[Guest post by Enakshi Jha, who is a graduate from NALSAR University of Law and is currently working at a corporate law firm in Mumbai] The principal benefit of a creditor controlled insolvency law is the efficiency it brings to the market and the advantages it holds for entrepreneurship. First, as a model spearheaded by the persons whose money is at stake (section 6 of the Insolvency and...
Supreme Court Affirms Creditor-Friendly Nature of Insolvency Law
Background The Supreme Court yesterday delivered its first substantive ruling under the Insolvency and Bankruptcy Code, 2016 (the “Code”) in Innoventive Industries Limited v. ICICI Bank. Incidentally, this relates to the first corporate insolvency case to be admitted by the National Company Law Tribunal (“NCLT”) after the Code came into effect in December 2016. The Supreme Court rejected a...
Applicability of the Limitation Act to Insolvency Proceedings
[Guest post by Ashish Virmani & Tanisha Khaitan, both lawyers based in New Delhi and graduates of National Law University Jodhpur] The National Company Law Appellate Tribunal (“NCLAT”) in a recent judgement dated 11 August, 2017 in Neelkanth Township vs. Urban Infrastructure held that the Limitation Act, 1963 is not applicable to proceedings under the Insolvency and Bankruptcy Code, 2016 (the...
Corporate Insolvency Resolution Process and Implications on Securities Laws: Recent Changes
[Guest post by Yogesh Chande, Partner, Shardul Amarchand Mangaldas. View of the author are personal] SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Takeover Regulations”) The newly inserted provision in regulation 10 of the Takeover Regulations, notified on 14 August 2017, exempts an acquisition pursuant to a resolution plan approved under section 31 of...
Supreme Court Settlement Orders in Insolvency Cases: Opening of Pandora’s Box?
[Guest post by Anupam Choudhary, who 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.] The Supreme Court has recently, in two orders, allowed settlement to be recorded between the parties even when the insolvency application had already been...
An Analysis of the First Insolvency Resolution Scheme Under the Insolvency and Bankruptcy Code
[Guest post by Enakshi Jha, who is a graduate from NALSAR University of Law and is currently working at a corporate law firm in Mumbai] Factual Matrix In the present case, Synergies-Dooray Automotive Limited (“SDAL”) was the corporate debtor. Ms. Mamta Binani was appointed as the Resolution Professional and is the applicant in the present dispute and had filed an application against all the...
A Guide for Filing Form C by Flat Buyers in the Jaypee Infratech Insolvency Matter
[Guest post by Abhishek Dubey, a corporate lawyer based out of Delhi NCR. This document is merely a guidance for fellow flat buyers of Jaypee Wishtown and not legal advice. Flat buyers may consult their own legal counsel before taking any action. Views are personal. Some of the background to the legal issues arising in this post are available here.] Thousands of flat buyers stuck in the Jaypee...
Amendment Creates a Third Class of Creditor Under the Insolvency and Bankruptcy Code, 2016
[Guest post by Aayush Mitruka, a lawyer based in Delhi] The Insolvency and Bankruptcy Board of India (“IBBI”) on 16 August, 2017 amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 and...
Winding-up under Section 271(a) of the Companies Act and its Impact on the Insolvency and Bankruptcy Code
[Guest post by Anirudh Gotety, who is a 4th year student pursuing B.B.A., LL.B. (Business Law Honours) at National Law University, Jodhpur] Before the introduction of the Insolvency and Bankruptcy Code, 2016 (the ‘Code’), the winding up of a company took place solely under the Companies Act, 1956 (the ‘1956 Act’). The 1956 Act allowed companies to be wound up voluntarily (Chapter III of Part...
Some Open Questions under the IBC: Debt Restructuring Schemes and Prepacks
[The following is a guest post contributed by Aparna Ravi, who is Counsel at Samvad Partners. The views expressed here are personal and comments are welcome.] In the high-profile insolvency case of Essar Steels Ltd., that was admitted by the Ahmedabad Bench of the National Company Law Tribunal (“NCLT”) last week, two objections raised by Essar against admission of the insolvency application were...
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