a Company Secretary in Kolkata, and can be reached at [email protected]] Introduction In accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 (‘Code’), the interim resolution professional was required to appoint two registered valuers for the valuation of the assets of the corporate debtor. The registered valuers were appointed for the valuation of...

Assignment of Debts under the Insolvency and Bankruptcy Code

[Aayush Mitruka is a lawyer based in Delhi] Synergies Dooray Automotive, the first corporate entity to be resolved under the new Insolvency and Bankruptcy Code (Code) posed a few very interesting questions and highlighted some grey areas in Code. In the present post I intend to discuss one important issue that came up in the context of assignment of debts. To put things in perspective, the Code...

Latecomers in Liquidation – Entitlements and Penalties

[Sikha Bansal is an Associate at Vinod Kothari & Company and can be reached at [email protected]] The Insolvency and Bankruptcy Code (the “Code”) provides for corporate insolvency resolution in respect of corporate debtors, and then liquidation where the insolvency proceedings fail. In case of liquidation of insolvent entities, the competing stakeholders stake their claims on...

The “May” and “Shall” Conundrum under the Insolvency and Bankruptcy Code

[Aayush Mitruka is a lawyer based in Delhi] The enactment of the Insolvency and Bankruptcy Code, 2016 (Code) was one of the most significant legal reforms in India in the recent past, aimed at solving the burgeoning problem of non-performing assets and bringing the insolvency law in tune with global standards. The Code incorporated recommendations made by various committees and went through a...

Interpretation of Essential Goods and Services under the Insolvency and Bankruptcy Code 2016

[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...

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...

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...

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)...

Operational Creditors v. Financial Creditors: Evolution of Differences

[Shubham Sancheti is a 4th year B.A., LL.B. (Hons.) student at NALSAR University of Law, Hyderabad] The Insolvency and Bankruptcy Code, 2016 [“Code”] has had its maiden anniversary but problems regarding its interpretation have continued since its inception. The segregation of the “operational creditor” from the “financial creditor” is one of the areas which still needs jurisprudential and...

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