Tag: Insolvency
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Why the IBC Bill’s Fix for Waterfall is a Half-Measure?
[Subham Mangla and Dirshi Shah are 4th Year B.A. LL.B (Hons.) and B.B.A LL.B (Hons.) students, respectively, at Gujarat National Law University, Gandhinagar] The order of priority for the distribution of assets during liquidation, colloquially known as the “waterfall mechanism,” is the bedrock of any modern insolvency regime. In India, this critical function is enshrined under section 53 of…
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Third-Party Funding as Catalyst for Effective Avoidance Recoveries under IBC
[Naman Aggarwal is a 5th year B.A. LL.B. (Hons.) student at Dr. Ram Manohar Lohiya National Law University, Lucknow] The Insolvency and Bankruptcy Code, 2016 (IBC) has transformed India’s legal regime on addressing corporate distress by prioritising timely revival, value maximisation and fairness to creditors. Since its introduction, the IBC has effected the resolution of stressed assets…
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The Uneasy Coexistence of PMLA and IBC: Mapping Judicial Interplay
[Harsh Bansal is a final year B.A., LL.B. (Hons.) student at Rajiv Gandhi National University of Law] The overlap between the Prevention of Money Laundering Act, 2002 (PMLA) and the Insolvency and Bankruptcy Code, 2016 (IBC) has repeatedly troubled Indian courts and academics alike. Both statutes contain sweeping non-obstante clauses: section 71 in PMLA and section 238 in…
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Furnace Fabrica: Analysing the Interplay of the IBC and the EPFO Act
[Vanshika Sharma and Ayush Singhal are 4th year B.A., LL.B. (Hons.) students at NALSAR University of Law, Hyderabad] The Insolvency and Bankruptcy Code, 2016 (“IBC”) was introduced with the primary objective of a time-bound resolution of corporate insolvency. However, since its inception, its operational mechanics have been challenged by an array of statutory overlaps. A notable overlap is the…
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Equitable Overreach?: Re-examining Article 142 in the Context of the IBC (Part – II)
[Srujan Sangai is a V year B.A. LLB student at National Law School of India University, Bengaluru. Part I of this post is available here] Reframing Equity’s Domain within the IBC Theoretical Foundations: Interpreting “Fairness” through Legal Positivism and Economic Efficiency In the context of the IBC, the “law” refers to the explicit, codified rules, procedures, timelines, and…
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Equitable Overreach?: Re-examining Article 142 in the Context of the IBC (Part – I)
[Srujan Sangai is a V year B.A. LLB student at National Law School of India University, Bengaluru] The Supreme Court of India has been invoking Article 142 of the Constitution to settle insolvency disputes in the recent past. From 2016 until 2024, the Supreme Court has invoked Article 142 in 36 cases to adjudicate insolvency matters. More recently, in Kalyani…
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Reshaping Insolvency Practice: The Fourth Amendment to CIRP Regulations
[Bhoomi Goenka and Saksham Gupta are 3rd year B.B.A., LL.B. (Hons.) students at National Law University Odisha] In May 2025, the Insolvency and Bankruptcy Board of India (IBBI) introduced the fourth amendment to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations), with the objective of enhancing flexibility, transparency, and efficiency in corporate insolvency resolutions. Notably, the amended regulations grant resolution…
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Deadline or Dead End? Judiciary Tightens the Screws on IBC’s Compliance
[Abhishek Pandey and Aditya Mittal are 4th year B.A. LL.B. (Hons.) students at Hidayatullah National Law University, Raipur] In the corporate insolvency regime, time is everything. The Insolvency and Bankruptcy Code (Code) was introduced in 2016 with a vision to reshape India’s insolvency regime by focusing on swift, time-bound processes that maximize the interests of all stakeholders. While after…
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Amendments to the IBBI Regulations on Corporate Insolvency: The Future of Transparency
[Ayush Raj is a 4th year BA LLB student at Gujarat National Law University] On 4 July 2025, the Insolvency and Bankruptcy Board of India (IBBI) issued the Fifth Amendment to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations (CIRP Regulations), with immediate effect. These amendments principally revise regulations 36 and 38 of the 2016 CIRP Regulations…
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The Misstep in Rakesh Bhanot: Decoding Section 138 and IBC
[Kevin Preji and Sanjana Rao are 3rd year B.A., LL.B. (Hons.) students at National Law School of India University, Bangalore] On April 1, 2025, the Supreme Court, in the case of Rakesh Bhanot vs Gurdas Agro Pvt Ltd held that the proceedings for cheque bounces (under s 138 of the Negotiable Instruments Act, 1881 (‘NI Act’)), would not be stayed by the…