[Surya Rajkumar is a BA LLB student at Jindal Global Law School] The Reserve Bank of India (RBI) had on 7 June 2019 issued its revised circular on the resolution of stressed assets following the decision of the Supreme Court of India in Dharini Sugars and Chemicals Limited v. Union of India, (2019) 5 SCC 480, in which it quashed the RBI’s previous circular dated 12 February 2018 as ultra vires...
Insolvency Proceedings for Conglomerate: Questions and Way Forward
[Piyush Rathi and Saksham Agrawal are 4th Year B.A. L.L.B students at NALSAR University of Law] A majority of large scale businesses today grow around a parent company that branches out into a group of companies, each of which performs a specific function. Such a structure in the form of a conglomerate provides for administrative convenience to the managers of the companies along with a range of...
Status of Arbitration Proceeding and Award during Moratorium
[Jannhvi Bhasin is a commercial & corporate advocate specializing in insolvency law at Kesar Dass B. & Associates and Akshay Sharma is a final year B.A.LLB (Hons.) student at National University of Study and Research in Law, Ranchi] The Insolvency and Bankruptcy Code, 2016 (IBC), which is a complete code in itself and provides for the initiation of a corporate insolvency resolution...
NCLAT Decision in Essar Steel Insolvency Proceedings: A Radical Stance?
[Ashwin Mathew is with Mansukhlal Hiralal & Co, Mumbai] The National Company Law Appellate Tribunal (NCLAT) on 4 July 2019 laid down important principles on the corporate insolvency resolution process in Standard Chartered Bank v. Satish Kumar Gupta which related to the insolvency proceedings of Essar Steel India Limited, the corporate debtor, under the Insolvency and Bankruptcy Code, 2016...
Dutch Order on Jet Airways: UNCITRAL Model Law the Need of the Hour?
[Syamantak Sen and Vivek Badkur are third-year law students at the National Law Institute University, Bhopal] The State Bank of India, Gaggar Enterprises and Shaman Wheels, a few of the many creditors of the grounded Jet Airways, i.e., the corporate debtor, filed petitions before the Mumbai bench of the National Company Law Tribunal (NCLT) under section 7 of the Insolvency and Bankruptcy Code...
Battle for Claiming Secured Assets: Insolvency Code vs SARFAESI Act
[Jai Bajpai is a student at the School of Law, University of Petroleum and Energy Studies, Dehradun] The objective of the Insolvency and Bankruptcy Code 2016 is to determine solutions for non-performing assets. It is to provide a collective mechanism for resolving insolvency within a framework of equity and fairness to all stakeholders and to preserve economic value in the process. It prescribes...
IBC and its Interface with Other Legislation: NCLT Clears the Air Again
[Rongeet Poddar is a final year BA LLB (Hons.) student at the West Bengal National University of Juridical Sciences, Kolkata and Yashika Gupta a fourth year BA LLB (Hons.) student at Hidayatullah National Law University] The Principal Bench of the National Company Law Tribunal (NCLT) has, in April this year, ordered the Securities and Exchange Board of India (SEBI) to de-attach the immovable...
RBI’s Revised Circular on Resolution of Stressed Assets
[Aayush Mitruka and Vividh Tandon graduated from ILS Law College, Pune and are currently working with law firms in Delhi and Mumbai respectively. They can be reached at [email protected] and [email protected]] The Reserve Bank of India (RBI) announced the much-awaited revised circular on resolution of stressed assets on 7 June 2019. It may be recalled that the Supreme Court had...
Trade Union as Operational Creditor: The Conundrum of Purposive Interpretation
[Vishal Hablani is a 4th year B.A.L.L.B. (Hons.) student at WBNUJS, Kolkata] Recently a judgment was passed by the Supreme Court in JK Jute Mill Mazdoor Morch v. Juggilal Kamlapat Jute Mills Company Ltd., wherein it was observed that a trade union could file an application in the capacity of an operational creditor, on behalf of workmen, for initiating the corporate insolvency resolution process...
Jurisdiction of Adjudicating Authorities over the Rejection of a Resolution Plan
[Piyush Rathi is a 4th year B.A. L.L.B student at NALSAR University of Law] Earlier this year in K. Sashidar v Indian Overseas Bank, the Supreme Court held that the adjudicating authorities, i.e., the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) have no jurisdiction or authority to analyse or evaluate the commercial decision of the Committee of...
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