TagInsolvency

Resolving the Conundrum of Decree-holding Homebuyers under the IBC

[Anand Singh is a 3rd-year student of Hidayatullah National Law University (HNLU), Raipur] Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) allows financial creditors to initiate a corporate insolvency resolution process (“CIRP”) against a corporate debtor. However, whether a decree or recovery certificate holder falls under the said provision has always remained an open question...

Law Over Equity in Condonation of Delay under the IBC

[Anumeha Smiti is a final year B.A.LL.B (Hons.) student at National University of Study and Research in Law, Ranchi] In the recent matter of National Spot Exchange Limited v. Mr Anil Kohli, Resolution Professional for Dunar Foods Limited (14 September 2021), the Supreme Court reiterated the position of law on condonation of delay by the National Company Law Appellate Tribunal [NCLAT] under...

A Look at the Recently Redefined Scope of Section 9 of the IBC

[Jagrati Maru and Vaishnavi Srivastava are 5th year B.A. LL.B. (Hons.) students at Gujarat National Law University in Gandhinagar] Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) empowers an operational creditor to file an application to initiate the corporate insolvency resolution process (CIRP) against a corporate debtor. The section further lists out certain requirements which need...

Operational Creditors and their Exclusion from the Committee of Creditors under the IBC

[Deevanshu Jaswani is a 4th year B.A., LL.B. (Hons.) student at National Law University, Odisha] The Supreme Court recently in K.N Rajakumar v. Nagarajan has reiterated the ‘settled principle’ of going concern of corporate debtor and held that “[e]very attempt has to be first made to revive the concern and make it a going concern, liquidation being the last resort.” This came in the backdrop of...

Fallacy in Extending Section 29A of IBC to Liquidation

[Amay Bahri is a final year student at National Law University, Delhi] Section 29A of the Insolvency and Bankruptcy Code, 2016 (“IBC”) is one of the most contentious and debated provisions under the legislation. It creates a statutory bar on certain persons (being promoters or management of corporate debtors) as well as persons connected to, related to, and working jointly with such persons from...

Going Concern Sales under IBC: An Analysis

[Kumari Saloni is a 4th year B.A.LL.B. (Hons.) student at National Law University, Delhi] The corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016 (‘IBC’) aims at the revival of financially distressed companies. Contrarily, liquidation only aims at maximum recovery to the creditors because in liquidation a debtor does not survive after the event. However, the...

The Need for Standardizing Valuation Methods in Corporate Insolvency

[Saurabh Agnihotri is a 4th year BA. LLB student and Ayushi Mehta a 4th year BBA. LLB student at Gujarat National Law University] Under the Insolvency and Bankruptcy Code, 2016 (“IBC”), valuation of assets is one of the core features dealt with in a corporate insolvency resolution process (“CIRP”). The process of valuation conducted by registered “valuers” or valuation professionals helps...

Commercial Wisdom vs. Judicial Wisdom: An Ongoing Debate of Primacy

[Kartik Singh is a 4th year B.A., LL.B. (Hons.) student at National Law University, Odisha, Cuttack] The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted with the objective of providing a time-bound insolvency resolution mechanism to a financially stressed company and saving it from liquidation. For the said purpose, the committee of creditors (CoC) comprising financial creditors is at the...

Hanging by a Thread: The Saga of Interest-Free Loans under the IBC

[Ojaswi Shankar is with ICICI Bank in Mumbai] In Orator Marketing Private Limited v. Samtex Desinz Private Limited (26 July 2021), the Supreme Court held that a person who has advanced an interest-free loan to a corporate entity would be a ‘financial creditor’ and, hence, competent to initiate a corporate insolvency resolution process (“CIRP”) under section 7 of the Insolvency and Bankruptcy...

Recourse to Appropriate Proceedings against Personal Guarantor of Corporate Debtor

[Akansha Uboveja is a fifth-year B.A., LL.B. (Hons.), student at Hidayatullah National Law University, in Raipur] Recently, the National Company Law Appellate Tribunal (NCLAT) in Nitin Chandrakant Naik v. Sandhiya Industries LLP clarified the position of personal guarantors in corporate insolvency resolution proceedings (CRIP) initiated against a corporate debtor under the Insolvency and...

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