Search Results for: financial creditor

NCLT Kolkata Allows CIRP Proceedings Despite PMLA Provisional Attachment Order

In a significant ruling, the National Company Law Tribunal (NCLT) Kolkata, comprising Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member), has upheld the admission of Corporate Insolvency Resolution Process (CIRP) proceedings against Shree Mahalaxmi Corporation Pvt. Ltd. (the Corporate Debtor) under the Insolvency and Bankruptcy Code, 2016 (IBC), despite a Provisional Attachment … Continue reading “NCLT Kolkata Allows CIRP Proceedings Despite PMLA Provisional Attachment Order”

Regulation and Restriction on Loan and Investment by Company under Section 186 of Companies Act 2013

Section 186 of Companies Act 2013 imposes restrictions on loans and investments that can by made by a company. The main aim of the provision is to ensure responsible financial management, prevent misuse of funds, and protect the interests of shareholders and creditors of the company. Section 186(1) states that a company can make investments … Continue reading “Regulation and Restriction on Loan and Investment by Company under Section 186 of Companies Act 2013”

Treatment and Priority of EPFO dues under Insolvency and Bankruptcy Code, 2016 (“IBC”)

The provisions Insolvency and Bankruptcy Code, 2016 specifically provides for treatment for all sums due to any workman or employee from the provident fund, the pension fund and the gratuity fund. Further, in the present scenario there is much debate on the admissibility of the claim of EPFO under Sections 7Q and 14B for which … Continue reading “Treatment and Priority of EPFO dues under Insolvency and Bankruptcy Code, 2016 (“IBC”)”

Succinct Summary of The Fast Track CIRP under IBC, 2016

The fast-track CIRP is designed to expedite the insolvency process for smaller companies and enable their efficient restructuring or liquidation.

Deciphering the Enigma of Interim Moratorium under IBC

Insolvency and Bankruptcy Code, 2016 brings in the concept of Interim Moratorium, which offers protection to individuals during the insolvency process.

Proposed Amendments in the Insolvency and Bankruptcy Code, 2016

The issues that are adversely affecting the efficiency and effectiveness of the resolution process and for increasing the possibility of resolution, value of resolution plan, and ending timely resolution.

Corporate Social Responsibility and its Insolvency

In the past few decades, business leaders as well as philosophers came up with a new phenomenon which is Corporate Social Responsibility (CSR). Under CSR Businesses are responsible to the society that exists around them. And under CSR only it becomes their moral duty to safeguard that society and help that society to grow.

The attachment of assets by the ED under the PMLA Act is not permissible once a company has entered insolvency

Asset attachment by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) is critical in combating money laundering and criminal activities.

Important compliances for private limited company

It is often said that one major disadvantage of a company structure is that there are more compliances. The cost of non-compliance is always more than the cost of compliance.

How IBC can be helpful to Start-Up?

The fast track process which can be initiated by a creditor or the corporate debtor itself cuts down the time taken to complete an insolvency resolution to almost half as compared to the regular process under the IBC.

Virtual Currencies Platform undergoing Insolvency in the Indian Scenario

The primary challenge to VC regulation is the uncertainty regarding their very nature– whether they can be considered goods, commodities, currencies, or property.

Insolvency Resolutions:  A special case for MSMEs

The government has introduced the pre-packaged insolvency resolution process (PPIRP) for MSMEs, which allows them to initiate an insolvency process with the approval of two-thirds of their creditors.

Crypto Assets and Insolvency

the legal status of cryptocurrencies in India is still unclear, and the lack of clear regulation creates uncertainty for investors and businesses operating in the industry.

NEW CHALLENGES IN THE IBC WATERFALL MECHANISM

A key element that differentiates the IBC from previous legislation governing corporate insolvency is the distribution waterfall in the event of liquidation.