[Himanshu Mene is an L.L.M Candidate (Specialization in Corporate Law) at Maharashtra National Law University, Nagpur] Introduction In the interest of transparency, Insolvency and Bankruptcy Board of India (“IBBI”) by way of a notification dated January 16, 2018 has issued a circular mandating that Insolvency Professionals (IPs) and all other professionals that are appointed by the IPs for the...
Abstention in a Committee of Creditors: Whether Counted for Voting
[Nitu Poddar is a Senior Associate at Vinod Kothari and Company, and can be reached at [email protected]] This post deals with the question whether, in determination of the assent at a Committee of Creditors (“CoC”) in corporate insolvency resolution proceedings, the votes of such creditors who (a) do not vote at all, at an electronic voting; or (b) abstain from voting at the meeting...
Limitation Act and Insolvency and Bankruptcy Code: Deductions from the Past and Present
[Priya Gupta is a 3rd year B.A.LLB (Hons.) student at Gujarat National Law University, Gandhinagar] Over the past few months, a considerable debate has emanated on whether the Limitation Act, 1963 is applicable to proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”). Although the answer has always resulted in being negative, the reasoning has been varying. The question first arose...
IBBI Amendments on Liquidation Value and Price Discovery
[Shaleen Tiwari is an Associate at Jerome Merchant & Partners, Mumbai] In an amendment dated 31 December 2017, the Insolvency and Bankruptcy Board of India (“IBBI”) amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). The amendment came close on the heels of the Insolvency and Bankruptcy (Code)...
Operational Creditors v. Financial Creditors: Evolution of Differences
[Shubham Sancheti is a 4th year B.A., LL.B. (Hons.) student at NALSAR University of Law, Hyderabad] The Insolvency and Bankruptcy Code, 2016 [“Code”] has had its maiden anniversary but problems regarding its interpretation have continued since its inception. The segregation of the “operational creditor” from the “financial creditor” is one of the areas which still needs jurisprudential and...
Scope of Moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 – An Analysis
[Maneck Mulla is the Proprietor of M Mulla Associates, Mumbai] The prohibition contained in section 14 of the Insolvency and Bankruptcy Code 2016, (“the Code”) against the initiation and continuation of legal proceedings has recently been a topic of discussion in rulings of the National Company Law Appellate Tribunal (“NCLAT”) and the High Court of Allahabad and has now become an open question of...
Highlights of the Insolvency Amendment Bill, 2017
[Aayush Mitruka is a lawyer based in Delhi] In an attempt to debar certain unscrupulous promoters from regaining control over a distressed company, the Insolvency and Bankruptcy Code, 2016 (Code) was amended by way of a presidential ordinance in November 2017 (Ordinance). The new provision introduced rendered certain persons ineligible to be a resolution applicant. Much has been written and...
Public Depositors as Creditors under the Bankruptcy Code: A Matter Left Unsettled
[Shashank Chaddha and Deeksha Malik are fourth and fifth year students, respectively, at National Law Institute University, Bhopal. They can be reached at [email protected] or at [email protected].] Over the past few months, the orders of the adjudicating authorities under the Insolvency and Bankruptcy Code, 2016 (“Code”) have provided much needed jurisprudence on the new insolvency...
NCLT Kolkata Rules on Non-Defaulting Promoters
[Saurav Roy is a 4th-year student and Lisa Mishra a 3rd-year student at ILS Law College, Pune] The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 (“the Ordinance”) was enacted to, among other things, override the actions of unscrupulous promoters who seek to buy back company assets at a throw-away price, as compared to what is actually owed to the lenders. However, the Ordinance did...
Insolvency Code: Beneficial Proceedings Relating to Corporate Debtor outside the Scope of Moratorium
[Aayush Mitruka is a lawyer based in Delhi] The Delhi High Court’s ruling in the case of Power Grid Corporation of India Limited Jyoti Structures Limited (11 December 2017) assumes importance because it is one of the very few decisions interpreting section 14 of the Insolvency and Bankruptcy Code, 2016 (Code) that deals with moratorium. In a significant outcome, the Court travelled beyond the...
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