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 to learn from the Singapore experience and compare positions between India and Singapore.
Making an application: India’s code permits any financial or operational creditor to make an application for insolvency on default of debt or interest payment. If the application is accepted, the adjudicating authority appoints an insolvency professional (IP) which has to be approved by the lenders. The IP’s mandate is to run the company as a going concern for the moratorium period of 180 days.
Singapore’s insolvency process has three options: (i) scheme of arrangement; (ii) appointment of judicial manager; and (iii) winding up of the company. A secured creditor has an option of appointing a receiver and manager for the secured property.
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SNG & Partners has offices in Delhi, Mumbai, Singapore and Doha. Amit Aggarwal is a partner and Rahul Sud is an associate partner.
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