IBC 2016

Fast Track Insolvency Procedure

Corporate Law - Insolvency and Bankruptcy code 2016 was introduced with the vision to ease the restructuring and insolvency resolutions of corporate person partnership firms & other specified persons. The provisions for Fast Track Insolvency Procedure are laid under Part-II, Chapter-4 of the code. The ambit of the said provision covers Small companie...

Conflict between IBC and PMLA

Corporate Law - Before discussing the above subject matter, let us first understand what PMLA is and what is IBC As per Insolvency and Bankruptcy code 2016, if any person who has taken any loan and committed default, then the application can be filed in front of the Hon!ble National Company Law Tribunal As per section 3(23) the […]...

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...

No fresh insolvency filling under IBC for further three months

Corporate Law - The Government has issued a fresh Notification No. S.O. 3265(E) dated 24th September, 2020 extending the suspension of Sections 7, 9 and 10 [meant no fresh insolvency filings could be made by financial creditors, operational creditors, and the corporate debtor itself] of the Insolvency and Bankruptcy Code by another three months. The susp...

Signing of financial statements of Company under CIRP

Corporate Law - 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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Govt Advisory to PSBs to moot action against personal guarantors of corporate debtors

Corporate Law - Department of Financial Services had issued as advisory dated 26.8.2020 to Public Sector Banks that they may consider putting in place a mechanism for monitoring the cases which may require initiation of individual insolvency process before NCLT...

19844 cases pending before NCLT

Corporate Law - As on 31st July, 2020, total 19,844 cases were pending before National Company Law Tribunal (NCLT), including 12,438 cases under Insolvency and Bankruptcy Code (IBC)....

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...

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....

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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Lease rentals from use & occupation of a cold storage unit is ‘Operational Debt’ u/s 5(21) of IBC 2016

Anup Sushil Dubey Vs National Agriculture Co-operative Marketing Federation of India Ltd. (NCLAT) - Lease rentals arising out of use and occupation of a cold storage unit which was for Commercial Purpose was an ‘Operational Debt’ as envisaged under Section 5 (21) of the Code....

Liquidation of Corporate Debtor should be last resort; SC Stays auction of properties of Corporate Debtor

Kridhan Infrastructure Pvt. Ltd. (Now Known As Krish Steel And Trading Pvt. Ltd) Vs. Venkatesan Sankaranaayan & Ors. (Supreme Court) - Kridhan Infrastructure Pvt. Ltd. (Now Known As Krish Steel And Trading Pvt. Ltd) Vs. Venkatesan Sankaranaayan & Ors. (Supreme Court) SC held that Liquidation of the Corporate Debtor should be a matter of last resort. The IBC recognizes a wider public interest in resolving corporate insolvencies ...

NCLT dismisses CIRP filed by Neesa Infrastructure Limited

M/s. Neesa Infrastructure Limited vs State Bank of India (NCLT) - M/s. Neesa Infrastructure Limited vs State Bank of India (NCLT) Advocate, Mr. Nipun Singhvi appeared on behalf of the Respondent. The order is pronounced in the open court, vide separate sheet. 1. Sanjay Gupta, claiming himself to be the authorised signatory, on behalf of M/s. Neesa Infrastructure L...

Liquidator decision is appealable under Section 42 of IBC, 2016

P.X. Xavier Vs. K. Joseph (Kerala High Court) - P.X. Xavier Vs. K. Joseph (Kerala High Court) Admittedly, the Liquidator had taken a decision. The decision taken by the liquidator is appealable under Section 42 of the Code. The petitioners, in order to file appeal under Section 42 of the Code, filed an application to condone the delay in filing t...

Decree-Holder cannot be treated as a Financial Creditor for CIRP: NCLAT

Sh. Sushil Ansal Vs. Ashok Tripathi (NCLAT) - Sh. Sushil Ansal Vs. Ashok Tripathi (Delhi NCLAT) (i) Respondent Nos. 1 and 2 can no more claim to be allottees of a Real Estate Project after issuance of Recovery Certificate dated 10th August, 2019 by ‘UP RERA’ directing recovery of Rs.73,35,686.43/- due thereunder as arrears of land revenue b...

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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 ...

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

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....

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)....

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....

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 v...

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