[The following post is contributed by Deep Shah, 3rd Year and Rahul Sibal, 4th Year , students of NALSAR, Hyderabad. They can be contacted at [email protected] and [email protected]. In this post, they undertake a comparative analysis of provisions concerning antecedent transactions under the recently enacted Insolvency and Bankruptcy Code, 2016, vis-à-vis the Insolvency Act, 1986 of...
NCLT Order Admitting Essar Steel Insolvency
In one of the first high profile cases under the Insolvency and Bankruptcy Code, 2016 (the “Code”), the Ahmedabad Bench of the National Company Law Tribunal (“NCLT”) yesterday issued its order admitting the insolvency petition brought by the State Bank of India (“SBI”) and Standard Chartered Bank (“SCB”) as financial creditors of Essar Steel Limited. The insolvency of Essar Steel had earlier...
What Should the Insolvency and Bankruptcy Code for SMEs be Like?
[Guest post by Rishi A, who is a Legal Analyst at Spotdraft.com] The Insolvency and the Bankruptcy Code (“IBC”), 2016 was a much-needed legislation in India for hastening the process of bankruptcy filing and to provide for a framework that would incorporate globally recognised standards for both creditors as well as debtors. However, right from its inception, there has been some discussionabout...
Supreme Court on Settlement of Insolvency Proceedings
[Guest post by Aayush Mitruka, a lawyer based in Delhi] The Supreme Court in a decision this week in Lokhandwala Kataria Construction Limited v Nisus Finance And Investment Managers, LLP allowed a settlement by entering into consent terms by the parties after the insolvency proceedings under section 7 of the Insolvency and Bankruptcy Code, 2016 (the “Code”) were admitted. The Supreme...
More on RBI’s Intervention in Matters of Corporate Insolvency
The Gujarat High Court judgment discussed in a post yesterday by a guest contributor, Saurav Roy, brings to the fore several tricky issues and questions relating to the extent to which the Reserve Bank of India (RBI) ought to be involved in matters relating to the resolution of corporate insolvency. While matters of insolvency are essentially within the purview of the National Company Law...
Gujarat High Court Rules on RBI’s Powers Relating to Corporate Insolvency
[Guest post by Saurav Roy, IV B.A.LL.B, ILS Law College, Pune.] Introduction Last week, the Gujarat High Court ruled on some interesting issues under the Insolvency and Bankruptcy Code 2016 (“IB Code”) while adjudicating upon a writ petition filed by Essar Steel Ltd., (“Essar”) against the Reserve Bank of India’s (“RBI”) decision to initiate insolvency proceedings against Essar and 11 other...
Insolvency & Bankruptcy Code: Arbitral Proceedings and Bona Fide Dispute
[Guest post by Puneet Dinesh, is a IV year student at the National Law University, Delhi. He can be reached at [email protected].] The Insolvency and Bankruptcy Code, 2016 (the ‘Code’) has given rise to some interesting legal questions. As previously discussed on this Blog (here and here), the interpretation of the term ‘dispute’ under section 5(6) of the Code has arisen multiple times...
Resolution Application by Operational Creditors: Interpretation of the Term “Dispute”
[Post by Nitu Poddar, Associate at Vinod Kothari & Company, Corporate Law and Resolution Division ([email protected]) Other posts on related topics can be found here and here.] To file an application under the Insolvency and Bankruptcy Code, 2016 (the Code), an operational creditor has to serve a demand notice on the corporate debtor ten days prior to the application. The corporate debtor...
NCLAT on the Definition of a “Dispute” Under the Insolvency and Bankruptcy Code
[Post by Shyam Pandya, who is a partner at Desai & Diwanji. Views are personal. Disclosure: The author represented the respondent in the matter, i.e., Mobilox Innovations Private Limited] In the context of a corporate insolvency resolution process initiated by an operational creditor against a corporate debtor under section 8 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), a corporate...
NCLAT Order under Section 7 of the Insolvency & Bankruptcy Code, 2016
[Post by Diksha Jain, who is a 5th year student at the National Law University, Jodhpur] The National Company Law Appellate Tribunal (NCLAT) in its order dated 15 May 2017 in Innoventive Industries Ltd. v. ICICI Bank has ruled on certain important requirements to be complied with while admitting an application filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (the Code). Section...
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