As 26 June 2017 approaches – the date of entry into effect of the Recast EU Insolvency Regulation (2015/8484/EU) – we look in detail at the new provisions for co-ordinating the insolvency proceedings of members of a pan-European group of companies and consider whether the new proposals for co-operation will be compulsory, the practicalities of who will pay the co-ordinator’s fees and whether the creditors can have a say in the process. BACKGROUNDSome of the issues raised by pan-European insolvency proceedings involving groups of companies have been examined by the European Court of Justice in the Eurofood case (Case C-341/04 Eurofood IFSC Ltd), its third judgment interpreting Regulation 1346/2000 on insolvency proceedings, which is replaced and superseded by the Recast Regulation. We have previously commented more generally on the various changes being introduced by the Recast Regulation -see New Focus on Cross-Border Restructuring of Groups … [Read more...] about Cross-Border Co-operation in Group Insolvency Proceedings- Myth or Reality?
Regulation on insolvency proceedings 2015
The Supreme Court recently stayed proceedings in a matter at the National Company Law Tribunal’s Mumbai bench observing that there seems to be a prima facie case of a collusive effort between the promoters and the petitioners.The division bench of Justice Rohinton F Nariman and Justice Navin Sinha made the observation while hearing a civil appeal filed by investors of a collective investment scheme run by two companies namely Royal Twinkle Star Club Ltd and Citrus Check Inns Ltd.Senior advocates Shyam Divan and Sanjiv Sen along with Amit Karkhanis and Rahul Gaikwad of Gravitas Legal appeared on behalf of the investors in the matter. Case BackgroundTen of the investors in this collective investment scheme filed intervention applications before NCLT, Mumbai, after a petition for initiating corporate insolvency resolution process was admitted by NCLT. This petition was filed by investors of Royal Twinkle Star Club Ltd and Citrus Check Inns Ltd.Once their intervention application … [Read more...] about Suspecting Prima Facie Case Of Collusion Between Promoters & Petitioners, SC Stays Insolvency Proceedings At NCLT, Mumbai [Read Order]
Share Tweet Plus One Pin It Email Print By: Mukesh Chand September 24, 2018 10:55 pm Change Font Size “Exercising discretion and applying the law locally is hard enough (for a judge). Doing so in an international setting “ups and ante” especially when the notional claim amounts exceed $1million as they did in Lehman”[i] The above statement perhaps brings out the true state of challenges and complexities which cross border insolvency proceedings throw open at international arena. The challenges still linger on despite the system having handled the cases of the complexities and dimension such as Nortel Network Corp, Lehman Brothers and Maxwell Communications Corporation plc. This paper tries to capture the journey of Cross Border Insolvency (CBI) from “Grab rule to international co-operativism” as the world economic order attempts to maximize value of the enterprise for the collective benefit of stake holders. As the … [Read more...] about Cross Border Insolvency “From Teritorialism To Universalism To Modified Universalism”
1. The Negotiable Instruments (Amendment) Act, 2015The Act amends the Negotiable Instruments Act, 1881 and replaces the Negotiable Instruments (Amendment) Ordinance, 2015 which was promulgated on June 15, 2015. It stipulates that in case of a cheque being dishonored: If the cheque is delivered for collection to the account of the payee (person who receives the cheque), the jurisdiction lies in the area of the bank branch where the payee maintains an account, or If the payee presents a cheque to a bank in any other way, the jurisdiction lies in the area of the bank branch where the drawer (person who writes the cheque) maintains an account. (Section 142(2))It further provides that if the payee has filed a complaint against the drawer in a court with appropriate jurisdiction, all subsequent complaints against that person regarding cheque bouncing will be filed in the same court, irrespective of whether the cheque was delivered for collection or presented at a bank within … [Read more...] about Laws Enacted in 2015: A Snapshot
The Finance Minister Shri Arun Jaitley, in his Budget Speech 2015-16, had identified Bankruptcy Law Reform as a key priority for improving the ease of doing business and had announced that a comprehensive Bankruptcy Code, meeting global standards and providing necessary judicial capacity, will be brought in fiscal 2015-16.The Government had constituted a Bankruptcy Law Reform Committee under the Chairmanship of Dr. T. K. Viswanathan, former Law Secretary to look into various Bankruptcy related issues and give its report along with a draft Bill on the subject to the Government.Dr. Viswanathan submitted the Report of the Committee to the Finance Minister Shri Arun Jaitley in his office here today. The Report is in two parts: Volume I – titled “Rationale and Design” and Volume II – titled “Draft Insolvency and Bankruptcy Bill”. The Report, along with a brief summary of the recommendations, has been placed on the website of the Ministry of Finance … [Read more...] about Bankruptcy Law Reforms Committee (BLRC) submits draft Bill on Insolvency