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Search results: Insolvency and Bankruptcy Code, 2016

Delays and inconsistent treatment reduce RERA’s effectiveness, Amaresh Kumar Singh, HSA Advocates

Delays and inconsistent treatment reduce RERA’s effectiveness

By Amaresh Kumar Singh, HSA Advocates
RERA, or the Real Estate (Regulation and Development) Act, 2016 (act) and the Real Estate Regulatory Authority established under it, aimed to balance the interests of the various stakeholders in the real estate ecosystem,...
IBC and exclusions from committee of creditors 

IBC and exclusions from committee of creditors 

During the corporate insolvency resolution process (CIRP), the committee of creditors (COC) is the de facto board of the defaulting company. The COC is constituted after collating all the claims on the debtor, and...
NCLT proper forum for power purchase agreement insolvency, Abhishek Tripathi and Vedant Kumar, Sarthak Advocates & Solicitors

NCLT proper forum for power purchase agreement insolvency

By Abhishek Tripathi and Vedant Kumar, Sarthak Advocates & Solicitors
The Supreme Court has ruled that the National Company Law Tribunal (NCLT) has jurisdiction under the Insolvency and Bankruptcy Code, 2016 (IBC) in disputes involving Power Purchase Agreements (PPA). Gujarat Urja Vikas Nigam Limited...
IBC decides the fate of PPAs in insolvency, Abhirup Dasgupta and Bhawana Sharma, HSA Advocates

IBC decides the fate of PPAs in insolvency

By Abhirup Dasgupta and Bhawana Sharma, HSA Advocates
A power purchase agreement (PPA) is essential not only for the way a power project functions, but also for its very existence. There has, however, been significant uncertainty regarding the status of power generators...
Retrospective domestic measures and international investment protection, Puneeth Ganapathy, Lakshmikumaran & Sridharan

Retrospective domestic measures and international investment protection

By Puneeth Ganapathy, Lakshmikumaran & Sridharan
In two cases in 2020, Vodafone and Cairn Energy, India lost significant arbitral awards. These awards followed retrospective measures imposed on foreign investments, despite bilateral investment treaties (BIT) that protect foreign investors from unfair...
The committee of creditors and its commercial wisdom, Sonam Gupta, Sneha Jaisingh and Divyam Sharma, Bharucha & Partners

The committee of creditors and its commercial wisdom

By Sonam Gupta, Sneha Jaisingh and Divyam Sharma, Bharucha & Partners
The Insolvency and Bankruptcy Code, 2016 (code) was enacted to enable corporate insolvency resolution of financially stressed corporate debtors in a time bound manner, so as to maximise the value of their assets. The...
GST seizure and confiscation still causing problems, Surbhi Premi, Lakshmikumaran & Sridharan

GST seizure and confiscation still causing problems

By Surbhi Premi, Lakshmikumaran & Sridharan
Sections 129 and 130 of the Central Goods and Services Tax Act, 2017, have frequently raised problems. Section 129 provides for the detention, seizure and release of goods and conveyances in transit. Section 130...
Disadvantages faced by MSMEs in insolvency law, Gautam Khurana and Sanjeev Ahuja, India Law Offices

Impact of insolvency and bankruptcy code on MSMEs

By Gautam Khurana and Sanjeev Ahuja, India Law Offices
Micro, small and medium enterprises (MSME) contribute 8% to GDP, employ 106 million, that is 40% of the workforce, produce 45% of manufacturing output and 40% of total exports. While MSMEs play a vital...
Gambling laws- Interpretations and issues, L Badri Narayanan and Gopal Machiraju

Gambling laws: Interpretations and issues

By L Badri Narayanan and Gopal Machiraju, Lakshmikumaran & Sridharan
The Public Gambling Act, 1867 (Gambling Act), enacted prior to the constitution is the central law governing gambling in India. While under entry 34 of list II of schedule VII of the constitution, “betting...
Keeping the power on during insolvency, Abhishek Nath Tripathi and Vedant Kumar

Keeping the power on during insolvency

By Abhishek Nath Tripathi and Vedant Kumar, Sarthak Advocates & Solicitors
The National Company Law Appellate Tribunal (NCLAT) in Gujarat Urja Vikas Nigam Ltd (GUVNL) v Yes Bank Limited recently confirmed a National Company Law Tribunal (NCLT) decision restraining GUVNL from terminating the power purchase...
Satish Anand Sharma and Aniket Sawant, SNG & Partners, Liquidation

Assigning NRRAs and claims during liquidation

By Satish Anand Sharma and Aniket Sawant, SNG & Partners
While the Insolvency and Bankruptcy Code, 2016 (code), stipulates that the liquidation of a corporate debtor must be completed within one year from its commencement date, most liquidations continue beyond that period. Among other...
Anush Raajan,Swastika Chakravarti,Lakshmikumaran & Sridharan

Guarantors may be vulnerable to pandemic default risks

By Anush Raajan and Swastika Chakravarti, Lakshmikumaran & Sridharan
The government recognised the economic impact of covid-19 on businesses by enacting the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020. The ordinance, among other measures, inserted section 10A into the Insolvency and Bankruptcy Code,...
India Atma Nirbhar Bharat Scheme micro, small and medium enterprises

Lifeline for MSMES dragged down by pandemic

The pandemic and ensuing economic crisis have disproportionately impacted micro, small and medium enterprises (MSMEs). A large number of them face dire operational and financial constraints including a shortage of working capital, difficulty in...
Manoj Kumar and Shweta Bharti, Hammur balance Insolvency and Bankruptcy Code and Prevention of Money Laundering Act abi & Solomon

How to balance the IBC and the PMLA

By Manoj Kumar and Shweta Bharti, Hammurabi & Solomon
The Prevention of Money Laundering Act, 2002 (PMLA) seeks to prevent money laundering, to prosecute those committing money laundering and to recover and seize properties acquired by means of laundered money. However, the effective...
creditors

COVID-19, IBC suspension and operational creditors

By Shweta Bharti and Sukrit Kapoor,Hammurabi & Solomon
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 (ordinance), provides that no application to start a corporate insolvency resolution process (CIRP) in respect of a corporate debtor may be made for any default arising...
insolvency

How to implement pre-packaged insolvency

By Charanya Lakshmikumaran and Puneeth Ganapathy, Lakshmikumaran & Sridharan
Since last year, the government has been considering introducing pre-packaged insolvency schemes within the framework of the Insolvency and Bankruptcy Code, 2016 (IBC). With COVID-19 severely affecting the credit ecosystem, however, the right to...
Arbitration

Overlap between insolvency code and arbitration law

By Charanya Lakshmikumaran and Puneeth Ganapathy, Lakshmikumaran & Sridharan
Arbitral awards are treated as orders of a court and can be enforced as such, under the Civil Procedure Code, 1908 (CPC), subject to defences under the Arbitration and Conciliation Act, 1996. The Insolvency...
insolvency

Reverse insolvency to the rescue in housing projects

The National Company Law Appellate Tribunal (NCLAT) in Flat Buyers Association Winter Hills – 77, Gurgaon v Umang Realtech Pvt Ltd & Ors, brought by disaffected flat buyers of the Winter Hills project represented...
insolvency

NBFCs brought under purview of insolvency code

By Anisha Shroff and Sharanya Kundu, Samvad Partners
With the introduction of a codified law on insolvency and bankruptcy processes, restructuring jurisprudence entered a new era. While the new law focused on rehabilitating and restructuring stressed companies, restructuring processes involving financial service...
pmla

Harmonizing IBC and money laundering laws

By Ashwin Mathew and Gopal Machiraju, Lakshmikumaran & Sridharan
The interplay between the Insolvency and Bankruptcy Code, 2016 (IBC), and the Prevention of Money Laundering Act, 2002 (PMLA), has been the subject of much debate. In light of multiple conflicting decisions of various...
insolvency

Insolvency rules issued for financial services providers

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The presence of insolvency rules for non-financial companies in the form of the Insolvency and Bankruptcy Code, 2016 (IBC), and the lack of similar rules for financial companies led to a peculiar dichotomy. The...
claims

Resolution of disputed claims in insolvency process

By Charanya Lakshmikumaran and Gopal Machiraju, Lakshmikumaran & Sridharan
One of the key issues in the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (code), is the status and resolution of disputed claims. This has now been set to...
insolvency

Insolvency and related considerations for directors

By Shivaji Bhattacharya and Prateek Sharma, S&R Associates
Directors of a company in financial difficulty should be aware that their conduct may be subject to close scrutiny if the company falls into insolvency under the Insolvency and Bankruptcy Code, 2016, as amended....
proprietary

Sole proprietary concerns cannot file insolvency petitions

The National Company Law Tribunal (NCLT), Delhi in a recent judgment held that insolvency proceedings cannot be initiated by sole proprietary concern as the “sole proprietary concern” is not a person within the meaning...
Abhishek Dutta, Vineet Shrivastava and Aayushi Agarwal, Aureus Law Partners

Recent amendments to insolvency regulations

By Abhishek Dutta, Vineet Shrivastava and Aayushi Agarwal, Aureus Law Partners
With the introduction of The Insolvency and Bankruptcy Code (Amendment) Bill, 2019, on 24 July 2019 in the Rajya Sabha, the government has sought to amend the Insolvency & Bankruptcy Code, 2016. Earlier, the...
demergers

Choosing between business transfers and demergers

By Natashaa Shroff and Taranjeet Singh, Shardul Amarchand Mangaldas & Co
Until 2015, demergers were a popular form of divestment, where the business would be transferred under a court approved scheme as a going concern to the acquirer. Despite the fact that a typical scheme...
creditors

Creditors browbeat debtors with bankruptcy threat

By Supriya Majumdar, Vidhii Partners
“When secured creditors like the respondent are driven from pillar to post to recover what is legitimately due to them, in attempting to avail of more than one remedy at the same time, they...
Deccan Chronicle

Many hurdles in Deccan Chronicle insolvency

The legal team that advised on the Deccan Chronicle Holdings insolvency had to contend with multiple issues and challenges. The National Company Law Tribunal (NCLT) approved the resolution plan put forward by SREI Multiple...
India Business Law Journal

Historic mandate

Challenges abound as India’s new government takes charge Applause for the efficient running of the recent elections has been loud and long. With 900 million potential voters, 12 million polling workers and a million polling...
insolvency

Insolvency code: Judicial trends

By Abhishek Tripathi and Avantika Shukla, Sarthak Advocates & Solicitors
Abhishek Tripathi and Avantika Shukla look at role of adjudicating bodies in IBC's evolution The Insolvency and Bankruptcy Code, 2016 (IBC), is considered to be among the biggest achievements of the National Democratic Alliance (NDA)...
insolvency

Investing through insolvency code

By Sanjay Asher and Nikhil Kaul, Crawford Bayley & Co.
IBC has created opportunities for equity and debt investors alike, write Sanjay Asher and Nikhil Kaul The Insolvency and Bankruptcy Code, 2016 (code), notified by the government of India in May 2016, was in response...
labour laws

SC weighs in on interplay of labour laws and IBC

By Abhishek Dutta and Vineet Shrivastava, Aureus Law Partners
India as a welfare state has enacted various labour laws in order to ensure the protection and promotion of the social and economic status of workers and the elimination of their exploitation. Under the Indian...
Trade unions are operational creditors under insolvency code

Trade unions are operational creditors under insolvency code

The Supreme Court, in the recent case of JK Jute Mill Mazdoor Morcha v Juggilal Kamlapat Jute Mills Company Ltd through Its Director & Ors, held that a trade union can file as an operational...
Abhishek Dutta, Vineet Shrivastava and Manish Parmar, Aureus Law Partners

IBC: Law of guarantees and corporate insolvency process

By Abhishek Dutta, Vineet Shrivastava and Manish Parmar, Aureus Law Partners
The National Company Law Appellate Tribunal (NCLAT), in its recent ruling in the case of Vishnu Kumar Agarwal v Piramal Enterprises Ltd, while examining the validity of an application made under section 7 of...
Avinash-Kumar-Khard-HSA-Advocates - 副本

Rescue financing: Helping hand for entities in distress

By Avinash Kumar Khard, HSA Advocates
Super priority lending (also known as rescue financing) has been recognized in many jurisdictions. In India, it has now been expressly covered, to some extent, under the Insolvency and Bankruptcy Code, 2016 (IBC). It...
Karthik Somasundram and Shreya Gupta, Bharucha & Partners

Time-barred debts and the insolvency code

By Karthik Somasundram and Shreya Gupta, Bharucha & Partners
The Insolvency and Bankruptcy Code, 2016, has been construed as a complete code. Based on that construction and noting that the code contained no provision expressly making the Limitation Act applicable, and as the...
Abhishek-Dutta,-Vineet-V-Shrivastava-and-Manish-Parmar-Aureus-Law-Partners

Existence of dispute under insolvency code

By Abhishek Dutta, Vineet V Shrivastava and Manish Parmar, Aureus Law Partners
Under the Insolvency and Bankruptcy Code, 2016, the corporate insolvency resolution process (CIRP) can be initiated by an operational creditor if there is no dispute in relation to the default on the part of...
By-Aditya-Vikram-Dua-and-Aniket-Sawant-SNG-&-Partners - 副本

Revisiting loan documents in light of insolvency code

By Aditya Vikram Dua and Aniket Sawant, SNG & Partners
The interests of banks, financial institutions and other lenders and recovery of loans advanced by them is at the heart of the insolvency framework introduced by the Insolvency and Bankruptcy Code, 2016 (code). Although...

Cross-border insolvency report: A bird’s eye view

By Abhishek Dutta and Astha Srivastava, Aureus Law Partners
The Insolvency Law Committee issued a report on cross-border insolvency in October after considering public comments received on a draft framework issued by the Ministry of Corporate Affairs. The committee considered the UNCITRAL Model...

Managing and mitigating risks in distress transactions

By Dorothy Thomas and Teza Jose, Shardul Amarchand Mangaldas & Co
In the last two years, we have seen a significant rise in M&As, largely driven by big ticket consolidation across sectors as companies divested distressed assets in an effort to reduce debt. The Insolvency...

Unfair balance: Guarantees and the insolvency code

By Satish Anand Sharma and Devashree Limaye, SNG & Partners
The uncertainty on whether guarantees would attract moratorium under section 14 of the Insolvency and Bankruptcy Code, 2016 (code), has ended with the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (ordinance). This...
cross-border insolvency discussed by Abhishek Dutta

Cross-border insolvency requires a new framework

By Abhishek Dutta and the Knowledge Management Team, Aureus Law Partners
While a corporate entity may have creditors, debtors and assets in various countries, the Insolvency and Bankruptcy Code, 2016 (IBC), in its current avatar has no comprehensive legal framework on cross-border insolvency (CBI). The...
Insolvency

NCLAT clarifies ‘dispute’ under the insolvency code

The National Company Law Appellate Tribunal (NCLAT) recently held in an appeal against the Allahabad bench of the National Company Law Tribunal (NCLT) that any disputes within a corporate debtor company is not one...
Deepak-Sabharwal,-Deepak-Sabharwal-&-Associates

Changes aim to halt abuse of insolvency proceedings

By Deepak Sabharwal, Deepak Sabharwal & Associates
A rise in high-profile banking frauds led to the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018. The ordinance, effective from 6 June, presses for greater transparency in the corporate insolvency resolution process (CIRP), to...
Business Law Journal, letter to the editor

IBC’s position on supply of essential goods and services

Dear Editor, Section 14(2) of the Insolvency and Bankruptcy Code, 2016 (IBC), states that the “supply of essential goods or services to a corporate debtor shall not be suspended during the moratorium period”. The purpose...

Sound insolvency resolution key to infrastructure growth

By Divyanshu Pandey and Arpita Garg, J. Sagar Associates
Infrastructure developers in India have traditionally placed significant reliance on bank financing for infrastructure development. However, because of aggressive bidding, delayed payments causing strain on cash flows and lack of a secondary market for...

Jury is out on aspects of winding up and insolvency

By Varsha Banerjee, Dhir & Dhir Associates
Winding up proceedings were earlier initiated and conducted under the Companies Act, 1956. However, with the coming into force of the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016 (IBC), the process...

President promulgates amendment to insolvency and bankruptcy law

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017, dated 23 November 2017, was promulgated by President RN Kovind to amend the provisions relating to the insolvency resolution process contained in the Insolvency and Bankruptcy...

Demand notice filing procedure clarified for lawyers

The Supreme Court had the opportunity to settle the law on important questions arising under the Insolvency and Bankruptcy Code, 2016 (IBC), which have impaired operational creditors from enforcing their rights under the IBC. In...

Insolvency ordinance: A boon or a bane?

By Amit Ronald Charan and Satish Anand Sharma, SNG & Partners
The Insolvency and Bankruptcy Code (Amendment) Act, 2017, is based on an ordinance promulgated by the president on 23 November. It is intended to improve the credibility of the corporate insolvency resolution process (CIRP)...

Rule change urged to allow insolvency proceedings halt

By Deepak Biswas and Sneha Jaisingh, Bharucha & Partners
The Insolvency and Bankruptcy Code, 2016, primarily aims to achieve reorganization and insolvency resolution in a time-bound manner for maximizing the value of assets of insolvents. The National Company Law Tribunal (NCLT), the adjudicating...

Circular on anomaly shows goals of code take priority

By Sachin Gupta, Dhir & Dhir Associates
The Insolvency and Bankruptcy Code, 2016 (IBC), implements a “creditor-in-possession” regime that vests decision making powers of the insolvent company with a “committee of creditors” (CoC), astutely recognizing that financial creditors will be better...

Information utility: A vital cog in the code

By Rahul Sud and Satish Anand Sharma, SNG & Partners
The four pillars envisaged under the Insolvency and Bankruptcy Code, 2016, are now in place: A regulator, the Insolvency and Bankruptcy Board of India (IBBI); Adjudicating authorities (AA), the National Company Law Tribunal (NCLT) and debt...

Business in India and insolvency laws

By Manoj Kumar and Shweta Bharti, Hammurabi & Solomon
The Insolvency and Bankruptcy Code, 2016 (IBC), has come into effect in India at a time when overseas companies are seeing increased India business as well as an increasing number of Indian businesses going...
Insolvency and Bankruptcy Code: Two sides of the coin. Column by Alok Dhir, Dhir & Dhir Associates

Insolvency and Bankruptcy Code: Two sides of the coin

By Alok Dhir, Dhir & Dhir Associates
The Insolvency and Bankruptcy Code, 2016 (IBC), is a watershed in the history of India’s banking credit culture. Replacing a plethora of legislation it provides for a single-window, time-bound process designed to revive a...

Real estate test for the new insolvency code

By Rahul Sud and Satish Anand Sharma, SNG & Partners
The recently introduced Insolvency and Bankruptcy Code, 2016 (IBC), has been put to a real test with the admission of corporate insolvency resolution proceedings (CIRP) against Jaypee Infratech for defaulting on a loan from...
Vivek Vashi and Ttkarsh Srivastava, Bharucha Partners

‘Dispute’ meaning settled for corporate insolvency cases

By Vivek Vashi and Utkarsh Srivastava, Bharucha & Partners
The National Company Law Appellate Tribunal (NCLAT), in Kirusa Software Pvt Ltd v Mobilox Innovations Pvt Ltd, has finally decided the scope of the term “dispute” under section 9 of the Insolvency and Bankruptcy...
Sawant Singh and Aditya Bhargava at Mumbai office of Phoenix Legal

Is the budget a bellwether or a Cassandra for reforms?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
With the last throes of the demonetization saga closely nipping at the government’s heels, much theatre and fanfare accompanied the introduction of its 2017-18 budget. Tension was heightened as the union budget was merged...
Amit Aggarwal and Rahul Sud Dishonour of post-dated cheques taken as security

India’s Bankruptcy Code: Lessons from Singapore

By Amit Aggarwal and Rahul Sud, SNG & Partners
The personal and corporate insolvency regimes under India’s Insolvency and Bankruptcy Code, 2015, are largely underpinned by UK statutes and common law. Singapore also follows the UK position and thus it may be useful...
Bankruptcy Code decoded

Bankruptcy code decoded

The rewriting of India’s bankruptcy laws has prompted the publication of at least two books. The first is a section-by-section commentary on the Insolvency and Bankrupty Code, 2016, by Pranav Khatavkar, an independent lawyer...
provisions-notified-under-bankruptcy-code

Provisions notified under Bankruptcy Code

On 24 August, the government notified certain provisions of the Insolvency and Bankruptcy Code, 2016. These provisions came into effect on 19 August. The notified provisions relate to the following: Definition of “Insolvency and...
siddharth-srivastava-and-kanika-kadam-link-legal-india-law-services

Bankruptcy Code’s impact on ease of doing business

By Siddharth Srivastava and Kanika Kadam, Link Legal India Law Services
The World Bank’s Doing Business Report, 2016, ranks India 130 among 189 economies on “ease of doing business”. One of the sub-indexes on which the ranking depends is resolving insolvency. It is interesting to...

Parliament passes insolvency and bankruptcy code

The Insolvency and Bankruptcy Code, 2015, provides a consolidated statutory framework for the resolution of bankruptcy and insolvency proceedings. This framework is a far cry from the multiple legislative and judicial forums that creditors...
By Sawant Singh and Aditya Bhargava, Phoenix Legal

Budget 2016: Good times ahead for bond markets?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
While the Indian corporate bond market has become more active in the private placement segment in the past few years, the market’s overall development has been ad hoc. This situation seems set for a...
Debanshu Mukherjee

Decoding the bankruptcy code

Proposed changes to the insolvency regime will boost credit markets and entrepreneurship, argues Debanshu Mukherjee  The Insolvency and Bankruptcy Code, 2015, which was introduced in parliament in December 2015, proposes large-scale reforms to India’s corporate insolvency...
By Babu Sivaprakasam, Deep Roy and Megha Agarwal, Economic Laws Practice - 副本

Conflict between company law and the SARFAESI Act

By Babu Sivaprakasam, Deep Roy and Megha Agarwal, Economic Laws Practice
The Indian legal framework for recovery of debt and for dealing with companies in distress is spread across various statutes. Creditors can seek recourse under the provisions of statutes such as the Companies Act,...
Corporate and commercial e-interests yield to consumers, Manoj Kumar, Hammurabi & Solomon Partners

New law on pre-pack resolution plans under IBC

By Manoj Kumar, Hammurabi & Solomon Partners
The Insolvency and Bankruptcy Code (Amendment) Bill, 2021, which provides for pre-packaged insolvency resolution processes (PPIRP), has received assent and replaces the Insolvency and Bankruptcy (Amendment) Ordinance, 2021. The bill inserts a new chapter, III-A,...
Certificate of recovery constitutes fresh cause of action

Certificate of recovery constitutes fresh cause of action

The Supreme Court, in its judgment dated 4 August in the matter of Dena Bank (now Bank of Baroda) v C Shivkumar Reddy and Anr, has held that a certificate of recovery, if not...
Deep mining yields rewards from IBC resolutions, Charanya Lakshmikumaran and Ishita Mathur, Lakshmikumaran & Sridharan 

Deep mining yields rewards from IBC resolutions

By Charanya Lakshmikumaran and Ishita Mathur, Lakshmikumaran & Sridharan 
India is mineral rich, with the mining sector a powerhouse contributing INR913 billion (USD12.3 billion) to GDP. However, this sector, which is integral to government plans to revive the economy, has profitability problems. Falls...
Ascertaining impact of IBC’s section 32A on criminal proceedings, Sonam Gupta and Anurag Tandon, Bharucha & Partners

Ascertaining impact of IBC’s section 32A on criminal proceedings

By Sonam Gupta and Anurag Tandon, Bharucha & Partners
The Insolvency Law Committee (committee), in its third report, recommended that section 32A be inserted into the Insolvency and Bankruptcy Code, 2016 (code). This granted immunity to the corporate debtor and its property from...
Secured creditors not always financial creditors, Karthik Somasundram and Sneha Jaisingh, Bharucha & Partners

Secured creditors not always financial creditors

By Karthik Somasundram, Sneha Jaisingh and Alabh Lal, Bharucha & Partners
In Phoenix Arc Pvt Ltd v Ketulbhai Ramubhai Patel, the issue before the Supreme Court was whether a person holding a security interest over the assets of a corporate debtor in respect of the...
Troubled MSMEs thrown a lifeline with pre-pack resolutions, Satish Anand Sharma and Anshita Gupta, SNG & Partners 

Troubled MSMEs thrown a lifeline with pre-pack resolutions

By Satish Anand Sharma and Anshita Gupta, SNG & Partners 
The long-awaited Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, (ordinance) has amended the Insolvency and Bankruptcy Code, 2016 (code), with the aim of reviving micro, small and medium enterprises (MSME). The ordinance has inserted...
Second proviso to IBC not needed

Second proviso to IBC not needed

Recently in Manish Kumar v Union of India, the Supreme Court upheld the constitutional validity of all the provisos added to section 7(1) of the Insolvency and Bankruptcy Code, 2016(IBC), via the Insolvency and...
Guarantees will now better ensure payment of debts, Aditya Vikram Dua and Aniket Sawant, SNG & Partners

Guarantees will ensure better payment of debts for now

By Aditya Vikram Dua and Aniket Sawant, SNG & Partners
It is a common practice for lenders to obtain guarantees for securing financial assistance granted to a borrower entity. The guarantor’s liability crystallises as soon as the borrower defaults on the debt. However, the...
Related party exclusion cannot be avoided through divestment 

Related party exclusion cannot be avoided through divestment 

Financial creditors that cease to be related parties in order to circumvent the exclusion under the Insolvency and Bankruptcy Code, 2016, should also be considered as being covered by the exclusion, according to a...
The conundrum of third-party security holders, Satish Anand Sharma and Abhimanyu Chandan Rajguru, SNG & Partners

The conundrum of third-party security holders

By Satish Anand Sharma and Abhimanyu Chandan Rajguru, SNG & Partners
Much has been said about the obligation of a third-party security provider when a borrower enters the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). Under a financing transaction,...
Pledging shares does not create a financial creditor, Shweta Bharti and Nitesh Sachdeva, Hammurabi & Solomon_

Pledging shares does not create a financial creditor

By Shweta Bharti and Nitesh Sachdeva, Hammurabi & Solomon
In Phoenix Arc Pvt Ltd v Ketulbhai Ramubhai Patel, the Supreme Court held that a creditor cannot be a financial creditor on the basis of a pledge agreement unless that agreement contains an undertaking...
India law firms- deals of the year 2020

Deals of the Year

India Business Law Journal reveals the most significant deals and disputes of 2020 and the law firms that worked tirelessly in bringing them to fruition. By Rebecca Abraham The year gone by has been unlike...
Force Majeure

Invocation of force majeure in insolvencies

The doctrine of frustration envisaged in section 56 of the Indian Contract Act, 1872, was recently applied by the National Company Law Tribunal (NCLT) in the case of Suraksha Asset Reconstruction Ltd & Ors...
law firms crisi point

Crisis point

Enduring one of the most challenging periods in their lives, lawyers tell India Business Law Journal how their firms have been managing and how the violent disruption of the pandemic is forcing change. Gautam...
Anush Raajan and Swastika Chakravarti, Lakshmikumaran & Sridharan, Decree holders

Decree holders not financial creditors under IBC

By Anush Raajan and Swastika Chakravarti, Lakshmikumaran & Sridharan
The Insolvency and Bankruptcy Code, 2016 (IBC) was conceived as a solution to the growing problem of non-performing assets. Together with the Reserve Bank of India’s framework for the resolution of stressed assets, the...
Aatma Nirbhar Bharat Abhiyaan, Disinvestment

Destination disinvestment?

Selling off public sector enterprises could be the key to strengthening a sluggish economy, writes Subir Bikas Mitra. Will a new privatization drive succeed where earlier attempts have failed? Aatma Nirbhar Bharat Abhiyaan (ANBA), which...
Amit Ronald Charan, Anshita Kaur,HSA Advocates

Impact of covid-19 on project finance, banking transactions

By Amit Ronald Charan and Anshita Kaur, HSA Advocates
Industry has been struggling to cope with the ongoing economic slowdown despite fiscal, monetary and other support from the government. Reduced availability of capital has impacted several industry sectors, one of which is infrastructure....
IBC Ordinance Rishabh Mishra,National University for Study and Research in Law,Ranchi,Insolvency and Bankruptcy Code

IBC ordinance imposes rigid timelines

On 9 July 2020, the Chennai bench of the National Company Law Tribunal (NCLT), in the matter of M/S Siemens Gemesa Renewable Power Pvt Ltd v Ramesh Kymal, held that the Insolvency and Bankruptcy...
Anush Raajan Swastika Chakravarti Lakshmikumaran & Sridharan Insolvency and Bankruptcy code india

Disputed claims are not defaults under IBC

By Anush Raajan and Swastika Chakravarti, Lakshmikumaran & Sridharan
Under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), the National Company Law Tribunal (NCLT) in admitting a petition by a financial creditor is concerned only with the existence of a default...
creditorsvideo

Left without remedy

Creditors are in need of a credible mechanism for the resolution of covid-19-related distress until the suspension of the corporate insolvency resolution process is in place, writes Shardul Shroff Effective from 5 June 2020, section...
regulatory

Awkward regulatory tango over COVID-19 relief

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The COVID-19 pandemic and its dampening effects on economies has compelled governments and regulators to introduce innovative measures, in particular to restore stakeholder confidence in financial markets. Among Indian regulators, the Reserve Bank of...
financial

A tool for financial trouble

Now is a perfect time to introduce a composite code for the resolution of financial service providers, following a series of high-profile incidents in this area, writes Mohit Shukla Editor’s note: Large banking and financial...

Analysing financing models for infrastructure projects

By Sharmil Bhushan and Jyoti Punjabi, HSA Advocates
The infrastructure sector is critical to India’s development. Financing in infrastructure is expected to grow exponentially over the next few years, particularly as India needs to spend about US$1.4 trillion on infrastructure if it...
Brookfield real estate

COVID-19: Relief for forgotten homebuyers

Homebuyers were included as financial creditors under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) vide an amendment in the code in 2018. Pursuant to their inclusion, homebuyers could either individually or...
relief

Slowing the free fall

Taking stock of the relief measures deployed by regulators to soften the impact of the lockdown. Gautam Kagalwala reports With the COVID-19 outbreak, the government has been fighting on two fronts. It has introduced a...
corporate debtors

Net tightens for promoters of corporate debtors

By Manoj Kumar and Shweta Bharti, Hammurabi & Solomon
2020 has witnessed two legal developments that will impact the recovery strategies of operational creditors in India. The first development is the insertion of section 32A into the Insolvency and Bankruptcy Code, 2016 (code),...
M&A

What’s in store for M&As in a post COVID-19 economy

By Raghubir Menon and Aditya Parolia, Shardul Amarchand Mangaldas & Co
The economy has come to a halt in the current unprecedented situation. Apart from medical and essential service providers, labour and capital have been idle during the coronavirus-induced lockdown, and the world economy seems...

Avoiding preferential transfers by debtors

By Charanya Lakshmikumaran and Gopal Machiraju, Lakshmikumaran & Sridharan
Creditors are often faced with circumstances in which debtors have transferred their assets, thus reducing the assets available for distribution in cases of insolvency or liquidation. Section 53 of the Transfer of Property Act,...
energy sector

COVID-19 may power down the energy sector

By Abhishek Tripathi and Mani Gupta, Sarthak Advocates & Solicitors
The power sector is not excepted from the impact of COVID-19. While power remains an essential supply, lockdowns mean shrinking demand. This will affect every link of the supply chain. Power generation companies may...
competition law

2019 was a significant year in competition law

By Vaibhav Choukse and Nripi Jolly, J. Sagar Associates
2019 marks a decade of enforcement by the Competition Commission of India (CCI), following the notification in 2009 of the antitrust provisions of the Competition Act, 2002 (act). Despite challenges to its jurisdiction and...
RERA

At a crossroads

Recognizing homebuyers as financial creditors in the event of insolvencies is a welcome move, but the RERA remains the preferred route for recovering funds, writes Vineeta Bansal Homebuyers have been given equal rights as financial...
insolvency

IBC: Intent continues to prevail over form

By Charanya Lakshmikumaran and Puneeth Ganapathy, Lakshmikumaran & Sridharan
The Insolvency and Bankruptcy Code, 2016 (code) whose objectives and implementation constantly appear to be in opposition, continues to provide material for purposive interpretation by the Supreme Court. The recent decision of Anuj Jain...
lenders

Jaypee judgment creates a conundrum for lenders

By Soumyajit Mitra and Mohit Yadav, SNG & Partners
The Supreme Court (SC) in deciding several issues in litigation calling into question the meaning and scope of preferential transactions in corporate insolvency and the nature of financial debt particularly in relation to third-party...
insolvency

IBC cannot be used as a threat

In a recent judgment, the Calcutta High Court dealt with the question of whether an application under section 34 of the Arbitration & Conciliation Act, 1996, can be kept in abeyance owing to the...
policy

Interplay of polity, policy on infrastructure development

By Shreshth Sharma and Molshree Bhatnagar, HSA Advocates
Governed by its constitution and derivative laws, a country speaks through its policies. Sound economic and regulatory policy creation coupled with effective implementation encourages investor confidence and forms the fundamental basis of attracting large...
Dhaval

New rainmakers at Dhaval Vussonji

Dhaval Vussonji & Associates has promoted two associate partners to the partnership, and four senior associates to principal associates. Manisha Paranjape and Sonam Mhatre, both also qualified solicitors, are the firm’s newest partners. Commenting on...

Lenders assign GSML debt to ARC

Argus Partners advised a Garden Silk Mills (GSML) consortium of lenders, led by Bank of Baroda, on the resolution of its stressed assets and account under the Reserve Bank of India’s (RBI) circular dated...
deals

Deals of the Year 2019

India Business Law Journal reveals the most significant deals and disputes of 2019 and the law firms that worked tirelessly to bring them to fruition The best transactions for the past year in India came...
creditors

Court rules committee of creditors is supreme

By Karthik Somasundram and Shreya Gupta, Bharucha & Partners
Essar Steel India defaulted on repayment obligations to its creditors and in 2017 Standard Chartered Bank (SCB) and State Bank of India filed petitions for financial debt under the Insolvency and Bankruptcy Code, 2016....
受压资

The evolving resolution of stressed assets

By Ramya Hariharan and Dipti Srivastava, HSA Advocates
The banking sector has been under tremendous stress in the past few years due to the increasing number of non-performing assets (NPA) caused among other things by the absence of a comprehensive bankruptcy regime....
creditor

Creditors’ wisdom should be heeded

The verdict of the Supreme Court on 15 November 2019, in the case of Committee of Creditors of Essar Steel India Limited through Authorised Signatory v Satish Kumar Gupta & Ors, has brought clarity...
Essar

Something for everyone in the Essar judgment

By Aniket Sawant and Arvind Nagaraj, SNG & Partners
The long-awaited decision of the Supreme Court in Committee of Creditors of Essar Steel India Limited v Satish Kumar Gupta & Ors case comes as a relief for financial creditors, especially those holding security,...
committee

Evolution of the committee of creditors’ authority

By Charanya Lakshmikumaran and Gopal Machiraju, Lakshmikumaran & Sridharan
The role of the committee of creditors (CoC) in a corporate insolvency resolution process (CIRP) has increasingly been scrutinized and clarified by various courts and tribunals, including the Supreme Court. There have also been...
ECB

IBC to lure foreign funds following ECB reforms

By Sameen Vyas and Vishrut Kansal, L&L Partners
Consistent with the views of the government, the Reserve Bank of India (RBI) regards the Insolvency and Bankruptcy Code, 2016 (IBC), as a credible way of removing obstructions to economic progress represented by non-performing...
law firms

State of play

Indian law firms face a daunting pace attack from big accountancy firms amid a slow-wicket economy. On top of this, in-house counsel are facing up to more work internally, leaving less for law firms....
subsidiary

Retaining the independence of a subsidiary

Dear Editor, An insolvency resolution professional (IRP) can stop a holding company from moving assets of a subsidiary that is going through a corporate insolvency resolution process because both the companies are separate legal entities....
India Business Law Journal

Mixed fortunes

Differing real estate trends emblematic of India? A recent bidding war for an office building in the heart of Mumbai’s business district, the Bandra Kurla Complex, that had earlier drawn lukewarm interest, points to the...
Private equity

Watch your step

Steering clear of conflicts of interest can be the difference between life and death for private equity investments, writes PM Devaiah It may be trite to say that trust is the force that drives the...
SEBI

SEBI limits exemption from open offer on debt conversion

By Ambarish and Mihir Roy, Shardul Amarchand Mangaldas & Co
The Securities and Exchange Board of India (SEBI) no longer considers entities that are not scheduled commercial banks (SCBs) or all India financial institutions (AIFIs) as “lenders” for exemption from a mandatory open offer...
SEBI

SEBI raises questions on IBC’s overriding provisions

By Abhishek Dutta, Manish Parmar and Sayli Petiwale, Aureus Law Partners
A recent challenge by the Securities and Exchange Board of India (SEBI) before the Supreme Court exemplifies how the Insolvency and Bankruptcy Code, 2016 (IBC), remains a heavily contested field. The Supreme Court is...
waterfall mechanism

Ensuring fair distribution under waterfall mechanism

By Aditya Vikram Dua and Satish Anand Sharma, SNG & Partners
The Insolvency and Bankruptcy Code, 2016 (IBC), has been severely tested on many fronts since its enactment. One concept that remains to be tested is the waterfall mechanism, or priority of payments, in the...
Home finance

Home finance lenders are not financial creditors to developers

In a recent judgment in Indiabulls Housing Finance Ltd v Rudra Buildwell Projects (P) Ltd, the National Company Law Appellate Tribunal (NCLAT) dismissed the appeal of Indiabulls claiming to be a financial creditor of...
resolution

Views on RBI’s new stressed asset resolution framework

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The Supreme Court, in Dharani Sugars and Chemicals Ltd v Union of India, quashed the Reserve Bank of India’s (RBI) directions of 12 February 2018 on resolution of stressed assets on certain grounds such...
Liquidation

Liquidation under IBC

Dear Editor, In the matter of SC Sekaran vs Amit Gupta & Ors, relying on the decisions of the Supreme Court in Swiss Ribbons Pvt Ltd & Anr v Union of India & Ors and...