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]
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By: Manu Sebastian 2019-01-29T22:00:57+05:30 Regulation 30A has to be read subjection to Section 12A IBC, held the Court. In a notable order passed recently, the Supreme Court permitted the withdrawal of Corporate Insolvency Resolution Process(CIRP) even after the Resolution Professional issued invitation for expression of interest from resolution applicants to submit resolution plans under Regulation 36A of CIRP Regulations 2016. As per Regulation 30A, withdrawal of insolvency application has to be sought before the issue of invitation for expression of interest under Regulation 36A. This case Brilliant Alloys Pvt Ltd v S Rajagopal, arose out of proceedings in NCLT Chennai bench. In the CIRP before Chennai bench, the corporate debtor, financial creditor and the operational creditor entered into a settlement. Based on the settlement, the corporate debtor submitted application for withdrawal. Relying on Regulation 30A, the bench refused to permit withdrawal of application on the … [Read more...] about Insolvency Proceedings Can Be Withdrawn Even After Invitation Of Resolution Plans Under Regulation 36A : SC [Read Order]
A day after the Apex Court stayed the insolvency proceeding against Jaypee Infratech before NCLT, the IDBI bank today moved the top court saying the stay order will benefit the builder rather than the home buyers. Mentioning urgently before the Bench headed by Chief Justice of India J Dipak Misra, Senior Advocate A M Singhvi sought the bench to vacate the stay order.“The stay order on National Company Law Tribunal (NCLT ) of August 9 order will unintentionally benefit only Jaypee which will have a sound sleep and Consumers are not left without remedy”, Singhvi Argued.According to IDBI, one of the banks gave loans to home buyers, the Insolvency Resolution Proceeding will take care of consumers.Some home buyers who came to SC against insolvency proceedings were hand in glove with Jaypee Infratech, the counsel submitted.However, appearing for one of the home buyers, Senior Advocate K V Vishwanathan said the home buyers slept peacefully after the Top Court … [Read more...] about IDBI Moves SC To Vacate The Stay Of Insolvency Proceeding Against Jaypee
The Gujarat High Court on Monday dismissed Essar Steel’s Petition against the Reserve Bank of India’s directive to Banks for initiating insolvency proceedings against the Company. An oral order was passed by Justice S.G. Shah, with a detailed order expected later today.Essar Steel had approached the High Court challenging a circular issued by the RBI on 13 June, directing banks to initiate insolvency proceedings against 12 major NPAs. Each of these 12 accounts had an outstanding debt of Rs. 5,000 crore.Following the RBI direction, a joint lenders’ forum led by State Bank of India (SBI) had initiated proceedings in the National Company Law Tribunal (NCLT) under the newly-formed Insolvency and Bankruptcy Code.Essar Steel had challenged the RBI’s decision claiming that the manner of selection of the 12 companies was arbitrary. It had pointed that that it was in discussions with Standard Chartered Bank till June 21 over a possible restructuring plan which was also … [Read more...] about Gujarat HC Denies Relief To Essar Steel Against RBI’s Order to Initiate Insolvency Proceedings [Read Judgment]
Can Flat Buyers initiate insolvency proceedings against Builders under the Insolvency & Bankruptcy Code? This question assumes greater significance now because many real estate giants are facing insolvency proceedings in various Company Law Tribunals under the new I & B Code, 2016 across the country. Latest is the case of J.P. Infratech which is one of the largest real estate Developer in North India. Flat buyers are in absolute legal chaos.The ‘locus standi’ of the flat buyers for initiating Insolvency Resolution Process against the defaulting Real Estate Developer Companies is a grey area. Under Chapter II of the I & B Code, 2016, either the Financial Creditor, Operational Creditor or the Corporate Debtor can initiate Insolvency Resolution Process as per Sec.7, 9 and 10 respectively. But the legal question as to whether a flat purchaser who invested his hard earned money for purchasing residential/ commercial flats would come in any of the above … [Read more...] about Can Flat Buyers Initiate Insolvency Proceedings Against Builders Under The Insolvency & Bankruptcy Code?