[Megha Khandelwal and Ananya Ghosh are 4th Year B.A. LL.B. (Hons.) students at the National Law School of India University, Bangalore.] The Covid-19 pandemic and its consequential lockdown has resulted in an economic ripple effect on businesses all across the globe. To mitigate its impact, governments of various countries have amended their respective insolvency laws and adjudicatory processes...
NCLAT’s Ruling in the Surana Liquidation Case: An Analysis
[Shreya Dagar is a 3rd year B.A. LL.B. (Hons.) student at National Law University Jodhpur] The National Company Law Appellate Tribunal (“NCLAT”) on 18 June 2020 decided in favour of the liquidator in Srikanth Dwarakanath v. Bharat Heavy Electricals Limited (BHEL). The case dealt with the liquidation of Surana Power Limited (“SPL”). The tribunal imported a provision of the Securitisation and...
The Dilemma of Jurisdiction under Arbitration and Insolvency: Another Trolley Problem? – Part II
[Kartikey Sanjeev Bhalotia and Arshit Kapoor are 2nd year students at National Law University Odisha] In lieu of the conclusion in the previous post, the authors opine that in a case where there exists an arbitrable dispute between the parties, the admission of an application under section 7 of the IBC can undermine the sanctity of a contract and the underlying trust required for every business...
The Dilemma of Jurisdiction under Arbitration and Insolvency: Another Trolley Problem? – Part I
[Kartikey Sanjeev Bhalotia and Arshit Kapoor are 2nd year students at National Law University Odisha] Though the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’) and the Insolvency and Bankruptcy Code, 2016 (‘IBC’) pertain to different subject areas, various adjudicating authorities in India have started facing a very important question arising out of the interplay between these laws...
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, it becomes important for the Corporate...
The NCLT on the Institution of CIRP on a Petition Filed by a Foreign Entity
[Naman Katyal is a II year B.A., LL.B. (Hons) student at Gujarat National Law University] The conundrum regarding the competence of an operational creditor not incorporated under the laws of India to file a plea for initiation of Corporate Insolvency Resolution Process (‘CIRP’) under section 9 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) has come to the fore again with the decision of the...
Fixing Limits to the Number of Assignments for an Insolvency Professional: A Bad Idea
[Ragini Agarwal and Mayank Udhwani are 5th Year B.A. LL.B. (Hons.) students at National Law University, Jodhpur] In its latest Discussion Paper, the Insolvency and Bankruptcy Board of India (‘IBBI’) has proposed to issue guidelines for imposing a cap on the number of assignments that an insolvency professional (‘IP’) can take up at a time. In this post, the authors argue that setting a limit on...
Decoding the Myths of Asset Value Maximisation in Insolvency
[Mudit Jain is a penultimate year B.A. LL.B. (Hons.) student at the National University of Advanced Legal Studies, Kochi] The Insolvency and Bankruptcy Code, 2016 (“IBC”) envisages ‘asset value maximisation’ under the long title of the statute. This has been amply litigated before being settled that the role of the committee of creditors (“CoC”) in a corporate insolvency resolution process...
A Banker’s Tax: Accepting the Inevitability of Bailouts and Enhancing Government Response
[Karan Kamath is a 2020 B.A. LL.B. (Hons.) graduate from Symbiosis Law School, Pune] Since the 2008 financial crisis, regulators around the world have made regulations more stringent to prevent, inter alia,bank collapses and resultant bailouts. Governments maintain that bailouts are not something they wish to repeat. However, bailouts have been resorted to rather commonly. A 2016 economics...
Disgorgement by SEBI under Section 32A of IBC: Death-Knell for Insolvency Resolution?
[Rongeet Poddar is a graduate of West Bengal National University of Juridical Sciences & Vishal Hablani is a final year student at West Bengal National University of Juridical Sciences] The Securities and Exchange Board of India (“SEBI”) has released a ‘Report on the Measures for Strengthening the Enforcement Mechanism of the Board and Incidental Issues’ on 16 June 2020. The Report has...
Recent Comments