Search Results for: Insolvency and Bankruptcy Code

Lanco lenders to searching for time extension to complete insolvency process

The committee of lenders (COC) of LancoInfratech (LIPL) determined to are searching for an extension of time from National Company Law Tribunal (NCLT) to complete the continuing insolvency decision process as the lenders need to have a full clarity on feasible situations of decision. “The COC had held a meeting on Monday and determined to … Continue reading “Lanco lenders to searching for time extension to complete insolvency process”

Norms for insolvency resolution professionals code by SEBI

Securities and Exchange Board of India (SEBI) is working on the guidelines for insolvency resolution professionals under the capital market norms so the recently introduced Bankruptcy & Insolvency Code is implemented better. The new guidelines will be issued this year. Source: Times of India

Recommendations for Insolvency, Insolvency professionals and Insolvency professional agencies

The Ministry of Corporate Affairs had set-up a working group consisting of practitioners and experts for making recommendation for drafting regulations in respect of registration and regulations of Insolvency and Insolvency professionals and Insolvency professional agencies envisaged under the code. The following regulations have been drafted and made available on the Ministry’s website: (1) Insolvency … Continue reading “Recommendations for Insolvency, Insolvency professionals and Insolvency professional agencies”

Differential Treatment of Operation Creditors

Operational creditors under Insolvency and Bankruptcy Code, 2016 (IBC) are the ones who supply goods or services to the corporate debtor in exchange for operational debt. As per Section 5(20) of IBC, an “operational creditor” means a person to whom an operational debt is owed. Section 5(21) of IBC defines “operational debt” as

“a claim for the provision of goods or services, including employment, or a debt for the repayment of dues arising under any law for the time being in force and payable to the Central Government, any State Government, or a local authority.”

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.

Lease Premium & Lease Rent not included in Explanation to Section 14(1)(D) of the IBC, 2016

The lease premium and rent given to the Corporate Debtor are not included in Section 14(1)(D) of the Insolvency and Bankruptcy Code, 2016.

Personal Guarantor under section 95 is exempted from section 10A of IBC, 2016

Section 10A proceedings are not applicable against the Personal Guarantor under section 95 of the Insolvency and Bankruptcy Code, 2016.

The Corporate Guarantor can initiate CIRP against the Corporate Debtor under “Right to subvention”

Proceeding against the Corporate Debtor for the recovery of the dues and hence can file a petition against the Corporate Debtor under Section 7 of the Insolvency and Bankruptcy Code, 2016 before the Adjudicating Authority.

Article 1 of the Limitation Act, is not applicable to proceedings under the IBC Laws

Article 137 is having a wider scope than Article 1 of the Limitation Act and is not applicable to the proceedings under the Insolvency and Bankruptcy Code. Article 1 is also not applicable to the petition filed by the Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code.

If default has occurred, petition must be admitted: Supreme Court

The Supreme Court of India issued its first comprehensive ruling on the operation and functioning of the Insolvency and Bankruptcy Code, 2016 in the case of Innoventive Industries Limited vs ICICI Bank Limited.

Conundrum on concept of subordinate charge in CIRP under IBC

Introduction of Insolvency and Bankruptcy Code, 2016 has decreased the idea of Subordinate Charge as Form H and Section 53 of Insolvency and Bankruptcy Code (“IBC”) recognizes only secured creditors.