(The following guest post is contributed by Mridul Godha, a third-year student at the National Law University, Jodhpur) The Joint Committee on the Insolvency and Bankruptcy Code of the Lok Sabha was much concerned about the welfare of workmen. “Workers are the nerve centre of the company. In the event of any company becoming insolvent or bankrupt, the workmen to get affected adversely and...
Companies Act, 2013: Schemes and Winding-Up Provisions Operational
Although the Companies Act, 2013 was enacted more than three years ago, its provisions have been brought into effect in a phased manner. One of the important chunks of the new legislation relating to schemes of arrangement and winding up were yet to be brought into force. However, this position has since changed because the Ministry of Corporate Affairs (MCA) issued a notification on December 7...
Corporate Insolvency Resolution Process under the Bankruptcy Code: Relevant Provisions Notified
[The following guest post is contributed by Shikha Bansal, under the aegis of Vinod Kothari & Company. She can be contacted at [email protected]] The Ministry of Corporate Affairs, by way of Notification no. S.O. 3594(E) dated 30 November 2016, has notified 1 December 2016 as the date for commencement and enforcement of certain core sections of the Insolvency and Bankruptcy Code...
Repeal of SICA
[The following guest post is contributed by Mani Gupta, who is a partner at Sarthak Advocates & Solicitors, New Delhi. Views expressed here are personal and do not reflect the firm’s views.] By way of two notifications dated November 25, 2016 (“Repeal Notification”), the Ministry of Finance has appointed December 1, 2016 as the date on which the provisions of Sick Industrial Companies...
NCLT: Revolutionizing the Realm of Corporate Litigation
[The following post is contributed by Shruti Khetan, who is a student at the West Bengal National University of Juridical Sciences] After a decade-long wait, the National Company Law Tribunal (‘NCLT’) and its appellate body, the National Company Law Appellate Tribunal (‘NCLAT’) have finally been constituted under sections 408 and 410 of the Companies Act, 2013 (‘Act’) with effect from June 1...
Supreme Court Resolves Conflict Between Companies Act and SICA
[The following guest post is contributed by Aditi Jhunjhunwala, who is a partner at Vinod Kothari & Co. The author can be contacted at [email protected].] In a recent ruling in the case of Madura Coats Limited v. Modi Rubber Ltd. & Anr., the question before the Supreme Court on appeal was: where an order for winding up is passed under the Companies Act and the company has made a...
Bidding Goodbye to Creditors’ Voluntary Liquidation
[The following post is contributed by Vinod Kothari of Vinod Kothari & Co. The author may be contacted at [email protected]] Voluntary winding up under the Companies Act, 1956 has been segregated into two different types, i.e. members’ voluntary winding up and creditors’ voluntary winding up. But the Companies Act, 2013 eliminated distinction between members’ voluntary winding up and...
Filling in the Gaps in the Insolvency and Bankruptcy Code – Cross Border Insolvency
[The following post is contributed by Aparna Ravi, who is a Bangalore-based lawyer and was a member of the Bankruptcy Law Reforms Committee. The views expressed here are personal.] One issue that is conspicuous by its absence in the Insolvency and Bankruptcy Code, 2016 (IBC), that recently got past both houses of Parliament and is now awaiting presidential assent, is cross border insolvency...
Supreme Court Resolves Conflict Between SARFAESI Act and Companies Act
In Pegasus Asset Reconstruction P. Ltd. v. Haryana Concast Ltd., the Supreme Court was concerned with a conflict between the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity ‘the SARFAESI Act’) on the one hand and the Companies Act, 1956 on the other. The specific conflict was identified as follows: Whether a Company Court, directly...
Bankruptcy Code on Non-Corporate Insolvency and Bankruptcy
[The following guest post is contributed by Vinod Kothari & Niddhi Parmar of Vinod Kothari & Co] The Bankruptcy Laws Reforms Committee (“BLRC”) presented its final report (“Final Report”) to the Government of India on November 4, 2015. This Final Report is divided into 2 parts, i.e. Volume I and Volume II comprising the text of the findings and recommendations and the draft Insolvency and...
Recent Comments