[Aayushi Choudhary and Vaibhav Gupta are fourth year students of Gujarat National Law University, Gandhinagar] The Insolvency and Bankruptcy Code, 2016 (IBC) brought about a major change in the landscape of corporate insolvency proceedings in the country. Nevertheless, despite the IBC’s transformative potential, its effective implementation has been hampered by a significant challenge: the...
Restoring Equity: Supreme Court on Liquidator Discretion in IBC Bidding Process
[Priyanshu Mishra is a III year BA, LLB (Hons) student at the National Law School of India University, Bengaluru] Recently, in Eva Agro Feeds Pvt Ltd v Punjab National Bank (2023INSC809), the Supreme Court decisively clarified the extent of authority granted to a liquidator in rejecting the final bid within an online bidding process. This legal dispute revolved around the rights of the highest...
Receipt of Demand Notice under IBC: Whether Price Sensitive Information?
[Ravishekhar Pandey and Amarpal Singh Dua are with MDP & Partners, Mumbai] The Securities Exchange Board of India (“SEBI”) on 12 July 2023 passed an order relating to the scrip of Shilpi Cable Technologies Limited (“STCL”) imposing penalty on the Managing Director (“MD”) as well as the Compliance Officer for violations of securities laws. In the order, the Adjudicating Officer (“AO”)...
SC Ruling in Paschimanchal Vidyut: Analyzing the Treatment of Statutory Dues as Secured Credit
[Rakshit Agarwal and Tarun Ashok are third-year B.A. LL.B. (Hons.) student at the National Law School of India University, Bangalore] The recent judgment by a division bench of the Supreme Court of India in Paschimanchal Vidyut Vitran Nigam Ltd v Raman Ispat Private Limited (‘PVVNL’) has, as we argue, settled the debate on whether statutory dues are to be considered as secured credit for the...
NCLAT’s Verdict Reshapes the Interplay Between Arbitration and Insolvency
[Mohammad Kaif is a final year student at Campus Law Centre, Faculty of Law, University of Delhi] The judgment of the National Company Law Appellate Tribunal (NCLAT) Chennai Bench in KK Ropeways Limited v. Billion Smiles Hospitality has significant implications for the interplay between arbitration and insolvency proceedings in India. The central question addressed by the NCLAT was whether a...
IBC Overrides Electricity Act: Capturing the Fallacy in Rainbow Papers
[Praveen Sharma is a 5th Year Student at MNLU Mumbai] Recently in Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Private Limited, the Supreme Court of India ruled that the Insolvency and Bankruptcy Code, 2016 (IBC) overrides the Electricity Act, 2003. While dismissing the appeal of Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), the Court provided crucial clarification regarding the...
Commercial Wisdom of the Committee of Creditors: An End to Excessive Deference?
[Mathanki Narayanan is a 4th year B.A. L.L.B. (Hons.) student at Jindal Global Law School] The conceptualization of the Insolvency and Bankruptcy Code, 2016 (IBC) was underpinned by the need to preserve economic value through expediency. However, its implementation has revealed asymmetries of power amongst the creditors. The Committee of Creditors (CoC) spearheads the Corporate Insolvency...
Balancing Review and Recall: NCLAT on Correction of Procedural Errors
[Basil Gupta is a 4th year B.A., LL.B. (Hons.) student at National Law University, Jodhpur] The National Company Law Appellate Tribunal (NCLAT) has clarified that it possesses the power to recall its judgments, asserting its inherent authority under Rule 11 of the NCLAT Rules, 2016. In a significant decision, a five-member bench of the NCLAT in Union Bank of India (Erstwhile Corporation Bank) v...
Reimagining the Insolvency Process: A Case of Multiple Resolution Plans
[Piyush Kr. Choubey and Kaustubh Kumar are 4th year students at the National University of Study and Research in Law, Ranchi] The Ministry of Corporate Affairs (“MCA”) in January 2023 floated a discussion paper on possible changes to the Insolvency and Bankruptcy Code, 2016 (the “Code”). One of the topics in the discussion paper was “Reimagining the consideration of the resolution plan and the...
Supreme Court Ruling: Admission of Corporate Insolvency a Norm, Rejection an Exception
[Megha Maiti and Subhasmita Routray are legal counsels at Mercedes-Benz Financial Services India Private Limited] Section 7(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) lays down the power of the National Company Law Tribunal (NCLT) to either accept or reject an insolvency application filed by a financial creditor. The issue of whether the said power is mandatory or discretionary in...
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