Tag: Insolvency
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Status of Homebuyers in Corporate Insolvency: Will Ordinance Assure Relief and Returns?
[Swaha Sinha is a 3rd year B.A. LL.B. (Hons.) student at Symbiosis Law School, Pune] The Insolvency and Bankruptcy Code (the Code) has been subject to endless scrutiny and suggested changes, with some being implemented through recent amendments. Most strikingly, the Ministry of Corporate Affairs constituted an expert panel to recommend amendments to this ground-breaking statute,…
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Section 29A of the Insolvency Code: A Critique of its Impact & Recent Developments
[Varun Khandelwal is a Third Year B.A., LL.B. (Hons.)student at The W. B. National University of Juridical Sciences (NUJS)] Introduction The insolvency regime in India is still in its nascent stage and it has not been too long since the Bankruptcy Law Reforms Committee submitted its report, which laid the foundation of the Insolvency and Bankruptcy…
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Jaypee Infratech Case: Discerning the Reach of Avoidance Proceedings
[Sikha Bansal is a Senior Associate at Vinod Kothari & Company, and can be reached at sikha@vinodkothari.com or resolution@vinodkothari.com] In IDBI Limited v. Jaypee Infratech Limited (order dated May 16, 2018), the National Company Law Tribunal, Allahabad Bench (NCLT), dealt with a crucial aspect of insolvency proceedings, namely vulnerable transactions. The resolution professional (RP) of the corporate…
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Financial Exposure of Secured Creditors and the Relevance of Vertical Comparison in Resolution
[Richa Saraf is a Legal Advisor at Vinod Kothari Consultants Pvt. Ltd.] An effective conduct of the corporate insolvency resolution process calls for an insight into the ranking of claims of various creditors. In most resolution plans, one finds that the financial creditors are paid a particular value as settlement of claims, and no specific provision…
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Liquidation Before Resolution?
[Richa Sarafis a Legal Advisor at Vinod Kothari Consultants Pvt. Ltd.] Historically, it has taken an unduly long period of time to wind up or liquidate a company in India as compared to other countries. Such lengthy time-frames are detrimental to the interest of all stakeholders. The process ought to be time-bound, aimed at maximizing…
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Binani Cements Insolvency: NCLT Triggers (Yet Another) Auction
The insolvency of Binani Cements has triggered a number of legal issues involving the Insolvency and Bankruptcy Code, 2016. One of those relates to the manner in which the resolution plan has to be approved and implemented, especially in the context where a number of plans have been proposed. In this case, the company entered…
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Home Buyers as Financial Creditors: Desperate Improvisation and its Ramifications
[Rishabh Sant Tiwari is a 4th year B.A. LL.B. (Business Law Honours) student at National Law University, Jodhpur, India] The recently released Report of the Insolvency Law Committee (“Committee Report”) has brought about seminal changes in the Insolvency and Bankruptcy Code, 2016 (“IBC”). The most remarkable highlight of the Committee Report is its recommendation to…
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Liquidation Sale as a Going Concern
[Vinod Kothari is an insolvency practitioner] ] The amendments introduced on 28 March 2018 to the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (the “Regulations”) have made a seemingly small change to regulation 33 of the Regulations, permitting the liquidator to sell the “corporate debtor as a going concern”. This seemingly minor…
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Disclosure Requirements Under the Insolvency and Bankruptcy Code: SEBI’s Proposed Amendments
[Mallika Sen is a 2nd year B.A. LL.B. (Hons.) student at the National Law School of India University, Bangalore and Rudresh Mandal is a 3rd year B.A. LL.B. (Hons.) student at the NALSAR University of Law, Hyderabad. Introduction On March 28, 2018, the Securities and Exchange Board of India (‘SEBI’) released a discussion paper on…
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Out-of-Court Settlements under the Insolvency Regime
The question of whether the creditors and an insolvent corporate debtor can enter into an out-of-court settlement that results in the withdrawal of the insolvency process has been a vexed one. The issue has received the attention of the Supreme Court on at least three occasions, as previously discussed on this Blog (here, here, here…
