On 07 November 2017, the Insolvency and Bankruptcy Board of India (IBBI) amended: (A) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) and (B) The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 (Fast Track CIRP Regulations), issued under the Insolvency and Bankruptcy Code, 2016 (Code). The stated objective of the amendments is to ensure that the corporate insolvency resolution process of the debtor company (CIRP) leads to a “credible resolution plan that maximizes the value of assets of the corporate debtor”. BackgroundIn the CIRP of a corporate debtor, any person can submit a resolution plan (for resolution of insolvency of the debtor) to the Resolution Professional (RP). The RP is statutorily mandated to examine the plans for compliance with minimum criteria and thereafter, submit all complying plans to the … [Read more...] about IBBI Amends Regulations Governing Corporate Insolvency Resolution Process
Corporate insolvency resolution process
India is on the cusp of a major shift in its recovery, insolvency, and bankruptcy jurisprudence post introduction of Insolvency and Bankruptcy Code 2016 (hereafter, the “Code”). Several well established concepts are being challenged and at the same time, new concepts are being evolved. For instance, it is a well-known principle of law that every dispute should be contested within the limitation period prescribed under the Limitation Act 1963. However, in Neelkanth Township and Construction Pvt. Limited v. Urban Infrastructure Trustees Limited the Hon’ble National Company Law Appellate Tribunal (hereafter, the “NCLAT”) upheld that the Limitation Act 1963 is not applicable to the Code. While there are several such instances like the one mentioned above, the applicability of other laws and legal concepts to the insolvency proceedings is a very delicate subject which has been mentioned in the “Legislative Guide on Insolvency Law of the United … [Read more...] about Corporate Insolvency Resolution Process Under Insolvency And Bankruptcy Code And The Dilemma Surrounding Guarantee
The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017.The Ministry of Corporate Affairs has notified the relevant sections 55 to 58 of the Insolvency and Bankruptcy code,2016 pertaining to the Fast Track Process and also notified that fast track process shall apply to the following categories of corporate debtors: a small company, as defined under clause (85) of section 2 of the Companies Act, 2013; or a Startup (other than the partnership firm), as defined in the notification dated 23rdMay, 2017 of the Ministry of Commerce and Industry; or an unlisted company with total assets, as reported in the financial statement of the immediately preceding financial year, not exceeding Rs.1 crore.The new regulations provide the process from initiation of insolvency resolution of eligible corporate debtors till its conclusion with approval of the … [Read more...] about Insolvency And Bankruptcy Board Notifies Fast Track Insolvency Resolution Process [Read Notification]
Share Tweet Plus One Pin It Email Print By: P.V Dinesh December 19, 2018 3:24 pm Change Font Size Recently, on 26th November 2018, the Corporate Affairs Secretary Mr.Injeti Srinivas informed the country that out of the 9,000 cases filed before the National Company Law Tribunal (NCLT), 4,400 cases have been disposed of, leading to a recovery of approximately Rs.71,000 crores. The total bad debts assessed so far that is owed to the public sector banks in India amounts to Ten Lakh Crores of Rupees. As per the report published by the Insolvency and Bankruptcy Board of India(“IBBI”),in respect of the 32 companies which are stated to have been resolved in insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (“IBC”), there is a recovery of Rs.49,783 crores which amounts to 56 % recovery. The balance, i.e., Rs.39,619 crores is written off, which would otherwise have been payable by these 32 companies. In the case of the 136 … [Read more...] about Insolvency Proceedings – Safe Passage for Defaulters?
Share Tweet Plus One Pin It Email Print By: Aasavri Rai July 5, 2018 12:15 pm Change Font Size The Insolvency and Bankruptcy Board of India has notified the revised norms for the resolution of insolvency process and has paved way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by resolution professionals and permitting withdrawal of insolvency applications subject to certain conditions. The board has mandated that a resolution professional needs to determine whether a corporate debtor had indulged in fraudulent transactions within a specified time period during the resolution process. The IBBI (Insolvency Resolution Process for Corporate Persons) Regulations were amended, pursuant to an ordinance amending the Insolvency and Bankruptcy Code (IBC). In cases where there is no agreed-upon interest rate between the parties, the voting share of such a creditor would be in proportion to the financial debt, including an … [Read more...] about Revised Norms for Home Buyers Under Insolvency Proceedings Notified [Read Notification]