[Bhavin Gada is a Partner at Economic Laws Practice, Advocates and Solicitors (“ELP”), and Manendra Singh is a Senior Associate at ELP. The views and opinions expressed are those of the authors and do not reflect the view of their firm nor do they constitute any legal opinion/ On October 3, 2018 the Securities and Exchange Board of India (“SEBI”) notified the SEBI (Appointment of Administrator...
Resolving IL&FS: Desperate Times Call for Desperate Measures
[Manaswi Agarwal and Aayush Mitruka graduated from ILS Law College, Pune and are currently working with law firms in Mumbai and Delhi respectively. They can be reached at [email protected] and [email protected]] In a previous post we had analysed the efficacy of the Insolvency and Bankruptcy Code, 2016 (IBC) as compared with the scheme of arrangements mechanism under the...
Corporate Insolvency: Boundaries of Operational Debt: Part 1
[Job Michael Mathew is V year student at NALSAR University of Law, Hyderabad] The Insolvency and Bankruptcy Code 2016 defines an “operational debt” in section 5(21) as “aclaim in respect of the provision of goods or services including employment or a debt in respect of the payment of dues arising under any law for the time being in force and payable to the Central Government, any State Government...
Section 14 of the IBC: Discontinuance of Arbitral Proceedings
[Ashish Rana is an Advocate on Record in Supreme Court of India. The author thanks Shatakshi Singh for assistance] The Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted by the Parliament with a view to codify the existing framework of insolvency and bankruptcy which comprised of scattered provisions and mechanisms under the different legislation. Section 14 of the IBC provides for the...
Resolving IL&FS: IBC vs Schemes of Arrangement
[Aayush Mitruka and Manaswi Agarwal 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].] Since August 2018 Infrastructure Leasing and Financial Services Limited (IL&FS) has been in headlines for having missed several debt payments deadlines. The rapid...
Essar Steel Case: Supreme Decodes Section 29A of the IBC
Background In its ruling in ArcelorMittal India Private Limited v. Satish Kumar Gupta, the Supreme Court has laid down the much-needed jurisprudence involving section 29A of the Insolvency and Bankruptcy Code, 2016. Section 29A was inserted in the Code with effect from 23 November 2017 and has been the subject matter of at least two rounds of amendments thereafter. The provision makes ineligible...
Enabling Going Concern Sale in Liquidation
[Vinod Kothari and Sikha Bansal are at Vinod Kothari & Company and can be reached at [email protected]] The amendments to the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”), introduced on 28 March 2018 by incorporating a change in regulation 32 of the Liquidation Regulations, made it explicitly possible for the...
Drawing the Line between Corporate Debtors and Personal Guarantors
[Partha N. Mansukhani is a fifth-year B.A. LL. B (Hons.) student at Symbiosis Law School, Pune] The Supreme Court in State Bank of India v. V. Ramakrishnan & Anr. held that an order of moratorium passed under section 14 of the Insolvency & Bankruptcy Code, 2016 (“Code”) will exclusively apply to the corporate debtor against whom an insolvency application has been admitted by the...
Fast Track Debt Resolution Programme – Achilles Heel Of The Insolvency And Bankruptcy Code
[Tushar Kumar is a 4th Year BA LLB (Hons.) student at Dr. Ram Manohar Lohiya National Law University, Lucknow] The Ministry of Finance, in July 2018, accepted the recommendations of a committee constituted for review on Non-Performing Assets of Public Sector Banks, headed by Sunil Mehta (Non-Executive Chairman of Punjab National Bank) proposing “Project Sashakt”, calling for a five-tier approach...
The Rise and Fall of the Financial Resolution and Deposit Insurance Bill
[Apoorv Madan and Rushil Anand are fourth year B.B.A. LL.B. (Hons.) students at Jindal Global Law School in Sonipat] Background It may be considered common knowledge, at this time, that failure of some financial institutions can have far-reaching implications on economies, sometimes resulting in full-blown financial crises. Further, because of the increasingly interconnected and globalised world...
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