IBBI

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC

Corporate Law - Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC during July to September 2020 Orders by Supreme Court M/s Marathe Hospitality Vs. Mahesh Surekha & Ors. [SLP (C) No. 8139/2020] The petitioner filed an appeal before the NCLAT. However, the NCLAT closed its functioning as one of its employees […]...

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IBBI Guideline on Use of Caveats, Limitations, & Disclaimers in Valuation Reports

Corporate Law - Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020 The Insolvency and Bankruptcy Board of India has notified guidelines regarding the use of Caveats, Limitations, and Disclaimers in Valuation Reports issued by Registered Valuers (RV).  These guidelines shall come ...

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Withdrawal of an application Under IBC

Corporate Law - The Insolvency and Bankruptcy Code has been introduced with an object of maximization of the value of the assets, promote entrepreneurship ,availability of credit, resolution of insolvency within the time bound manner balance the interest of all stakeholders including alteration of priority of payments to the Govt are some of the objects ...

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Role of Adjudicating Authority in Resolution Plan

Corporate Law - Under the Insolvency and Bankruptcy Code 2016, the role of the Committee of Creditors is very important. The COC consists of Financial Creditors only and Operational Creditors have no role in the COC expect that their dues are not less than 10% of the total debt in such case the Operational Creditors will find their […]...

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IBC Has Been Suspended For Defaults Occurring After 25/03/2020: Alternative Forums Where Creditors Can Approach For Recovery

Corporate Law - IBC Has Been Suspended For Defaults Occurring After 25/03/2020: Alternative Forums Where Creditors Can Approach For Recovery The Insolvency and Bankruptcy Code of 2015 (IB Code) was enacted and brought into force to safeguard the interest of all the stakeholders in the process of providing credit/debt to various establishments. However, t...

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IBBI Discussion Paper on Voluntary Liquidation Process

Corporate Law - Section 59 under Chapter V of Part II of Insolvency and Bankruptcy Code, 2016 (Code) read with the IBBI (Voluntary Liquidation Process) Regulations, 2017 (Voluntary Liquidation Regulations) provides that a Corporate Person (CP) may initiate voluntary liquidation proceedings if two conditions are met: (a) the CP has no debt or is in a posi...

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Guidelines for Appointment of IPs as Administrators under SEBI Regulations

Corporate Law - Guidelines for Appointment of Insolvency Professionals as Administrators under the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018...

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Guidelines on Use of Caveats, Limitations & Disclaimers by Registered Valuers

Corporate Law - (a) These Guidelines may be called the Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020. (b) These Guidelines shall come into force in respect of valuation reports in respect of valuations completed by Registered Valuers (RVs) on or after 1st October, 2020....

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Pre-qualification experience cannot be considered for Registration as Valuer

Corporate Law - IBBI find that the educational qualifications and experience possessed by the applicant does not adhere to Rule 4 read with Annexure IV of the Rules. With respect to the contention of the applicant that he has enrolled himself for a two year post graduate Master’s in Science (real estate valuation) degree and possess required experience...

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IBBI guideline on online Education by IPAs & RVOs

Corporate Law - Insolvency and Bankruptcy Board of India (Online Delivery of Educational Course and Continuing Professional Education by Insolvency Professional Agencies and Registered Valuers Organisations) Guidelines, 2020...

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HC upheld constitutional validity of Regulation 7A of IP Regulations

V.Venkata Sivakumar Vs IBBI (Madras High Court) - V. Venkata Sivakumar Vs IBBI (Madras High Court) In this writ petition, the Petitioner challenges the constitutional validity of Regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (the IP Regulations) read with Bye-Law 12A of the Insolvency and...

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SC transfers to itself petitions challenging IBC provisions on personal guarantors

IBBI Vs Lalit Kumar Jain & Ors. (Supreme Court of India) - IBBI Vs Lalit Kumar Jain & Ors. (Supreme Court) We are of the considered opinion that the Writ Petitions that are pending in the High Courts pertaining to the challenge to the Notification dated 15.11.2019 and related issues have to be transferred to this Court. Transfer of the Writ Petitions to...

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Corporate Debtor cannot raise dispute post approval of Resolution plan by Committee of Creditors: SC

Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court) - Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court) If all the factors that need to be taken into account for determining whether or not the corporate debtor can be kept running as a going concern have been placed before the Committee of Creditors and the CoC has taken a cons...

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SC allows 10 years time to Telecom Companies to pay AGR dues

Union of India Vs Association of Unified Telecom Service Providers of India Etc (Supreme Court) - (i) That for the demand raised by the Department of Telecom in respect of the AGR dues based on the judgment of this Court, there shall not be any dispute raised by any of the Telecom Operators and that there shall not be any re­assessment. (ii) That, at the first instance, the respective Teleco...

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Section 215 of the IBC, 2016 is not mandatory: HC

Univalue Projects Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court) - Univalue Projects Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court) a) The NCLT has acted without jurisdiction and exceeded its jurisdiction that is limited within the four corners of Section 424 of the CA, 2013 by passing the impugned order in violation of Section 7(3)(a) of the IBC, 201...

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IBBI bars IP till he is exonerated of Criminal charges against him

Order No. IBBI/DC/48/2020 - (01/12/2020) - The DC also notes that the FIR against Mr. Mohan is yet to culminate into a charge sheet, however, the submission of Mr. Mohan that before issuing of the SCN, statutory requirements of section 217, 218, 219 and 220 of the Code were not complied with by the IBBI since no independent investigation was...

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IBBI directs IP accused of accepting amount for granting illegal favour to not to seek/accept any assignment till exoneration of charges

Order No. IBBI/DC/47/2020 - (01/12/2020) - The DC notes that a trap proceeding was conducted by CBI against Mr. Agarwal wherein he was caught accepting an amount of Rs. 3 lakhs from Mr. Amit Sarawgi (complainant to CBI). However, it has been contended by Mr. Agarwal that the said amount was accepted as a part refund of Rs. 10 lakhs illegally...

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Handing over control & custody of assets by IP to ex-management is violation of code: IBBI

Order No. IBBI/DC/46/2020 - (01/12/2020) - In the present case, after stay on further proceedings by the Hon’ble Supreme Court, Mr. Gupta handed over the control and custody of the assets to ex-management which was against the fundamental jurisprudence of the Code relating to creditor in control mechanism. His conduct is in violation of ke...

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Filing of list of creditors under clause (ca) of sub-regulation (2) of regulation 13 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Circular No. IBBI/CIRP/36/2020 - (27/11/2020) - Insolvency and Bankruptcy Board of India 7th Floor, Mayur Bhawan, Connaught Place, New Delhi – 110001 CIRCULAR No. IBBI/CIRP/36/2020 27th November, 2020 To All Registered Insolvency Professionals All Recognised Insolvency Professional Entities All Registered Insolvency Professional Agencies (B...

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IBBI warns PVAI-VPO to be extremely careful in recommending applications for registration as valuers

Order No. IBBI/Valuation/Disc./2/2020 - (24/11/2020) - In the present case, PVAI-VPO is an RVO recognized under sub-rule (5) of rule 13 of the Valuer Rules. It allowed ineligible candidates to be enrolled as members of its organization even though they did not have proper credentials as per the eligibility norms, qualification and forwarded the applicat...

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Recent Posts in "IBBI"

IBBI bars IP till he is exonerated of Criminal charges against him

Order No. IBBI/DC/48/2020 (01/12/2020)

The DC also notes that the FIR against Mr. Mohan is yet to culminate into a charge sheet, however, the submission of Mr. Mohan that before issuing of the SCN, statutory requirements of section 217, 218, 219 and 220 of the Code were not complied with by the IBBI since no independent investigation was conducted […]...

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IBBI directs IP accused of accepting amount for granting illegal favour to not to seek/accept any assignment till exoneration of charges

Order No. IBBI/DC/47/2020 (01/12/2020)

The DC notes that a trap proceeding was conducted by CBI against Mr. Agarwal wherein he was caught accepting an amount of Rs. 3 lakhs from Mr. Amit Sarawgi (complainant to CBI). However, it has been contended by Mr. Agarwal that the said amount was accepted as a part refund of Rs. 10 lakhs illegally […]...

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Handing over control & custody of assets by IP to ex-management is violation of code: IBBI

Order No. IBBI/DC/46/2020 (01/12/2020)

In the present case, after stay on further proceedings by the Hon’ble Supreme Court, Mr. Gupta handed over the control and custody of the assets to ex-management which was against the fundamental jurisprudence of the Code relating to creditor in control mechanism. His conduct is in violation of key procedural norm of keeping with him [&...

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Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC during July to September 2020 Orders by Supreme Court M/s Marathe Hospitality Vs. Mahesh Surekha & Ors. [SLP (C) No. 8139/2020] The petitioner filed an appeal before the NCLAT. However, the NCLAT closed its functioning as one of its employees […]...

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Posted Under: Corporate Law |

Filing of list of creditors under clause (ca) of sub-regulation (2) of regulation 13 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Circular No. IBBI/CIRP/36/2020 (27/11/2020)

Insolvency and Bankruptcy Board of India 7th Floor, Mayur Bhawan, Connaught Place, New Delhi – 110001 CIRCULAR No. IBBI/CIRP/36/2020 27th November, 2020 To All Registered Insolvency Professionals All Recognised Insolvency Professional Entities All Registered Insolvency Professional Agencies (By mail to registered email addresses and...

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IBBI Guideline on Use of Caveats, Limitations, & Disclaimers in Valuation Reports

Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020 The Insolvency and Bankruptcy Board of India has notified guidelines regarding the use of Caveats, Limitations, and Disclaimers in Valuation Reports issued by Registered Valuers (RV).  These guidelines shall come ...

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Posted Under: Corporate Law |

IBBI Discussion Paper on Voluntary Liquidation Process

Section 59 under Chapter V of Part II of Insolvency and Bankruptcy Code, 2016 (Code) read with the IBBI (Voluntary Liquidation Process) Regulations, 2017 (Voluntary Liquidation Regulations) provides that a Corporate Person (CP) may initiate voluntary liquidation proceedings if two conditions are met: (a) the CP has no debt or is in a posi...

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Posted Under: Corporate Law |

IBBI warns PVAI-VPO to be extremely careful in recommending applications for registration as valuers

Order No. IBBI/Valuation/Disc./2/2020 (24/11/2020)

In the present case, PVAI-VPO is an RVO recognized under sub-rule (5) of rule 13 of the Valuer Rules. It allowed ineligible candidates to be enrolled as members of its organization even though they did not have proper credentials as per the eligibility norms, qualification and forwarded the applications of candidates who did not meet [&he...

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Undertaking assignment as IRP after 31.12.2019 without holding a valid AFA

Order No. IBBI/DC/45/2020 (24/11/2020)

In view of the fact that ICSI Institute of Insolvency Professionals has already given warning to Mr. Nitesh Kumar Sinha for undertaking assignment as Interim Resolution Professional after 31.12.2019 without holding a valid AFA in the matter of Terrence Alloys Private Limited, the DC, in exercise of the powers conferred under Regulation 11...

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Regulation 7A of IP regulations not applies to appointment as liquidator prior to 31.12.2019

Notification No. IBBI/DC/44/2020 (19/11/2020)

The IBBI had issued on 27th August, 2020, the SCN to Mr. Kamal Garg for accepting the assignment of the voluntary liquidation of UAS International Trip Support Private Limited (CD) after 31st December 2019 without holding a valid Authorisation for Assignment (AFA) from his IPA. The public announcement was made on 12th January 2020. The [&...

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Withdrawal of an application Under IBC

The Insolvency and Bankruptcy Code has been introduced with an object of maximization of the value of the assets, promote entrepreneurship ,availability of credit, resolution of insolvency within the time bound manner balance the interest of all stakeholders including alteration of priority of payments to the Govt are some of the objects ...

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Posted Under: Corporate Law |

IBBI found IP guilty of accepting assignment as IRP after 31st December, 2019 without holding a valid AFA

Orders No. IBBI/DC/43/2020 (13/11/2020)

In the present matter it is observed that, Mr. Rajagopal had provided his consent to accept the assignment in Form-2 to Indian Overseas Bank on 01.03.2019 prior to the amendment made to IP regulation for CIRP of Coastal Energy Private Limited, before 31st December, 2019. However, it is observed that the date of commencement of […]...

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IBBI order IP to undergo pre-registration educational course

Order No. IBBI/DC/42/2020 (13/11/2020)

(i) Mr. Kamalesh Kumar Singhania shall undergo pre-registration educational  course from the IPA of which he is a member. (ii) Mr. Kamlesh Kumar Singhania shall not take any new assignment/ process under the Code without compliance of the above direction....

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Mistakes committed by insolvency professionals in conduct of corporate insolvency resolution process

Facilitation/005/2020 (13/11/2020)

The Insolvency and Bankruptcy Code, 2016 (Code) provides a market process, popularly known as called corporate insolvency resolution process (CIRP), for time bound revival of viable corporate debtors (CD) and closure of unviable ones....

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IBBI (Liquidation Process) (Fourth Amendment) Regulations, 2020

Notification No. IBBI/2020-21/GN/REG067 (13/11/2020)

(1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020. (2) They shall come into force on the date of their publication in the Official Gazette....

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IBBI (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020

Notification No. IBBI/2020-21/GN/REG066 (13/11/2020)

These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020.They shall come into force on the date of their publication in the Official Gazette....

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IBBI (Information Utilities) (Amendment) Regulations, 2020

Notification No. IBBI/2020-21/GN/REG065 (13/11/2020)

(1) These regulations may be called the Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2020. (2) They shall come into force on the date of their publication in the Official Gazette....

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IBBI amends Regulations relating to corporate insolvency proceedings

Press Release No. IBBI/PR/2020/16 (13/11/2020)

The resolution plan usually provides payment of debts to the creditors of the CD. In the interest of transparency, the IBBI amended the Regulations to require the RP to intimate each claimant the principle or formulae for payment of debts under a resolution plan, within 15 days of the order of the AA approving such resolution plan....

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IBBI DC disposes SCN issued against Mr. Vinod Kumar Kothari without any direction

Notification No. IBBI/DC/41/2020 (11/11/2020)

The IBBI had issued on 28th August, 2020, the SCN to Mr. Vinod Kumar Kothari for accepting the assignment as the Liquidator in the Voluntary Liquidation of IL&FS Portfolio Management Services Limited after 31st December 2019 without holding a valid Authorisation for Assignment (AFA) issued to him by his IPA. Mr. Kothari in his written...

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Requirement of holding valid AFA also applies to IPs undertaking voluntary liquidation process under IBC

Order No. IBBI/DC/40/2020   (09/11/2020)

In the present matter, it is observed that, Mr. Dua had mentioned the acceptance of assignment of voluntary liquidation in matter of I V Share and Stock Brokers Ltd before 31.12.2020 however, the documents were not signed until February by one of the key directors. Mr. Dua had given his written consent to act as […]...

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HC upheld constitutional validity of Regulation 7A of IP Regulations

V.Venkata Sivakumar Vs IBBI (Madras High Court)

V. Venkata Sivakumar Vs IBBI (Madras High Court) In this writ petition, the Petitioner challenges the constitutional validity of Regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (the IP Regulations) read with Bye-Law 12A of the Insolvency and Bankruptcy Board of India (IBBI) (Model...

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Expression of Interest to Act as an IRP, Liquidator, RP and BT

File No. IP-12011/1/2020-IBBI (02/11/2020)

IBBI had prepared and shared a panel of IPs with Adjudicating Authority (NCLT and DRT) in June 2020 which was applicable for appointment of IPs as IRPs, Liquidators, RPs and BTs, from July 1, 2020 to November 25, 2020. The aforesaid panel is expiring on November 25, 2020 and the Board has to submit fresh panel to Adjudicating Authority (N...

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SC transfers to itself petitions challenging IBC provisions on personal guarantors

IBBI Vs Lalit Kumar Jain & Ors. (Supreme Court of India)

IBBI Vs Lalit Kumar Jain & Ors. (Supreme Court) We are of the considered opinion that the Writ Petitions that are pending in the High Courts pertaining to the challenge to the Notification dated 15.11.2019 and related issues have to be transferred to this Court. Transfer of the Writ Petitions to this Court would avoid […]...

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Role of Adjudicating Authority in Resolution Plan

Under the Insolvency and Bankruptcy Code 2016, the role of the Committee of Creditors is very important. The COC consists of Financial Creditors only and Operational Creditors have no role in the COC expect that their dues are not less than 10% of the total debt in such case the Operational Creditors will find their […]...

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Posted Under: Corporate Law |

IBBI suspends registration of IP for not disclosing Pending Criminal proceeding at the time of Registration

NA (30/10/2020)

In this case, petitioner was granted registration by the Board on 22nd February, 2017. Petitioner concealed the material information about pending CBI case against him at the relevant time. Subsequent acquittal or positive remarks as claimed by him are of no consequence as the aforesaid criminal proceeding  was pending before Hon’ble ...

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IBBI penalises IP for not taking due diligence while performing duties as an IRP

order No. IBBI/DC/37/2020 (29/10/2020)

In view of the above, and the fact of failure to bring to the notice of the CoC by Mr. Bhat as to the moratorium imposed on the transfer of the asset and to ratify and approve the payment of EMIs to the HDFC and payment of the outstanding dues to the vendors/ service providers […]...

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Without AFA, an IP is not eligible to undertake assignments

Order No. IBBI/DC/36/2020 (29/10/2020)

In the present matter, DC notes that Mr. Dave gave consent for the CIRP of the CD on 2nd April, 2018 which was much prior to 31st December, 2019. However, due to various other issues, the CIRP of the CD commenced vide order dated 29th January, 2020. This commencement Order was only communicated to Mr. […]...

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IP violates code by charging fees as percentage of amount distributed or realised

Interim Order No. IBBI/DC/35(INTERIM)/2020 (29/10/2020)

Taking a percentage of the amount distributed/ amount realised out of the current assets of working capital of the CD by the Liquidator as his fee would only serve to vitiate the purpose of the Code. Instead of running the Company effectively, the liquidator may engage in distributing the working capital to earn a quick […]...

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IBBI notifies Format for Serving a Copy of Application for Initiation of CIRP

Circular No. IBBI/LAD/35/2020 (29/10/2020)

Insolvency and Bankruptcy Board of India 7th Floor, Mayur Bhawan, Connaught Place, New Delhi – 110 001 Circular No. IBBI/LAD/35/2020 Dated: 29th October, 2020 To All Registered Insolvency Professionals All Recognised Insolvency Professional Entities All Registered Insolvency Professional Agencies (By mail to registered email addresses a...

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IBBI invites EOI from prospective eligible institutions for conducting Graduate Insolvency Programme

Notification No. BOARD-22/3/2019-IBBI (29/10/2020)

The Insolvency and Bankruptcy Board of India (IBBI) invites Expression of Interest (EoI) from eligible institutions for being considered for conducting a two-year Graduate Insolvency Programme (GIP) on regular basis....

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Mr. Santosh Kumar Shukla takes charge as Executive Director, IBBI

Press Releases No. IBBI/PR/2020/15 (19/10/2020)

Mr. Santosh Kumar Shukla took charge as Executive Director, Insolvency and Bankruptcy Board of India (IBBI) in New Delhi today. Immediately before joining IBBI, he was serving as Chief General Manager in the Enforcement Department of the Securities and Exchange Board of India (SEBI)....

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Accepting of assignment as Liquidator without holding valid AFA

Order No. IBBI/DC/34/2020 (15/10/2020)

The DC further notes that an IP who is more than 70 years of age cannot make an application for the grant of AFA. Therefore, he could not apply for obtaining grant of AFA and hence, could not hold AFA....

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Acceptance of voluntary liquidation assignment without holding valid AFA contravenes IP Regulations

No. IBBI/DC/33/2020 (13/10/2020)

In the present matter, Mr. Kumar accepted the assignment of voluntary liquidation in matter of Sambodhi Healthcare Private Limited and Modern Cold Storage Limited without holding valid AFA after 31.12.2019 which is in express contravention of regulation 7A of IP Regulations, which is applicable to voluntary liquidation as well. In consequ...

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Accepting CIRP assignment after 31.12.2019 without holding a valid AFA

Order No. IBBI/DC/32/2020 (12/10/2020)

In view of the fact that ICSI Institute of Insolvency Professionals has already taken disciplinary action against Mr. Pranav Kumar for accepting assignment as Interim Resolution Professional after 31st December 2019 without holding a valid AFA in the matter of Crayons Advertising Private Limited, the DC, in exercise of the powers conferre...

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Guideline for Meetings of Disciplinary Committee & Appellate Panel of RVOs

Circulars No. IBBI/RVO/34/2020 (09/10/2020)

It has been observed that the RVOs have been following different practices in conducting the meetings of the DC and AP. Accordingly, the Board advises the RVOs to ensure the following while conducting the meetings of the DC and AP of the RVOs:...

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IBC Has Been Suspended For Defaults Occurring After 25/03/2020: Alternative Forums Where Creditors Can Approach For Recovery

IBC Has Been Suspended For Defaults Occurring After 25/03/2020: Alternative Forums Where Creditors Can Approach For Recovery The Insolvency and Bankruptcy Code of 2015 (IB Code) was enacted and brought into force to safeguard the interest of all the stakeholders in the process of providing credit/debt to various establishments. However, t...

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Posted Under: Corporate Law |

Without AFA, an IP is not eligible to undertake assignments: IBBI

Order No. IBBI/DC/31/2020 (01/10/2020)

one of the essential conditions for undertaking any assignment by an IP is that he should have a valid AFA which is issued by the IPA with which he is enrolled. In other words, without AFA, an IP is not eligible to undertake assignments or conduct various processes thereof after 31st December, 2019. Regulation 7A was […]...

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Limited Insolvency Examination w.e.f 1st January 2021

Press Release No. IBBI/PR/2020/13 (30/09/2020)

Insolvency and Bankruptcy Board of India (Press Release) No. IBBI/PR/2020/13 30th September 2020 Limited Insolvency Examination w.e.f 1st January 2021 The Insolvency and Bankruptcy Board of India hereby publishes the syllabus and details of the Limited Insolvency Examination (Examination) under regulation 3 (3) of the Insolvency and Bankr...

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Signing of financial statements of Company under CIRP

Corporate insolvency resolution process (CIRP) can be commenced when a corporate debtor commits a default – section 4(1) of Insolvency and Bankruptcy Code, 2016 (IBC). The default should be minimum Rs. one lakh. The amount can be increased by Central Government but shall not exceed Rs. one crore – proviso to section 4(1). &#...

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Posted Under: Corporate Law |

Suspension of initiation of corporate insolvency resolution process

Notification No. S.O. 3265(E) (24/09/2020)

Section 10A. Notwithstanding anything contained in sections 7, 9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of nine months or such further period, not exceeding one year from such date, as may be no...

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Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020

Notification No. G.S.R. 583(E) (24/09/2020)

These rules may be called the Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020. (2) These rules shall come into force from the date of their publication in the Official Gazette....

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Insolvency and Bankruptcy Code (Second Amendment) Act, 2020

Bill No. 17 of 2020 (23/09/2020)

(1) This Act may be called the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020. It shall be deemed to have come into force on the 5th day of June, 2020....

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IBC (Second Amendment) Act, 2020 introduced in Rajya Sabha

Bill No. XXXI of 2020 (20/09/2020)

Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 was introduced in Rajya Sabha on 15th September 2020. It shall be deemed to have come into force on the 5th day of June, 2020....

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Appointment by RP of unregistered valuer violates IBC, 2016

Order No. IBBI/DC/30/2020 (18/09/2020)

DC finds that Mr. Dinesh Sood, the RP, has appointed M/s Crest Capital Group Pvt. Ltd., a company which was not a registered valuer, as a valuer for valuation of assets of three CDs, namely M/s BRYS International Pvt. Ltd., Neo Infrastructure Pvt. Ltd. and Ujala Pumps Pvt. Ltd. This conduct of Mr. Sood is in contravention of the following...

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Registration as Valuer rejected on failure to establish Eligibility

NA (17/09/2020)

Eligibility of the applicant for registration as Valuer, as prescribed under the Rules, is not established. Thus, in exercise of the powers conferred on the Authority under rule 6 (9) (b) of the Companies (Registered Valuers and Valuation) Rules, 2017, the application  for registration as a RV in asset class of L&B is rejected. INSOL...

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Registration as Valuer rejected for not responding to clarifications asked by IBBI

NA (17/09/2020)

It is observed that the declaration made by the applicant in his application, regarding his professional experience, is not corroborated by the documents available on record. This goes against the following affirmation made by the applicant under section G3 of the application form – “This application and the information furnished ...

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Appointment of registered valuer & Disciplinary proceedings

The appointment of registered valuers in the corporate insolvency resolution process by the resolution professional within the time limit is made mandatory. IBBI Circular IBBI/RV/019/2018 (w.e.f. 01.02.2019) specifies that only valuers registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017 may be appoi...

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Posted Under: Corporate Law |

Role of Govt and its Agencies in Corporate Insolvency Resolution & Liquidation Processes

Facilitation/004/2020 (12/09/2020)

The Insolvency and Bankruptcy Code, 2016 (Code) consolidates and amends the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the in...

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Assignment cannot be accepted as Voluntary Liquidator without holding a valid AFA

No. IBBI/DC/29/2020 (11/09/2020)

In the matter of Mr. Ravi Sharma, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016 In the present matter, Mr. Sharma accepted the assignment of voluntary liquidation in matter of Indian Transelectric Company Limited on 2nd March 2020 and A.B.S. Ent...

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IBBI (Annual Report) Amendment Rules, 2020

Notification No. G.S.R. 563(E) (10/09/2020)

Insolvency and Bankruptcy Board of India (Annual Report) Amendment Rules, 2020- Dates for submission of the annual report referred to in rule 3 of annual accounts for audit leading to the issue of Audit Certificate by the Comptroller and Auditor General of India and for submission to the Ministry of Corporate Affairs for timely submission...

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Governance Issues in Insolvency Professional Agencies (IPAs)

NA (10/09/2020)

The insolvency profession has a two-tier regulatory architecture with Insolvency and Bankruptcy Board of India (IBBI or Board) as the principal regulator, and the three Insolvency Professional Agencies as frontline regulators....

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Comments on Discussion Paper on Corporate Liquidation Process under IBC 2016

The Insolvency and Bankruptcy Board of India as per discussion paper dated 26th August, 2020 asked for comments on 2 issues being (i) determining the corpus of liquidation estate and (ii) the entitlement of stakeholders so that new regulations is brought. Further new concept of NRRA has been brought in this discussion paper which means [&...

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Posted Under: Corporate Law |

IBBI penalise for appointing person other than Registered Valuer for carrying out Valuation

IBBI penalise for appointing person other than Registered Valuer for carrying out Valuation IBBI regulator for Insolvency Professional as well as Registered Valuer by virtue of order No. IBBI/DC/27/2020 dated 24th August 2020, barred Insolvency Professional to seek or accept any process or assignment or render any services under the Code ...

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Posted Under: Corporate Law |

Guidelines for Appointment of IPs as Administrators under SEBI Regulations

Guidelines for Appointment of Insolvency Professionals as Administrators under the Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018...

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Posted Under: Corporate Law |

Valuers registered with IBBI under MCA Rules can only be appointed as IP

Order No. IBBI/DC/28/2020 (04/09/2020)

The DC further finds that despite the IBBI Circular No. IBBI Circular IBBI/RV/019/2018 dated 17th October 2018 (which came into effect from 1st February 2019) which clearly states that no person other than a RV will be appointed to conduct valuation under the Code, and Circular dated 13th August 2019 that such appointment is illegal, [&he...

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Undertaking Valuation Assignment in CIRP before Registering as valuer violates Model Code of Conduct

IBBI/Valuation/Disc./1/2020 (04/09/2020)

Mr Abhishek Ahuja, despite having mandatory training and qualifying the valuers examination, has displayed his lack of understanding of the provisions of the Rules and standards of valuation profession. He allowed the resolution professional to engage him as the registered valuer in a CIRP even though he was not registered as a valuer and...

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Corporate Debtor cannot raise dispute post approval of Resolution plan by Committee of Creditors: SC

Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court)

Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court) If all the factors that need to be taken into account for determining whether or not the corporate debtor can be kept running as a going concern have been placed before the Committee of Creditors and the CoC has taken a conscious decision to approve […]...

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SC allows 10 years time to Telecom Companies to pay AGR dues

Union of India Vs Association of Unified Telecom Service Providers of India Etc (Supreme Court)

(i) That for the demand raised by the Department of Telecom in respect of the AGR dues based on the judgment of this Court, there shall not be any dispute raised by any of the Telecom Operators and that there shall not be any re­assessment. (ii) That, at the first instance, the respective Telecom Operators shall make the payment of 10...

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Guidelines on Use of Caveats, Limitations & Disclaimers by Registered Valuers

(a) These Guidelines may be called the Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020. (b) These Guidelines shall come into force in respect of valuation reports in respect of valuations completed by Registered Valuers (RVs) on or after 1st October, 2020....

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Posted Under: Corporate Law |

Case review of State Bank of India Vs Metenree Ltd

This article is about judgment of NCALT/NCLT  in the matter of STATE BANK OF INDA V. M/S METENERE Ltd, on aspect of Interim Resolution Professional (herein refers as IRP). NCALT affirmed in the judgement in which it has been held that an ex-employee of creditor, having long association with creditor should be substituted, because he [&he...

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Posted Under: Corporate Law |

Analysis of report of Committee of Expert for Valuation Bill, 2020

This article is a review and critical analysis of a report submitted by a committee of experts constituted in April 2019 to examine the need for an institutional framework for regulation and development of asset valuation professionals In India, the practice of valuing assets – a key component of the economic system that also stretches ...

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Posted Under: Corporate Law |

Is Moratorium required at Pre-admission stage?

Under Insolvency and Bankruptcy code, the application for initiation of corporate insolvency Resolution Proceedings can be initiated by 1) Financial Creditor under section 7(1) 2) Operational Creditor under section 9(1) 3) Corporate Debtor under section 10(1) Financial creditor means as per the section 5(7)  the person to whom the financ...

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Posted Under: Corporate Law |

Discussion Paper on Corporate Liquidation Process

NA (26/08/2020)

Resources are scarce and have competing requirements. Further, the market and organizational failures do happen in a dynamic market conditions, requiring the reallocation of capital from inefficient to efficient uses and redeployment from failing companies to the ones which have better ideas about the ways and means to enhance the efficie...

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Financial Service Providers in Insolvency Law

INSOLVENCY FRAMEWORK FOR FINANCIAL SERVICE PROVIDERS (FSPs) In the Indian Insolvency scenario the insolvency and bankruptcy is governed by a uniform law of Insolvency and Bankruptcy Code, 2016 (Code) which came into force in 2016. In the almost 4 years of its inception, the Code has seen a lot of important judgments and orders being [&hel...

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Posted Under: Corporate Law |

Unregistered valuer Appointment violates CIRP Regulations & IBC 2016

Order No. IBBI/DC/27/2020 (24/08/2020)

Mr. Rajneesh Singhvi, the RP, has appointed Mr. Abhishek Ahuja, who was not a registered valuer as on the date of his engagement, as a valuer for valuation of assets of CD. This conduct of Mr. Singhvi is in contravention of the following provisions of the Code and Regulations:- I (a) Clause (d) of sections […]...

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Section 215 of the IBC, 2016 is not mandatory: HC

Univalue Projects Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court)

Univalue Projects Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court) a) The NCLT has acted without jurisdiction and exceeded its jurisdiction that is limited within the four corners of Section 424 of the CA, 2013 by passing the impugned order in violation of Section 7(3)(a) of the IBC, 2016. Furthermore, the impugned […]...

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Pre-qualification experience cannot be considered for Registration as Valuer

NA (19/08/2020)

IBBI find that the educational qualifications and experience possessed by the applicant does not adhere to Rule 4 read with Annexure IV of the Rules. With respect to the contention of the applicant that he has enrolled himself for a two year post graduate Master’s in Science (real estate valuation) degree and possess required experience...

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Analysis of SC judgment in the case of Babulal Vardharji Gurjar

Babulal Vardharji Gurjar Vs Veer Gurjar Aluminium Industries Pvt. Ltd. & anr. (Supreme Court)

Babulal Vardharji Gurjar Vs Veer Gurjar Aluminium Industries Pvt. Ltd. & anr. (Supreme Court) While setting aside the Order dated 14th May, 2019 of the NCLAT in Company Appeal (AT) Insolvency No. 549 of 2018 and Order dated 9th August, 2018 of the National Company Law Tribunal, Mumbai Bench in CP(IB)-488/I&BP/MB/2018, on the groun...

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Madras HC dismisses plea challenging levy of IBBI on IP Fees

CA. Venkata Siva Kumar Vs IBBI (Madras High Court)

Madras High Court upheld the requirement which mandates that the IP should pay a fee calculated at 0.25% of the professional fee earned for services rendered as an IP in the preceding financial year to the IBBI....

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Avoidance Transactions – Red Flags | IBBI- RP | Liquidator

Facilitation/003/2020 (07/08/2020)

The Insolvency and Bankruptcy Code, 2016 (the Code) mandates the Resolution Professional (RP) and the liquidator to determine if the Corporate Debtor (CD) has been subject to Avoidance transactions such as preferential transactions, fraudulent transactions, undervalued transactions, and extortionate transactions in the past, and if so, ca...

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IBBI (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020

F. No. IBBI/2020-21/GN/REG064/Press Release No. No. IBBI/PR/2020/10 (07/08/2020)

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020 today....

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IBBI Research Initiative, 2019 (Updated as on 31st July, 2020)

This Initiative aims to promote research - legal, economic and interdisciplinary - and discourse in areas relevant for the evolving insolvency and bankruptcy regime in general, and that in India. For the purpose of this Initiative, ‘researcher’ means an individual, a team of individuals or an academic Institute, who or which undert...

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Posted Under: Corporate Law |

Important Judgment and Orders related to Liquidation Process

Notification No. Facilitation/002/2020 (05/08/2020)

The Adjudicating Authority (AA), the National Company Law Appellate Tribunal (NCLAT), and High Courts, through their orders and judgements, have guided liquidators in the conduct of liquidation process. This communication presents a few significant directions and observations from these orders and judgements, which an IP may find useful. ...

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IBBI (Liquidation Process) (Third Amendment) Regulations, 2020

Press release No. IBBI/PR/2020/08 & Notification No. IBBI/2020-21/GN/REG062 (05/08/2020)

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 today....

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IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020

Press Release No. IBBI/PR/2020/09 & Notification No. IBBI/2020-21/GN/REG.063 (05/08/2020)

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020 today....

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NCLT Kolkata | Applicability of Section 32A IBC on Liquidation Proceedings

NCLT Kolkata held that non-obstante provision of Section 32A of Insolvency & Bankruptcy Code, 2016 is also applicable to liquidation proceedings....

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Posted Under: Corporate Law |

What, Why and How of Pre-Pack Insolvency

Pre-pack insolvency means a pre-planning between the creditor and the purchaser prior to the insolvency proceedings wherein they negotiate on the terms of sale of assets and other requirements before applying to the courts/ tribunals for insolvency proceeding....

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Posted Under: Corporate Law |

5 year post qualification experience must for registration as RV: IBBI

(21/07/2020)

IBBI held that addition to the issue related to valid educational qualification, it is to point out that the applicant does not possess the mandatory experience of 5 years after obtaining the requisite educational qualification. On this ground too, the application does not survive. INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (Authority speci...

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IBBI guideline on online Education by IPAs & RVOs

Insolvency and Bankruptcy Board of India (Online Delivery of Educational Course and Continuing Professional Education by Insolvency Professional Agencies and Registered Valuers Organisations) Guidelines, 2020...

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Posted Under: Corporate Law |

Dispute Informed or Raised or Filed After issuance of Notice U/s. 8(1) of IBC, 2016

Dispute Informed or Raised or Filed After Issuance of Notice U/S 8(1) of Insolvency and Bankruptcy Code, 2016.  FIRST CASE- NO PRE-EXISTING DISPUTE, IF THE SAME WAS INFORMED AFTER ISSUANCE OF NOTICE U/S 8(1).  [In the matter of M/s. Next Education India Pvt. Ltd. Vs. M/s. K12 Techno Services Pvt. Ltd. before NCLAT, NEW DELHI, […]...

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Posted Under: Corporate Law |

Whether the order of liquidation can be reversed ?

As per Insolvency and Bankruptcy code 2016, there are two stages. 1) Resolution 2) Liquidation. The Liquidation order will be pronounced when the resolution of the insolvency is failed. Hence as per the code, the liquidation stage is final one. Liquidation order is once passed it is irreversible. Hence the Tribunals will pass the order [&...

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Posted Under: Corporate Law |

Section 10A in IBC 2016: No fresh insolvency for default during lockdown

The President of India through Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 (No. 9 of 2020) on 5th June, 2020 announced some major relief for the corporate debtors as COVID 19 pandemic  owing to the  nationwide lockdown is in force since 25th March 2020 has resulted in disruption in business, financial markets and economy ...

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Posted Under: Corporate Law |

Coping with COVID-19: IBC

The outbreak of coronavirus pandemic resulted in lockdown 1 in India on March 25, 2020. The whole country was on a stand-still and all the work had been paused for an indefinite period. Only the medical sector as well as the essential commodities sector was functioning. With companies’ operations at a halt, various companies, partnershi...

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Posted Under: Corporate Law |

Preferential Transactions under IBC 2016

Under the Insolvency and Bankruptcy code 2016, section 43 is dealt with Preferences if any given by the Corporate Debtor before and during the insolvency. This is a very important section and every Insolvency Professional should keep this in mind. Success of the insolvency depends upon timely completion of the process of insolvency and al...

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Posted Under: Corporate Law |

HC Stays Penalty order passed by IBBI against alleged Moratorium Term violations

Mohan Lal Jain Vs IBBI (Delhi High Court)

Stay against Penalty order under IBC allowed against petitioner who has violated Terms of Moratorium...

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NCLT appointed liquidator liable to pay GST & Register

In re Mansi Oils and Grains Pvt. Ltd. (GST AAR West Bengal)

In re Mansi Oils and Grains Pvt. Ltd. (GST AAR West Bengal) Whether a liquidator appointed by NCLT is liable to pay GST on asset sales and required to get registered? The liquidator is appointed under section 34 (1) of IBC after NCLT initiates liquidation in terms of section 33 of IBC. As the applicant – […]...

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IBBI (Insolvency Professionals) (Second Amendment) Regulations, 2020 

Notification No. IBBI/2020-21/GN/REG061 (30/06/2020)

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, (2) They shall come into force on the date of publication in the Official Gazette....

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IBC guideline to recommend name of an IP for appointment as IRP or liquidator

Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2020 Date of issue of Guidelines: 2nd June, 2020 Applicability: with effect from 1st July, 2020. There are two types of the Insolvency 1. Corporate Insolvency 2. Individual Insolve...

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Posted Under: Corporate Law |

IBBI cancels registration of IP as criminal proceedings were pending against him

NA (11/06/2020)

The submissions made by Mr. Lebaka have been examined and it is observed that he has failed to make a required disclosure about the pendency of the criminal proceedings against him before the Hon’ble Court....

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IBBI ask IP to Pass Limited Insolvency Examination again

Order No. IBBI/DC/26/2020 (08/06/2020)

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (Disciplinary Committee) No. IBBI/DC/26/2020 8th June 2020 Order In the matter of Mr. Vijay Kumar Garg, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016 read with Section 220 of the Insolvency and Bankruptcy...

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Govt suspends Section 7, 9 and 10 of IBC 2016

Suspension of Section 7, 9 and 10 of Insolvency Bankruptcy Code: The IBC (Amendment) Ordinance, 2020 Lately, on third day of June, 2020 Union Cabinet cleared the proposal for suspension of Section 7, 9 and 10 of Insolvency Bankruptcy Code, 2016 (Code) for the period of six months starting from 25th of March, 2020. Thus, […]...

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Posted Under: Corporate Law |

Analysis of IBC (Amendment) Ordinance, 2020

Analysis of  Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 i.e. IBC (Amendment) Ordinance, 2020 Reasons of Amendment: 1. The entire ecosystem for implementation of the Insolvency and Bankruptcy Code is in Place, 2. The Provisions relating to corporate insolvency resolution process and liquidation process for corporate person...

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Posted Under: Corporate Law |

Guideline for appointment of IP as IRP, Liquidators, RP & Bankruptcy Trustees

Insolvency Professionals to act as Interim Resolution Professionals (IRPs), Liquidators, Resolution Professionals (RPs) and Bankruptcy Trustees (Recommendation) Guidelines, 2020 2nd June, 2020 Corporate Insolvency The Insolvency and Bankruptcy Board of India (Board) is required under the Insolvency and Bankruptcy Code, 2016 (Code) to reco...

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Posted Under: Corporate Law |

IBBI suspends registration of IP for 3 Month for negligence during CIRP

Order No. IBBI/DC/25/2020 (02/06/2020)

During the personal e-hearing, IP submitted that the errors committed by him during CIRP were bonafide mistakes and not intentional. DC observes that IP displayed a negligent approach during the conduct of CIRP...

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Forensic Review in Insolvency and Bankruptcy Code 2016

Transactions specifically related to Sections 43 to 46 and Section 66 of the Insolvency and Bankruptcy Code, 2016 are being looked at by the forensic experts. These sections deal with identifying preferential and undervalued transactions, and those deliberately entered into to defraud creditors. These sections also deal with identifying u...

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Posted Under: Corporate Law |

IBBI imposes penalty of ₹ 34 Lakh on IP for non-Adherence to provisions of IBC code

Notification No. IBBI/DC/24/2020 (30/05/2020)

Adherence to provisions of the code is the first and foremost duty of an IP. It is incumbent upon IPs to build and safeguard the reputation of the profession which should enjoy the trust of the society and inspire confidence of all the stakeholders....

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Summary of Orders related to Insolvency and Bankruptcy Code

Article copiles orders related to Insolvency and Bankruptcy Code of Supreme Court, High Courts, National Company Law Appellate Tribunal,  National Company Law Tribunal, Special Courts and Insolvency and Bankruptcy Board of India. A. Order of Supreme Court Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited Vs. Axis Ban...

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Posted Under: Corporate Law |

Insolvency and Bankruptcy Code, 2016: Analysis of Section 10’A’

Recently, on 24 April, a government official hinted at the introduction of Section 10A in the IBC as another move to safeguard the businesses from the rigours of IBC. Section 10A seeks to eclipse section 7,9,10 that provides for filing of applications for initiating the CIRP in case of a default for a minimum period of six months....

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Posted Under: Corporate Law |

Role of Resolution Professional / Liquidator in respect of Avoidance Transactions

Facilitation/001/2020 (08/05/2020)

Sections 25 and 35 of the Insolvency and Bankruptcy Code, 2016 (Code) enumerate the duties of a Resolution Professional (RP) and a Liquidator, respectively. These duties include certain actions in respect of avoidance transactions (preferential transactions, undervalued transactions, extortionate transactions, and fraudulent trading)....

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