[Aayush Mitruka is a lawyer based in Delhi] The working of the Insolvency and Bankruptcy Code, 2016 (Code) has given rise to several challenges which need to be adequately addressed. The Code enables an operational creditor to initiate a corporate insolvency resolution process (CIRP) under section 9 provided it has complied with the requirement of sending a demand notice to the corporate debtor...
Settlement under the Insolvency and Bankruptcy Code, 2016: A Contrarian Perspective
[Shaleen Tiwari is an Advocate, Bombay High Court and a graduate of Hidayatullah National Law University, BA.LLB (Hons.), 2016] This post represents a contrarian view to the one adopted in a November 17, 2017 post titled ‘The Jeopardy of Settlements in Insolvency Cases’. Forming the cornerstone of the discussion here is the recent Supreme Court order in Uttara Foods and Feeds Private Limited v...
The Jeopardy of Settlements in Insolvency Cases
[Shreya Prakash is a BCL student at the University of Oxford. Earlier posts on the topic can be found here and here.] The Supreme Court in a recent order recommended that the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016 be amended to allow for settlement between an individual debtor and creditor after an insolvency petition has been accepted. With respect...
The Ability of Promoters to Bid for their Own Companies in Insolvency
[Anupam Choudhary is an Associate at Agram Legal Consultants, a law firm based in Mumbai. The views and opinions expressed are those of the author and do not reflect the view of his firm nor do they constitute legal opinion] Recently, there has considerable debate over whether promoters of insolvent companies can submit bids in the bidding process for their own companies. Recently, the Essar...
The (Negligible) Role of Shareholders in Corporate Insolvency
The Ministry of Corporate Affairs (MCA) yesterday issued a clarification stating that no resolution or approval of the shareholders of a debtor company will be required in order to give effect to a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC). It appears that stakeholders sought the MCA clarification on account of section 30(2)(e) of the IBC, which requires the resolution...
The Curious Case of Homebuyers under the Insolvency and Bankruptcy Code, 2016
[Manaswi Agarwal is an advocate based in Mumbai and Aayush Mitruka is an advocate based in New Delhi] One of the crucial issues which has emerged and is widely talked about under the Insolvency and Bankruptcy Code, 2016 (Code) relates to the interest of homebuyers under the Code. The jurisprudence developing around the Code does not adequately address their concerns, and therefore the law...
Why the RBI and IBBI Need to Work Together to Effectively Handle the Resolution of Stressed Assets
[Anirudh Gotety is a 4th year student pursuing B. B. A., LL. B. (Business Law Honours) at National Law University, Jodhpur. He can be contacted at [email protected]] The introduction of the Insolvency and Bankruptcy Code, 2016 (“IBC”) has led to a paradigm shift in the debt recovery mechanism in India. The IBC was a much-needed legislation given the plethora of central and state laws...
Process for Issuing a Demand Notice under the Insolvency and Bankruptcy Code
[Guest post by Satish Rai, who is an advocate based in New Delhi.] Introduction While the Insolvency and Bankruptcy Code, 2016 (the ‘Code’) gains momentum with evolving jurisprudence and continual changing of contours of provisions of the Code, a two-fold procedural requirement prescribed for the initiation of insolvency resolution process by an operational creditor requires greater scrutiny. The...
Conference on Insolvency Resolution and Cross-border Insolvency
[Announcement from the Centre for Transnational Commercial Law, National Law University, Delhi] The Centre for Transnational Commercial Law, National Law University Delhi, in collaboration with UNCITRAL, Insolvency and Bankruptcy Board of India and International Law Institute is organising a two-day conference to commemorate the 2017 UNCITRAL Asia Pacific Day. The theme of the event is Insolvency...
Strict Interpretation or Purposive Interpretation? Analysing the Sanjeev Shriya Case
[Guest post by Deeksha Malik, who is a is a fifth-year student of National Law Institute University, Bhopal. An earlier post on the topic is available here.] Ever since the Insolvency and Bankruptcy Code, 2016 (the “Code”) came into force, the Indian judiciary has been dealing with a number of cases that have required it to interpret various provisions of the Code. A review of the relevant...
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