[Rishabh Sinha is a 4th year B.A. LL.B. (Business Law Hons.) student at National Law University, Jodhpur] Introduction The National Company Law Appellate Tribunal (NCLAT) recently interpreted section 29A(d) of the Insolvency and Bankruptcy Code, 2016 (the Code) in Renaissance Steel India Pvt. Ltd. v. Electrosteels Steel India Ltd(10 August 2018). In this case the appellant had challenged the...
Resolution of Disputes in the Insolvency Code: Need for Appellate Review
[Shubham Jain and Vishvesh Vikram are BA.LLB (Hons.) students at National Law University Delhi] The limits of the discretion which can be exercised by a resolution professional with regard to adjudication of claims of creditors under the Insolvency Code remain to be tested. The National Company Law Appellate Tribunal (‘NCLAT’) in Saraogi Udyog v Vedanta Ltd (20 August 2018) refused to interfere...
Implications of India Adopting the UNCITRAL Model Law on Cross-Border Insolvency
[Aastha Kaushal (B.A.,LLB (Hons.)) and Saurav Gurjer (BB.A.,LLB (Hons.)) are 4thyear students from School of Law, Christ(Deemed to be University), Bengaluru] The management of international insolvencies are aimed to be resolved through a formal cross- border approach through the UNCITRAL Model Law on Cross-Border Insolvency (Model Law) which was approved by the United Nations General Assembly...
Supreme Court on the Scope of “Dispute” under the Insolvency and Bankruptcy Code
[Shourya Bari is an associate at a law firm in Mumbai having graduated from Jindal Global Law School, Sonipat (JGLS) in 2018 and Aditi Singh Kashyap is a 4th year B.A., LL.B. (Hons.) student at JGLS] The Insolvency & Bankruptcy Code (“IBC”) stipulates that the adjudicating authority (i.e. the National Company Law Tribunal or NCLT) would not admit an application by an operational creditor to...
The Continuing Saga of Homebuyers under Insolvency and Bankruptcy Code
[Karan Sahi is a lawyer and company secretary. He can be contacted at [email protected]] Introduction The recent slump in the real estate industry culminated in a grim situation where several major builders have been unable to complete their housing projects and hand over possession to their customers, leaving them in the lurch. As is the usual practice, many of these customers have taken...
Corporate Insolvency Proceedings: Can Interest be Claimed as a Part of Debt?
[Lyssa Maria Brito is a 4thyear B.B.A.L.L.B. (Hons.) student at School of Law Christ (Deemed to be University), Bengaluru] Introduction Earlier, in section 433(e) of the Companies Act, 1956, there was no distinction provided between a financial and an operational debt. Section 433(e) only provided that a company may be wound up by the court if it is unable to pay its debts. Therefore, the issue...
Interests of Homebuyers in Insolvency: Pre- and post-Ordinance
[Pulkit Khare is a 4th year B.A., LL.B. (Hons.) student at The National University of Advanced Legal Studies, Kochi] Homebuyers knocked on the doors of the Supreme Court under Article 32 of the Constitution on grounds that the corporate insolvency resolution process (CIRP) ignored the interests of vital stakeholders in building projects floated by Jaypee Infratech Limited (JIL) under the...
Limiting the Application of Moratorium to Personal Guarantors
[Karan Sangani is a 4th year B.A., LL.B. (Hons.) student at NALSAR University of Law in Hyderabad] One of the contentious issues under the Insolvency and Bankruptcy Code 2016 (“the Code”)relates to the applicability of the moratorium to the personal guarantors of the corporate debtors under section 14 of the Code. This was resolved by the Supreme Court recently in State Bank of India v. V...
Supreme Court Reiterates Position: I&B Code, 2016 Prevails Over the Income Tax Act, 1961
[Siddharth Kumar is a 3rdyear B.B.A. LL.B.(Hons.) student at Vivekananda Law School, Delhi] The Supreme Court of India, by its order dated 10 August 2018 in Pr. Commissioner of Income Tax v. Monnet Ispat and Energy Ltd. has held that the provisions of the moratorium stipulated under section 14 of the Insolvency and Bankruptcy Code, 2016 (“ Code”) would override anything inconsistent contained in...
Circumstances where Resolution Process can be Declared Void after Initiation
[Shreya Routh is an Executive at Vinod Kothari & Company] Gains through unjust fraud are never secured. The same goes for a company against which a process of corporate insolvency has been initiated. If the sole intent for initiation of a case is to defraud the creditors, there can be no possibility of revival of the company. The Insolvency and Bankruptcy Code, 2016 (the “Code”) comes with...
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