A key element that differentiates the IBC from previous legislation governing corporate insolvency is the distribution waterfall in the event of liquidation.
Tag: liquidation of the Corporate Debtor
NIL payment to OC’s if Liquidation Value is NIL, doesn’t contravene the provisions of S. 30(2)(b) of IBC, 2016: NCLAT, New Delhi
the Operational Creditors are only entitled for minimum of the Liquidation Value and NIL payment to Operational Creditors in case the Liquidation Value is NIL, does not contravene the provisions of Section 30(2)(b) of Insolvency & Bankruptcy Code, 2016.
NCLAT Chennai condones a delay of 147 days in filing of Appeal before the Appellate Tribunal
The National Company Law Appellate Tribunal in the matter of M. K. Resely & Ors. Vs Union Bank of India has condoned a delay of 147 days in filing of appeal before NCLAT upon equity.
Change in the Constitution of CoC will not affect its prior decision
A change in the composition of the Committee of Creditors (CoC) of the Corporate Debtor will affect its previous decision and the same will be binding on the newly included members of CoC.
Whether the Wages/Salaries during the CIRP Period are to be qualified as CIRP Costs or not
Wages and salaries are considered and included in CIRP costs as per under Section 53(1)(a) of the IB Code.
The Insolvency and Bankruptcy Code, 2016 is not Interest Recovery Code
NCLT held that the “interest” component alone cannot be claimed or pursued, in absence of the debt, to trigger a CIRP against the corporate Debtor. Further, the application pursued realization of the interest amount alone is against the intent of the IBC, 2016.
AA has limited power of judicial review if resolution plan is approved by CoC: SC
Supreme Court’s decision in Maharashtra Seamless Limited shows that the commercial wisdom of the CoC will be given top priority when deciding on the feasibility and viability of the resolution plan.
Liquidation under Insolvency and Bankruptcy Code
Earlier the winding up of the company was initiated and conducted under the Companies Act, 1956 while the same has got annulled after the advent of Insolvency and Bankruptcy Code.