[Guest post by Aayush Mitruka, a lawyer based in Delhi.] Last month, the Supreme Court delivered a significant judgment under the Insolvency and Bankruptcy Code, 2016 (the “Code”) in M/s Surendra Trading Co. v. JK Jute Mills Co. Ltd & others and settled some vexed issues which were of considerable importance. The facts of the case do not merit a mention for the purposes of the present...
The NCLAT on the Ability of a Power of Attorney Holder to Initiate Insolvency Proceedings
[Guest post by Richa Saraf, Assistant Legal Advisor at Vinod Kothari & Co.] In Palogix Infrastructure Pvt. Ltd. v. ICICI Bank Ltd. (decided on 20 September 2017), the National Company Law Appellate Tribunal (“NCLAT”) held that a power of attorney holder is not authorised to present an insolvency application under sections 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). It is...
Supreme Court Decodes “Dispute” under the Insolvency and Bankruptcy Code
[Guest post by R. Jawahar Lal and Sanjeev Jain, who are Partners, and Apoorva Agrawal, who is an Associate, all at PRA Law Offices, New Delhi. Disclosure: PRA Law Offices represented Kirusa Software Private Limited (Operational Creditor) before the Supreme Court, the National Company Law Appellate Tribunal at New Delhi and the National Company Law Tribunal, Mumbai Bench.] Introduction The...
NCLAT Excludes Proceedings under the Constitution from Moratorium
[Guest post by Aayush Mitruka, a lawyer based in Delhi.] In an earlier post, I had discussed the moratorium provision (i.e., section 14) under the Insolvency and Bankruptcy Code, 2016 (the “Code”), the legislative intent behind the provision and its impact on proceedings for dishonor of cheques under the Negotiable Instruments Act, 1881. More recently, in Canara Bank v Deccan Chronicle Holdings...
Moratorium under the Bankruptcy and Insolvency Code: Impact on Proceedings for Cheque Dishonour
[Guest post by Aayush Mitruka, a lawyer based in Delhi. An earlier version of this post was published in the newsletter of ICSI – Pune chapter.] The Insolvency and Bankruptcy Code, 2016 (the “Code”) is an all-encompassing legislation which is, inter alia, aimed at a structured and time-bound process for insolvency resolution and liquidation. Chapter II (Part II) of the Code contains...
Director as “Any Person Aggrieved” under Insolvency and Bankruptcy Code
[Guest post by Vaidehi Shankar, Associate at Mundkur Law Partners, Bangalore. The views and opinions expressed herein are those of the author in her personal capacity and do not, in any way or manner, reflect the position or opinion of Mundkur Law Partners] On August 31, 2017, the Supreme Court delivered one of the first landmark judgments on the Insolvency and Bankruptcy Code, 2016 (Code) in...
Eligibility Criteria for Insolvency Resolution Professionals: A Critique
[Guest post by Lavanya Chawla, Batch of 2017, National Law School of India University, Bangalore] With more than 270 days gone by since the enactment of the Insolvency and Bankruptcy Code, 2016 (the Code), the time is ripe to analyse whether the Code has proved to be the magical wand it proclaimed to be. One of the new functionaries introduced by the Code is the Resolution Professional (RP)...
Liability of Personal Guarantors of a Corporate Debtor during the Corporate Insolvency Resolution Process
[Guest post by Param Pandya, Research Fellow, Corporate Law and Financial Law, Vidhi Centre for Legal Policy, New Delhi. The views expressed by the author are personal.] On September 6, 2017, the Allahabad High Court in the case of Sanjeev Shriya vs. State Bank of India (“Sanjeev Case”) decided the question of the liability of personal guarantors of a company where moratorium under section 14 of...
International Business Law Essay Competition
[Announcement posted on behalf of Verus, a law firm] Verus presents the Inaugural Edition of the REEMA RAY PRIZE IN INTERNATIONAL BUSINESS LAW 2017. The prize is instituted in memory of Reema Ray (1982-2013), who was a brilliant young corporate lawyer in one of the leading law firms in India. Her friends, family and colleagues remember her as a rare person with exceptional qualities of heart and...
Supreme Court’s Stay Order in the Jaypee Insolvency Case
It was only last week that the Insolvency and Bankruptcy Code, 2016 (the “Code”) and the insolvency proceedings initiated thereunder received a fillip from the Supreme Court in Innoventive Industries Limited v. ICICI Bank (discussed here). Within a matter of a few days, a contrary result emerged from the Supreme Court in Chitra Sharma v. Union of India which has struck a temporary blow to the...
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