[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...
Liquidation Regulations: Far-Reaching Changes to Make Liquidations Faster, Smoother
[Vinod Kothari is an insolvency practitioner at Vinod Kothari & Co and can be reached at [email protected]] The attention that reforms in liquidation regulations has received, relative to what has gone into the case of resolution, is far lesser than deserved, given the percentage of the resolution cases that slip into liquidation. Most of the major liquidations initiated 12 to 18...
NCLAT’s Order in Essar Steel: Implications of Proposed Amendments to the IBC
[Jubin Jay is a 5th year BBA.LLB student at National Law University Odisha] The National Company Law Appellate Tribunal (NCLAT) on 4 July, 2019 passed an order in the Essar Steel insolvency case (Standard Chartered Bank v. Satish Kumar Gupta). Extending to more than a hundred pages, the appellate body heard appeals from various operational creditors, banks and the state after the committee of...
Will the RBI’s Revised Circular on Stressed Assets Sustain its Validity?
[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...
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