Tag: Insolvency
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Why is Bilateral Netting Relevant?
[Lakshmi Babu is a corporate lawyer with an interest in financial regulation] The Central Government has recently notified the Bilateral Netting of Qualified Financial Contracts Act, 2020 (“Netting Act”), which intends to implement the process of bilateral netting among eligible financial parties. The Netting Act is effective from October 1, 2020. Netting, in essence, means…
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Demystifying the Air around Lease and Rental Operational Debt
[Aridaman Raghav is a 3rd year B.A. LL.B. (Hons.) student at National University of Study and Research in Law, Ranchi] The National Company Law Appellate Tribunal (‘NCLAT’) in Anup Dubey v. National Agricultural Co-operative Marketing Federation of India (NAFED) Ltd. & Ors.(7 October 2020) has held that lease rentals arising out of the use of…
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An Argument in Favour of an Effectively Mandatory CCI Approval Under Section 31(4) of the IBC- Part II
[Mayank Udhwani and Ragini Agarwal have recently graduated from National Law University, Jodhpur. Part I in this series is available here] In this two-part series, the authors argue that the provision under section 31(4) of the IBC must not be watered down and that approval from the CCI must be obtained prior to the approval…
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An Argument in Favour of an Effectively Mandatory CCI Approval Under Section 31(4) of the IBC – Part I
[Mayank Udhwani and Ragini Agarwal have recently graduated from National Law University, Jodhpur] The introduction of section 31(4) through the Insolvency and Bankruptcy (Second Amendment) Act, 2018 was intended to fine tune the workings of the Insolvency and Bankruptcy Code, 2016 [‘IBC’]. The clause provides that the resolution applicant is required to obtain necessary statutory…
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Re-Inventing the Supreme Court’s Ruling in Innoventive Industries
[Ragini Agarwal is a graduate from National Law University, Jodhpur. The author would like to thank Mayank Udhwani for his inputs on the article.] Innoventive Industries v. ICICI Bank (2017) was the first landmark Supreme Court judgment that explained the ethos of the newly introduced Insolvency and Bankruptcy Code, 2016 (“IBC”) as a code that…
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Amendment to Section 7 of The IBC: A Well-Intentioned Constitutional Fallacy?
[Ridhi Arora and Hitoishi Sarkar are III Year B.A. LL.B (Hons.) students at Gujarat National Law University] Section 3 of the Insolvency and Bankruptcy (Amendment) Act, 2020 (‘Amendment’), added certain provisos to section 7 of the Insolvency and Bankruptcy Code, 2016 (‘Code’) whereby special conditions were added for real estate allottees to qualify as a…
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ARCs and Insolvency Resolution Plans: The Enigma of Equity vs Debt
[Sikha Bansal is a Partner at Vinod Kothari & Company] A regulatory framework for asset reconstruction companies (ARCs) was introduced in India through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). This intended to put in place a system for clearing up non-performing assets (NPAs) from the…
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Applicability of the Limitation Act to the IBC: The Curious Case of Veer Gurjar
[Yashika Gupta is a 5th year B.A., LL.B. (Hons.) student at Hidayatullah National Law University, Raipur] On 14 August 2020, the Supreme Court (“SC”), yet again, cleared the air on the applicability of the Limitation Act, 1963 (“Limitation Act”) to the Insolvency & Bankruptcy Code, 2016 (“the Code”). In Babulal Varsharji Gurjar v. Veer Gurjar Aluminium…
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Audio-Perspectives on Bankruptcy Law during the Pandemic
In times of acute financial distress, such as these, one might expect to see bankruptcy practitioners and scholars to be the busiest. Bankruptcy law is often used as a tool to mitigate and deal with the impact of financial distress. As financially distressed firms and creditors seek the refuge of the law for debt recovery…
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NCLT’s Riddled Take on Enforcement of Foreign Awards under the IBC
[Sridutt Mishra is a 5th year student and Parthsarthi Srivastava is a 4th year student, both at National Law University Odisha] The Insolvency and Bankruptcy Code, 2016 (‘IBC’) has always witnessed friction with respect to claims arising out of arbitration. In 2018, the Supreme Court settled the highly contested issue of whether an arbitral award…
