[Rongeet Poddar is a final year B.A. LLB (Hons.) student at the West Bengal National University of Juridical Sciences] The National Company Law Appellate Tribunal (NCLAT) has enabled a Dutch Administrator appointed by the Noord District Court in Holland to participate in the meetings of the Committee of Creditors (CoC) constituted for the corporate insolvency resolution process (CIRP) of Jet...
Participation of Mutual Funds and Insurance Companies under the RBI’s Stressed Assets Framework
[Sachin Santuka is a B.B.A LL.B. candidate at the National Law University Odisha] After the Supreme Court in Dharini Sugars v Union of India struck down the Reserve Bank of India (RBI) circular dated 12 February 2018, the RBI on 7 June 2019 introduced a revised framework for the resolution of stressed assets. The provisions of the framework are applicable to Scheduled Commercial Banks, All India...
Construction of Exclusive Jurisdictional Clauses: Are Insolvency Proceedings Covered?
[Abhishek Jamalpur is a 4th year student at the National University of Advanced Legal Studies] The National Company Law Appellate Tribunal (NCLAT) in Excel Metal Processors Limited v. Benteler Trading International GMBH and Anr confronted an interesting issue. The question was whether an exclusive jurisdiction clause in a commercial contract covers insolvency proceedings initiated under the...
The Murky Case of Aviation Insolvency in India
[Nikhil Gupta is a 5th year BA-LLB (Hons.) student at the National University of Advanced Legal Studies, Kochi] The Jet Airways crisis primarily occurred due to the default in the unpaid lease amounts owed to several aircraft lessors. Jet’s fleet consisted of around 119 Boeing planes out of which about 100 were leased from lessor companies such as Avolon, GE Capital Aviation Services and Aercap...
Videocon Case: The Doctrine of Substantial Consolidation
[Harshit Agrawal is a B.A. LL.B. (Hons.) student at Dr. Ram Manohar Lohiya National Law University, Lucknow] Some of the biggest challenges faced by the Insolvency and Bankruptcy Code, 2016 (IBC) in India are to get a fair value for the stressed industries as a going concern keeping in mind the interest of the creditors. The problem becomes more aggravated in the ‘group company’ situation where a...
Home-Buyers in the IBC: Square Pegs in Round Holes?
[Sikha Bansal is a Senior Associate at Vinod Kothari & Company and can be reached at [email protected]] The ruling of the Supreme Court in Pioneer Urban Land and Infrastructure vs. Union of India comes as a breather for home-buyers, as it upholds the constitutional validity of the amendments made last year to section 5(8) of the Insolvency and Bankruptcy Code, 2016 (IBC). Section...
Impact of Recent Amendments to the Insolvency and Bankruptcy Code
[Ashwin Gowda and Supreme Waskar are corporate lawyers in Mumbai. The views hereunder are personal] With the Insolvency and Bankruptcy Code (Amendment) Act, 2019 being notified on 6 August 2019, it would be important to discuss the changes introduced through the Amendment as it intends to address the critical issues in the corporate insolvency resolution framework, including one pursuant to the...
Initiation of CIRP against a Government Company: NCLT Faces another Conundrum
[Rongeet Poddar is a final year B.A. LLB (Hons.) student at West Bengal National University of Juridical Sciences, Kolkata] In Harsh Pinge v. Hindustan Antibiotics Limited, the two members of the National Company Law Tribunal (NCLT) Mumbai bench have laid down contrary opinions in a case concerning the admission of an insolvency plea by an operational creditor against Hindustan Antibiotics...
Implementing Pre-packaged Insolvency in the Indian Context: Challenges and Suggestions
[Akhil Kumar is a fifth year BA LLB (Hons.) student and Ayushi Singh a fourth year BA LLB (Hons.) student, both at NUALS, Kochi] The Ministry of Corporate Affairs has been considering the introduction of a pre-packaged insolvency process to the Insolvency and Bankruptcy Code, 2016 and has invited comments from stakeholders. The proposal is in line with the objectives of the code to ensure...
The IBC Amendment Bill: Defending the Design of the IBC
[Shreya Prakash is the Coordinator of the Vidhi Bankruptcy Research Programme] The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 passed by Parliament last week proposes key amendments to the Code, to reduce uncertainty in the market on issues that go to the heart of the design of the scheme of the Code. While the Bill proposes various amendments to reduce delays in the process, and binds...
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