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TM rights in Shakti Bhog

TM rights in ‘Shakti Bhog’ controversy amid insolvency proceedings

By Manisha Singh and Lisha Chauhan, LexOrbis
Amid the ongoing criminal proceedings alleging fraud and money laundering against officers of the Shakti Bhog companies and of creditor bank employees, insolvency proceedings are underway and have been for some time. A dispute...
Ministry wants full regulation review

New MCA policy standardises review of existing regulations

The Ministry of Corporate Affairs (MCA) has introduced a new policy that requires regulators to conduct pre-legislative consultations and a full review of existing rules and regulations. The policy aims to increase transparency, engagement with...
Real estate insolvency amendments

Call for comment on real estate insolvency amendments

In a bid to streamline real estate insolvency procedures, the government has unveiled a discussion paper about mitigating challenges encountered during corporate insolvency resolution processes (CIRPs). The discussion paper, released on 6 November 2023, delves...
IBC over Electricity Act

Insolvency and Bankruptcy Code prevails over Electricity Act

By Mani Gupta and Aman Choudhary, Sarthak Advocates & Solicitors
The Supreme Court (SC) recently held that the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), override those of the Electricity Act, 2003 (act), so far as they relate to the recovery of...
debt recovery from Prag by Argus and Standard Chartered

Argus acts for Standard Chartered to recover debts from Prag

Argus Partners has assisted Standard Chartered Bank to recover debts from a company in insolvency and liquidation proceedings before the National Company Law Tribunal (NCLT). In Standard Chartered Bank v Prag Distillery Private Limited (2017),...

Indian law takes off for international standards

By Sanjay Gupta and Namita Das, Dentons Link Legal
Whether Leonardo da Vinci in medieval Italy or John Secondari in 1965 US said, “Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have...
Law stands above commercial wisdom

Law stands above commercial wisdom

The Supreme Court’s 3 May judgment, in MK Rajagopalan v Dr Periasamy Palani Gounder & Anr, shows insolvency resolution plans must be approved by a committee of creditors before being put to an adjudicating authority. The...
yatraa settle insolvency dispute

Supreme Court allows Ezeego, Yatra to settle insolvency dispute

The Supreme Court on 2 May allowed Ezeego One Travel and Tours to withdraw its insolvency dispute against Yatra Online following a settlement where Yatra would pay Ezeego INR16 million (USD194,000). Earlier in March 2023,...
S&R advises on Indian Steel insolvency

S&R advises creditors’ committee on Indian Steel insolvency

S&R Associates advised the committee of creditors of Indian Steel Corporation’s corporate insolvency resolution and acquisition by AM Mining India. Partners Divyanshu Pandey and Sudip Mahapatra led the S&R team, with assistance from associates Apurv...

No automatic right to wages during insolvency resolution

By Aditya Vikram Dua and Parvathi Menon, SNG & Partners
There has been considerable discussion over whether salaries to employees should be treated as costs in the corporate insolvency resolution process (CIRP). If they are so regarded, those wages will assume priority over other...

Supreme Court decision clouds insolvency process

The Supreme Court’s judgment in the case of Vidarbha Industries Power v Axis Bank opened a Pandora’s box earlier this year when it unsettled a long established practice of the adjudicating authority admitting insolvency...
Solving-the-problem-of-interest-and-insolvency-L

Solving the problem of interest and insolvency

The component of interest has played a significant role in the admission of a company into insolvency where the required monetary threshold is partially unmet. The question that arises in these situations is whether...
NCLT’s ability to issue warrants strengthens insolvency resolution Sonam Gupta

NCLT’s ability to issue warrants strengthens insolvency resolution

By Sonam Gupta and Saumay Kapoor, Bharucha & Partners
The inability to resolve the insolvency of a corporate debtor does not merely stem from the fact that the entity is, in fact, distressed. In many cases, the resolution professional (RP) is unable to...
Cheques and balances

Cheques and balances

The number of criminal cases filed against cheque defaulters has overwhelmed India’s judicial system. One obvious solution is to decriminalise what is often a civil dispute, but lawyers aren’t convinced that’s the answer. George...
Insolvency resolution process has time limits

Insolvency resolution process has time limits

The Supreme Court, in the matter of Committee of Creditors of Amtek Auto Limited through Corporation Bank v Dinkar T Venkatsubramanian, observed that the entire resolution process had to be completed within the period stipulated...
India and Singapore relax over stressed assets Dhananjay Kumar Surbhi Pareek

India and Singapore relax over stressed assets

By Dhananjay Kumar and Surbhi Pareek, Cyril Amarchand Mangaldas
The Insolvency and Bankruptcy Code, 2016 (code) provides for the comprehensive rules-based resolution of insolvent corporate debtors, and has become a significant and successful means of stressed asset resolution. The success of the code...
GCCL Infra first to take pre-pack insolvency route

GCCL Infra first to take pre-pack insolvency route

GCCL Infrastructure & Projects (GCCL) has become the first to initiate the pre-packaged insolvency resolution process (PIRP), which was subsequently admitted by the Ahmedabad bench of the National Company Law Tribunal. To deal with the...
Delays and inconsistent treatment reduce RERA’s effectiveness, Amaresh Kumar Singh, HSA Advocates

Delays and inconsistent treatment reduce RERA’s effectiveness

By Amaresh Kumar Singh, HSA Advocates
RERA, or the Real Estate (Regulation and Development) Act, 2016 (act) and the Real Estate Regulatory Authority established under it, aimed to balance the interests of the various stakeholders in the real estate ecosystem,...
IBC and exclusions from committee of creditors 

IBC and exclusions from committee of creditors 

During the corporate insolvency resolution process (CIRP), the committee of creditors (COC) is the de facto board of the defaulting company. The COC is constituted after collating all the claims on the debtor, and...
NCLT proper forum for power purchase agreement insolvency, Abhishek Tripathi and Vedant Kumar, Sarthak Advocates & Solicitors

NCLT proper forum for power purchase agreement insolvency

By Abhishek Tripathi and Vedant Kumar, Sarthak Advocates & Solicitors
The Supreme Court has ruled that the National Company Law Tribunal (NCLT) has jurisdiction under the Insolvency and Bankruptcy Code, 2016 (IBC) in disputes involving Power Purchase Agreements (PPA). Gujarat Urja Vikas Nigam Limited...
IBC decides the fate of PPAs in insolvency, Abhirup Dasgupta and Bhawana Sharma, HSA Advocates

IBC decides the fate of PPAs in insolvency

By Abhirup Dasgupta and Bhawana Sharma, HSA Advocates
A power purchase agreement (PPA) is essential not only for the way a power project functions, but also for its very existence. There has, however, been significant uncertainty regarding the status of power generators...
Retrospective domestic measures and international investment protection, Puneeth Ganapathy, Lakshmikumaran & Sridharan

Retrospective domestic measures and international investment protection

By Puneeth Ganapathy, Lakshmikumaran & Sridharan
In two cases in 2020, Vodafone and Cairn Energy, India lost significant arbitral awards. These awards followed retrospective measures imposed on foreign investments, despite bilateral investment treaties (BIT) that protect foreign investors from unfair...
The committee of creditors and its commercial wisdom, Sonam Gupta, Sneha Jaisingh and Divyam Sharma, Bharucha & Partners

The committee of creditors and its commercial wisdom

By Sonam Gupta, Sneha Jaisingh and Divyam Sharma, Bharucha & Partners
The Insolvency and Bankruptcy Code, 2016 (code) was enacted to enable corporate insolvency resolution of financially stressed corporate debtors in a time bound manner, so as to maximise the value of their assets. The...
GST seizure and confiscation still causing problems, Surbhi Premi, Lakshmikumaran & Sridharan

GST seizure and confiscation still causing problems

By Surbhi Premi, Lakshmikumaran & Sridharan
Sections 129 and 130 of the Central Goods and Services Tax Act, 2017, have frequently raised problems. Section 129 provides for the detention, seizure and release of goods and conveyances in transit. Section 130...
Disadvantages faced by MSMEs in insolvency law, Gautam Khurana and Sanjeev Ahuja, India Law Offices

Impact of insolvency and bankruptcy code on MSMEs

By Gautam Khurana and Sanjeev Ahuja, India Law Offices
Micro, small and medium enterprises (MSME) contribute 8% to GDP, employ 106 million, that is 40% of the workforce, produce 45% of manufacturing output and 40% of total exports. While MSMEs play a vital...
Gambling laws- Interpretations and issues, L Badri Narayanan and Gopal Machiraju

Gambling laws: Interpretations and issues

By L Badri Narayanan and Gopal Machiraju, Lakshmikumaran & Sridharan
The Public Gambling Act, 1867 (Gambling Act), enacted prior to the constitution is the central law governing gambling in India. While under entry 34 of list II of schedule VII of the constitution, “betting...
Keeping the power on during insolvency, Abhishek Nath Tripathi and Vedant Kumar

Keeping the power on during insolvency

By Abhishek Nath Tripathi and Vedant Kumar, Sarthak Advocates & Solicitors
The National Company Law Appellate Tribunal (NCLAT) in Gujarat Urja Vikas Nigam Ltd (GUVNL) v Yes Bank Limited recently confirmed a National Company Law Tribunal (NCLT) decision restraining GUVNL from terminating the power purchase...
Satish Anand Sharma and Aniket Sawant, SNG & Partners, Liquidation

Assigning NRRAs and claims during liquidation

By Satish Anand Sharma and Aniket Sawant, SNG & Partners
While the Insolvency and Bankruptcy Code, 2016 (code), stipulates that the liquidation of a corporate debtor must be completed within one year from its commencement date, most liquidations continue beyond that period. Among other...
Anush Raajan,Swastika Chakravarti,Lakshmikumaran & Sridharan

Guarantors may be vulnerable to pandemic default risks

By Anush Raajan and Swastika Chakravarti, Lakshmikumaran & Sridharan
The government recognised the economic impact of covid-19 on businesses by enacting the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020. The ordinance, among other measures, inserted section 10A into the Insolvency and Bankruptcy Code,...
India Atma Nirbhar Bharat Scheme micro, small and medium enterprises

Lifeline for MSMES dragged down by pandemic

The pandemic and ensuing economic crisis have disproportionately impacted micro, small and medium enterprises (MSMEs). A large number of them face dire operational and financial constraints including a shortage of working capital, difficulty in...
Manoj Kumar and Shweta Bharti, Hammur balance Insolvency and Bankruptcy Code and Prevention of Money Laundering Act abi & Solomon

How to balance the IBC and the PMLA

By Manoj Kumar and Shweta Bharti, Hammurabi & Solomon
The Prevention of Money Laundering Act, 2002 (PMLA) seeks to prevent money laundering, to prosecute those committing money laundering and to recover and seize properties acquired by means of laundered money. However, the effective...
creditors

COVID-19, IBC suspension and operational creditors

By Shweta Bharti and Sukrit Kapoor,Hammurabi & Solomon
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 (ordinance), provides that no application to start a corporate insolvency resolution process (CIRP) in respect of a corporate debtor may be made for any default arising...
insolvency

How to implement pre-packaged insolvency

By Charanya Lakshmikumaran and Puneeth Ganapathy, Lakshmikumaran & Sridharan
Since last year, the government has been considering introducing pre-packaged insolvency schemes within the framework of the Insolvency and Bankruptcy Code, 2016 (IBC). With COVID-19 severely affecting the credit ecosystem, however, the right to...
Arbitration

Overlap between insolvency code and arbitration law

By Charanya Lakshmikumaran and Puneeth Ganapathy, Lakshmikumaran & Sridharan
Arbitral awards are treated as orders of a court and can be enforced as such, under the Civil Procedure Code, 1908 (CPC), subject to defences under the Arbitration and Conciliation Act, 1996. The Insolvency...
insolvency

Reverse insolvency to the rescue in housing projects

The National Company Law Appellate Tribunal (NCLAT) in Flat Buyers Association Winter Hills – 77, Gurgaon v Umang Realtech Pvt Ltd & Ors, brought by disaffected flat buyers of the Winter Hills project represented...
insolvency

NBFCs brought under purview of insolvency code

By Anisha Shroff and Sharanya Kundu, Samvad Partners
With the introduction of a codified law on insolvency and bankruptcy processes, restructuring jurisprudence entered a new era. While the new law focused on rehabilitating and restructuring stressed companies, restructuring processes involving financial service...
pmla

Harmonizing IBC and money laundering laws

By Ashwin Mathew and Gopal Machiraju, Lakshmikumaran & Sridharan
The interplay between the Insolvency and Bankruptcy Code, 2016 (IBC), and the Prevention of Money Laundering Act, 2002 (PMLA), has been the subject of much debate. In light of multiple conflicting decisions of various...
insolvency

Insolvency rules issued for financial services providers

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The presence of insolvency rules for non-financial companies in the form of the Insolvency and Bankruptcy Code, 2016 (IBC), and the lack of similar rules for financial companies led to a peculiar dichotomy. The...
claims

Resolution of disputed claims in insolvency process

By Charanya Lakshmikumaran and Gopal Machiraju, Lakshmikumaran & Sridharan
One of the key issues in the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (code), is the status and resolution of disputed claims. This has now been set to...
insolvency

Insolvency and related considerations for directors

By Shivaji Bhattacharya and Prateek Sharma, S&R Associates
Directors of a company in financial difficulty should be aware that their conduct may be subject to close scrutiny if the company falls into insolvency under the Insolvency and Bankruptcy Code, 2016, as amended....
proprietary

Sole proprietary concerns cannot file insolvency petitions

The National Company Law Tribunal (NCLT), Delhi in a recent judgment held that insolvency proceedings cannot be initiated by sole proprietary concern as the “sole proprietary concern” is not a person within the meaning...
Abhishek Dutta, Vineet Shrivastava and Aayushi Agarwal, Aureus Law Partners

Recent amendments to insolvency regulations

By Abhishek Dutta, Vineet Shrivastava and Aayushi Agarwal, Aureus Law Partners
With the introduction of The Insolvency and Bankruptcy Code (Amendment) Bill, 2019, on 24 July 2019 in the Rajya Sabha, the government has sought to amend the Insolvency & Bankruptcy Code, 2016. Earlier, the...
demergers

Choosing between business transfers and demergers

By Natashaa Shroff and Taranjeet Singh, Shardul Amarchand Mangaldas & Co
Until 2015, demergers were a popular form of divestment, where the business would be transferred under a court approved scheme as a going concern to the acquirer. Despite the fact that a typical scheme...
creditors

Creditors browbeat debtors with bankruptcy threat

By Supriya Majumdar, Vidhii Partners
“When secured creditors like the respondent are driven from pillar to post to recover what is legitimately due to them, in attempting to avail of more than one remedy at the same time, they...
Deccan Chronicle

Many hurdles in Deccan Chronicle insolvency

The legal team that advised on the Deccan Chronicle Holdings insolvency had to contend with multiple issues and challenges. The National Company Law Tribunal (NCLT) approved the resolution plan put forward by SREI Multiple...
India Business Law Journal

Historic mandate

Challenges abound as India’s new government takes charge Applause for the efficient running of the recent elections has been loud and long. With 900 million potential voters, 12 million polling workers and a million polling...
insolvency

Insolvency code: Judicial trends

By Abhishek Tripathi and Avantika Shukla, Sarthak Advocates & Solicitors
Abhishek Tripathi and Avantika Shukla look at role of adjudicating bodies in IBC's evolution The Insolvency and Bankruptcy Code, 2016 (IBC), is considered to be among the biggest achievements of the National Democratic Alliance (NDA)...
insolvency

Investing through insolvency code

By Sanjay Asher and Nikhil Kaul, Crawford Bayley & Co.
IBC has created opportunities for equity and debt investors alike, write Sanjay Asher and Nikhil Kaul The Insolvency and Bankruptcy Code, 2016 (code), notified by the government of India in May 2016, was in response...
labour laws

SC weighs in on interplay of labour laws and IBC

By Abhishek Dutta and Vineet Shrivastava, Aureus Law Partners
India as a welfare state has enacted various labour laws in order to ensure the protection and promotion of the social and economic status of workers and the elimination of their exploitation. Under the Indian...
Trade unions are operational creditors under insolvency code

Trade unions are operational creditors under insolvency code

The Supreme Court, in the recent case of JK Jute Mill Mazdoor Morcha v Juggilal Kamlapat Jute Mills Company Ltd through Its Director & Ors, held that a trade union can file as an operational...
Abhishek Dutta, Vineet Shrivastava and Manish Parmar, Aureus Law Partners

IBC: Law of guarantees and corporate insolvency process

By Abhishek Dutta, Vineet Shrivastava and Manish Parmar, Aureus Law Partners
The National Company Law Appellate Tribunal (NCLAT), in its recent ruling in the case of Vishnu Kumar Agarwal v Piramal Enterprises Ltd, while examining the validity of an application made under section 7 of...
Avinash-Kumar-Khard-HSA-Advocates - 副本

Rescue financing: Helping hand for entities in distress

By Avinash Kumar Khard, HSA Advocates
Super priority lending (also known as rescue financing) has been recognized in many jurisdictions. In India, it has now been expressly covered, to some extent, under the Insolvency and Bankruptcy Code, 2016 (IBC). It...
Karthik Somasundram and Shreya Gupta, Bharucha & Partners

Time-barred debts and the insolvency code

By Karthik Somasundram and Shreya Gupta, Bharucha & Partners
The Insolvency and Bankruptcy Code, 2016, has been construed as a complete code. Based on that construction and noting that the code contained no provision expressly making the Limitation Act applicable, and as the...
Abhishek-Dutta,-Vineet-V-Shrivastava-and-Manish-Parmar-Aureus-Law-Partners

Existence of dispute under insolvency code

By Abhishek Dutta, Vineet V Shrivastava and Manish Parmar, Aureus Law Partners
Under the Insolvency and Bankruptcy Code, 2016, the corporate insolvency resolution process (CIRP) can be initiated by an operational creditor if there is no dispute in relation to the default on the part of...
By-Aditya-Vikram-Dua-and-Aniket-Sawant-SNG-&-Partners - 副本

Revisiting loan documents in light of insolvency code

By Aditya Vikram Dua and Aniket Sawant, SNG & Partners
The interests of banks, financial institutions and other lenders and recovery of loans advanced by them is at the heart of the insolvency framework introduced by the Insolvency and Bankruptcy Code, 2016 (code). Although...

Cross-border insolvency report: A bird’s eye view

By Abhishek Dutta and Astha Srivastava, Aureus Law Partners
The Insolvency Law Committee issued a report on cross-border insolvency in October after considering public comments received on a draft framework issued by the Ministry of Corporate Affairs. The committee considered the UNCITRAL Model...

Managing and mitigating risks in distress transactions

By Dorothy Thomas and Teza Jose, Shardul Amarchand Mangaldas & Co
In the last two years, we have seen a significant rise in M&As, largely driven by big ticket consolidation across sectors as companies divested distressed assets in an effort to reduce debt. The Insolvency...

Unfair balance: Guarantees and the insolvency code

By Satish Anand Sharma and Devashree Limaye, SNG & Partners
The uncertainty on whether guarantees would attract moratorium under section 14 of the Insolvency and Bankruptcy Code, 2016 (code), has ended with the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (ordinance). This...
cross-border insolvency discussed by Abhishek Dutta

Cross-border insolvency requires a new framework

By Abhishek Dutta and the Knowledge Management Team, Aureus Law Partners
While a corporate entity may have creditors, debtors and assets in various countries, the Insolvency and Bankruptcy Code, 2016 (IBC), in its current avatar has no comprehensive legal framework on cross-border insolvency (CBI). The...
Insolvency

NCLAT clarifies ‘dispute’ under the insolvency code

The National Company Law Appellate Tribunal (NCLAT) recently held in an appeal against the Allahabad bench of the National Company Law Tribunal (NCLT) that any disputes within a corporate debtor company is not one...
Deepak-Sabharwal,-Deepak-Sabharwal-&-Associates

Changes aim to halt abuse of insolvency proceedings

By Deepak Sabharwal, Deepak Sabharwal & Associates
A rise in high-profile banking frauds led to the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018. The ordinance, effective from 6 June, presses for greater transparency in the corporate insolvency resolution process (CIRP), to...
Business Law Journal, letter to the editor

IBC’s position on supply of essential goods and services

Dear Editor, Section 14(2) of the Insolvency and Bankruptcy Code, 2016 (IBC), states that the “supply of essential goods or services to a corporate debtor shall not be suspended during the moratorium period”. The purpose...

Sound insolvency resolution key to infrastructure growth

By Divyanshu Pandey and Arpita Garg, J. Sagar Associates
Infrastructure developers in India have traditionally placed significant reliance on bank financing for infrastructure development. However, because of aggressive bidding, delayed payments causing strain on cash flows and lack of a secondary market for...

Jury is out on aspects of winding up and insolvency

By Varsha Banerjee, Dhir & Dhir Associates
Winding up proceedings were earlier initiated and conducted under the Companies Act, 1956. However, with the coming into force of the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016 (IBC), the process...

President promulgates amendment to insolvency and bankruptcy law

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017, dated 23 November 2017, was promulgated by President RN Kovind to amend the provisions relating to the insolvency resolution process contained in the Insolvency and Bankruptcy...

Demand notice filing procedure clarified for lawyers

The Supreme Court had the opportunity to settle the law on important questions arising under the Insolvency and Bankruptcy Code, 2016 (IBC), which have impaired operational creditors from enforcing their rights under the IBC. In...

Insolvency ordinance: A boon or a bane?

By Amit Ronald Charan and Satish Anand Sharma, SNG & Partners
The Insolvency and Bankruptcy Code (Amendment) Act, 2017, is based on an ordinance promulgated by the president on 23 November. It is intended to improve the credibility of the corporate insolvency resolution process (CIRP)...

Rule change urged to allow insolvency proceedings halt

By Deepak Biswas and Sneha Jaisingh, Bharucha & Partners
The Insolvency and Bankruptcy Code, 2016, primarily aims to achieve reorganization and insolvency resolution in a time-bound manner for maximizing the value of assets of insolvents. The National Company Law Tribunal (NCLT), the adjudicating...

Circular on anomaly shows goals of code take priority

By Sachin Gupta, Dhir & Dhir Associates
The Insolvency and Bankruptcy Code, 2016 (IBC), implements a “creditor-in-possession” regime that vests decision making powers of the insolvent company with a “committee of creditors” (CoC), astutely recognizing that financial creditors will be better...

Information utility: A vital cog in the code

By Rahul Sud and Satish Anand Sharma, SNG & Partners
The four pillars envisaged under the Insolvency and Bankruptcy Code, 2016, are now in place: A regulator, the Insolvency and Bankruptcy Board of India (IBBI); Adjudicating authorities (AA), the National Company Law Tribunal (NCLT)...

Business in India and insolvency laws

By Manoj Kumar and Shweta Bharti, Hammurabi & Solomon
The Insolvency and Bankruptcy Code, 2016 (IBC), has come into effect in India at a time when overseas companies are seeing increased India business as well as an increasing number of Indian businesses going...
Insolvency and Bankruptcy Code: Two sides of the coin. Column by Alok Dhir, Dhir & Dhir Associates

Insolvency and Bankruptcy Code: Two sides of the coin

By Alok Dhir, Dhir & Dhir Associates
The Insolvency and Bankruptcy Code, 2016 (IBC), is a watershed in the history of India’s banking credit culture. Replacing a plethora of legislation it provides for a single-window, time-bound process designed to revive a...

Real estate test for the new insolvency code

By Rahul Sud and Satish Anand Sharma, SNG & Partners
The recently introduced Insolvency and Bankruptcy Code, 2016 (IBC), has been put to a real test with the admission of corporate insolvency resolution proceedings (CIRP) against Jaypee Infratech for defaulting on a loan from...
Vivek Vashi and Ttkarsh Srivastava, Bharucha Partners

‘Dispute’ meaning settled for corporate insolvency cases

By Vivek Vashi and Utkarsh Srivastava, Bharucha & Partners
The National Company Law Appellate Tribunal (NCLAT), in Kirusa Software Pvt Ltd v Mobilox Innovations Pvt Ltd, has finally decided the scope of the term “dispute” under section 9 of the Insolvency and Bankruptcy...
Sawant Singh and Aditya Bhargava at Mumbai office of Phoenix Legal

Is the budget a bellwether or a Cassandra for reforms?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
With the last throes of the demonetization saga closely nipping at the government’s heels, much theatre and fanfare accompanied the introduction of its 2017-18 budget. Tension was heightened as the union budget was merged...
Amit Aggarwal and Rahul Sud Dishonour of post-dated cheques taken as security

India’s Bankruptcy Code: Lessons from Singapore

By Amit Aggarwal and Rahul Sud, SNG & Partners
The personal and corporate insolvency regimes under India’s Insolvency and Bankruptcy Code, 2015, are largely underpinned by UK statutes and common law. Singapore also follows the UK position and thus it may be useful...
Bankruptcy Code decoded

Bankruptcy code decoded

The rewriting of India’s bankruptcy laws has prompted the publication of at least two books. The first is a section-by-section commentary on the Insolvency and Bankrupty Code, 2016, by Pranav Khatavkar, an independent lawyer...
provisions-notified-under-bankruptcy-code

Provisions notified under Bankruptcy Code

On 24 August, the government notified certain provisions of the Insolvency and Bankruptcy Code, 2016. These provisions came into effect on 19 August. The notified provisions relate to the following: Definition of “Insolvency and...
siddharth-srivastava-and-kanika-kadam-link-legal-india-law-services

Bankruptcy Code’s impact on ease of doing business

By Siddharth Srivastava and Kanika Kadam, Link Legal India Law Services
The World Bank’s Doing Business Report, 2016, ranks India 130 among 189 economies on “ease of doing business”. One of the sub-indexes on which the ranking depends is resolving insolvency. It is interesting to...

Parliament passes insolvency and bankruptcy code

The Insolvency and Bankruptcy Code, 2015, provides a consolidated statutory framework for the resolution of bankruptcy and insolvency proceedings. This framework is a far cry from the multiple legislative and judicial forums that creditors...
By Sawant Singh and Aditya Bhargava, Phoenix Legal

Budget 2016: Good times ahead for bond markets?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
While the Indian corporate bond market has become more active in the private placement segment in the past few years, the market’s overall development has been ad hoc. This situation seems set for a...
Debanshu Mukherjee

Decoding the bankruptcy code

Proposed changes to the insolvency regime will boost credit markets and entrepreneurship, argues Debanshu Mukherjee  The Insolvency and Bankruptcy Code, 2015, which was introduced in parliament in December 2015, proposes large-scale reforms to India’s corporate insolvency...
By Babu Sivaprakasam, Deep Roy and Megha Agarwal, Economic Laws Practice - 副本

Conflict between company law and the SARFAESI Act

By Babu Sivaprakasam, Deep Roy and Megha Agarwal, Economic Laws Practice
The Indian legal framework for recovery of debt and for dealing with companies in distress is spread across various statutes. Creditors can seek recourse under the provisions of statutes such as the Companies Act,...
assets discovered after CIRPvideo

Only creditors distribute assets discovered after CIRP

By Sonam Gupta and Divyam Sharma, Bharucha & Partners
In Allahabad Bank v SPS Steels Rolling Mills Limited, the National Company Law Tribunal (NCLT) considered how the assets of a corporate debtor discovered after the approval of a resolution plan should be distributed. SPS,...
dissenting financial creditors

Securing the rights of dissenting financial creditors

By Nishtha Arora and Srishti Bansal, SNG & Partners
In the recent case of DBS Bank Limited Singapore v Ruchi Soya Industries Limited and Anr, the Supreme Court held that in the insolvency proceedings of a corporate debtor, the dissenting financial creditors were...
ACIL Limited Insolvency Case

Reasoning at the heart of decision

The Supreme Court recently held, in Ramkrishna Forgings Limited v Ravindra Loonkar, Resolution Professional of ACIL Limited and Anr, that when the National Company Law Tribunal (NCLT) invoked section 31(2) of the Insolvency and...
video

Ensuring liquidation preference to protect investor rights

By Parag Bhide and Mitali Kshatriya, Bharucha & Partners
Investment agreements generally include provisions for liquidation preference. Investors have the right to receive a specific amount before other shareholders on the occurrence of pre-defined liquidation events such as acquisitions, the merger and sale...

Does private credit need stricter regulation?

By Aditya Vikram Dua and Aniket Sawant, SNG & Partners
Private credit has become an attractive source of funding for issuers, compared to traditional sources. This is because the Reserve Bank of India (RBI) has stricter regulations and has tightened lending standards for banks...

Fresh directions

National Company Law Tribunal Mumbai counsel Mansi Kaku explores crucial changes that the insolvency board seeks to better align the corporate insolvency resolution process and overcome significant challenges It is often said that, in...
trademarks reversed NCLT Kolkota

Assignment of trademarks reversed by NCLT’s Kolkata bench

By Manisha Singh and Anvita Sharma, LexOrbis
The Trade Marks Act, 1999 (act) protects trade marks and safeguards the rights of proprietors, who invest time and money building a reputation. The aim is to prevent the fraudulent use and registration of...
video

The clouds of Rainbow Papers roll away

By Karthik Somasundram, Bharucha & Partners
The Supreme Court’s judgment in State Tax Officer v Rainbow Papers Limited was widely criticised for disregarding the waterfall mechanism of the Insolvency and Bankruptcy Code, 2016 (IBC). This prioritises the claims of workmen, secured creditors,...
Legal amendments face fairness test

High court rules amendments face twin test

A dispute over car parks has led to a high court ruling that any documents added to civil proceedings must meet a twin test of fairness under amendments to the Code of Civil Procedure. The...
smoother aircraft runway under new billvideo

Aircraft lessors hope for a smoother runway under new bill

By Sudeshna Guha Roy and Jyotiranjan Nayak, Bharucha & Partners
India is the third largest aviation market globally, with 80 per cent of its commercial fleet leased, compared to the global average of 53 per cent. The Convention on International Interests in Mobile Equipment...

Hope for financially stressed subsidiaries of overseas companies

By Gautam Khurana and Bharat Khurana, India Law Offices
Overseas companies entering the Indian market through the wholly owned subsidiary route do so with hope and expectation. While the majority of ventures have worked out well, there have been instances where the subsidiary...
NCLT applications under IBC

Vidarbha: The ratio that wasn’t

By Sonam Gupta and Arunima Nair, Bharucha & Partners
In M Suresh Kumar Reddy v Canara Bank and Ors, the Supreme Court clarified that its observations in Vidarbha Industries Power Limited v Axis Bank Limited were restricted to the particular facts of that case. Therefore, except...
India oasis of hope

India ‘oasis of hope’ for growth: IBA conference panellists in Mumbai

India is on the cusp of driving global growth and considered the last oasis of hope amid a worldwide slowdown, say panellists at the biannual International Bar Association (IBA) M&A conference in the financial...
Former-directors-stay-on-the-hook-despite-successful-CIRP-Lvideo

Former directors stay on the hook despite successful CIRP

By Karthik Somasundram and Alabh Lal, Bharucha & Partners
Under section 138 of the Negotiable Instruments Act, 1881 (NI Act), if a dishonoured cheque is not subsequently met or paid, the issuer of the cheque will have committed an offence. Where the defaulter...
Real estate M&Avideo

M&A activity shows real estate resilience

By Ashoo Gupta, Shardul Amarchand Mangaldas & Co
Mergers and acquisitions (M&A) in the real estate sector should be set against the overall M&A landscape. Overall numbers show a slowdown in M&A deals during the first quarter of 2023, with global market...

Shortfall undertaking is financial debt under IBC

By Aditya Vikram Dua and Parvathi Menon, SNG & Partners
In lending transactions, standard practice is to obtain shortfall undertakings, that is meeting any shortfall in the repayment of the underlying facility from holding companies of the borrower or financially strong companies in the...

Deals of the year 2022

India Business Law Journal reveals the standout deals and disputes of 2022 and the law firms that showed their worth in successfully concluding them Despite concerns of a resurgence in covid-19 cases at the beginning...
IBC valuationsvideo

IBC valuations may spike with proceeds of avoidable transactions

By Karthik Somasundram and Khyati Mehrotra, Bharucha & Partners
Insolvency and Bankruptcy Board of India (IBBI) data shows that, as of September 2022, creditors had realised INR2.43 trillion (USD29.97 billion) of the INR7.19 trillion claimed through the corporate insolvency resolution process (CIRP) under...
insolvency service providers

Enforcing integrity

As the insolvency and bankruptcy board turns up the heat on insolvency practitioners, Karuna Sharma and Atul Malhotra examine the tools of inspection and investigation at their disposal to ensure compliance with the code T...
Rainbow judgment on IBC

Rainbow Papers judgment: Clouds loom over IBC

By Soumitra Majumdar and Utkarsh Bandhu, JSA
By recognising the state government as a secured creditor, the Rainbow Papers judgment exposes the Insolvency and Bankruptcy Code to incongruous uncertainty Promulgation of the Insolvency and Bankruptcy Code, 2016 (IBC) brought much cheer to...
IBC fairnessvideo

Speed important in IBC but fairness more so

By Sneha Jaisingh and Amogh Joshi, Bharucha & Partners
Recently, in Rathi Graphics Technologies Limited v Rajkumar Rathi & Ors, the National Company Law Tribunal (NCLT), relying on Supreme Court decisions and the report of the Bankruptcy Law Reform Committee, held that committees...
RBI released new ARCs regulatory framework

ARCs can be resolution applicant

The Reserve Bank of India (RBI) released a new regulatory framework for Asset Reconstruction Companies (ARCs) on 11 October allowing them to be resolution applicant (RA) entities under the Insolvency and Bankruptcy Code, 2016...
Missed opportunity on new framework ARCs

New framework for ARCs perhaps a missed opportunity

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The April 2021 statement on developmental and regulatory policies of the Reserve Bank of India (RBI) noted the growth of asset reconstruction companies (ARCs), mentioning that “their potential for resolving stressed assets is yet...
India supreme court on financial creditorsvideo

Supreme Court says financial creditors not so supreme

By Sudeshna Guha Roy and Elisha Vaswani, Bharucha & Partners
In the recent case of Vidarbha Industries Power Limited v Axis Bank Limited, the Supreme Court held that the National Company Law Tribunal (NCLT), as the adjudicating authority, has discretion to admit or reject...
India supreme court giving tax authorities secured creditors

Making states secured creditors weakens IBC

By Saroj Pandey and Rachit Munjal, SNG & Partners
The recent Supreme Court (SC) case of State Tax Officer (1) v Rainbow Papers Limited held that section 48 of the Gujarat Value Added Tax Act, 2003 (GVAT), a notwithstanding provision imposing a statutory...
NOIDA dues are not a financial debtvideo

NOIDA dues are not a financial debt

By Shreya Sircar and Sneha Sanyal, Bharucha & Partners
The Supreme Court in NOIDA v Anand Sonbhadra recently considered whether sums owed by real estate developers to New Okhla Industrial Development Authority (NOIDA) under long-term leases could be classified as financial debts and...
RBI increases responsibilities of loan transfer parties, Aditya Vikram Dua, Parvathi Menon

RBI increases responsibilities of loan transfer parties

By Aditya Vikram Dua and Parvathi Menon, SNG & Partners
The Reserve Bank of India (RBI) issued the Transfer of Loan Exposures Directions, 2021 (directions) in September 2021, which prescribe a comprehensive and robust framework to facilitate the sale, transfer and acquisition of loan...
Shaky Ground

Shaky ground

A spate of defaults at several prominent real estate companies has left creditors and homeowners on shaky ground, with several challenges awaiting them at the insolvency court, writes Vineeta Bansal When Supertech, one of the...
Decree holders ‘not same as financial creditors’

Decree holders ‘not same as financial creditors’

The Supreme Court has upheld a decision of the Tripura High Court by refusing to interfere with its judgment that decree holders cannot be treated the same as financial creditors under the Insolvency and...
IBBI adds 1,060 insolvencies in two years

IBBI adds 1,060 insolvencies in two years

The Insolvency and Bankruptcy Board of India (IBBI) has admitted 538 and 522 cases, respectively during the periods for 2020-21 and 2021-22 (up to the quarter ending 31 December 2021) into the corporate insolvency...
Withdrawal of CIRP may save corporate debtor Shreya Sircar

Withdrawal of CIRP may save corporate debtor

By Shreya Sircar and Sanjukta Roy, Bharucha & Partners
The object of the Insolvency and Bankruptcy Code, 2016 (IBC) is to maximise the asset value of the corporate debtor while protecting and balancing the interests of all stakeholders. The IBC discourages individual actions...
Special-situation-L

SEBI introduces special situation funds

The Securities and Exchanges Board of India (SEBI) has introduced a new sub-category under alternate investment funds to recognise special situation funds (SSFs). On 24 January 2022, the securities regulator notified the amended SEBI (Alternative...
IBC offers attractive options for M&A deals Gautam Khurana

IBC offers attractive options for M&A deals

By Gautam Khurana, India Law Offices
The Insolvency and Bankruptcy Code, 2016 (IBC) has gradually evolved but, following a number of amendments, now offers a value route for M&A transactions. Corporate insolvency prior to 2016 was a disordered process but...
NBFCs-are-now-subject-to-prompt-corrective-action-L

NBFCs are now subject to prompt corrective action

By Sawant Singh and Aditya Bhargava, Phoenix Legal
In October 2021, the Reserve Bank of India (RBI) released a scale-based regulatory framework for non-banking financial companies (NBFC) to tackle systemic risks posed by the sector. Continuing its steady march forward in aligning...
Sonam Gupta Partner Bharucha & Partners

SC overreach undermines the purpose of IBC

By Sonam Gupta, Bharucha & Partners
The Supreme Court in Dena Bank (now Bank of Baroda) v C Shivakumar Reddy held that a money decree or adjudication of a claim creates a fresh cause of action for a financial creditor...
Satish Anand Sharma and Aniket Sawant, SNG & Partners

Bad bank to be the new banking saviour

By Satish Anand Sharma and Aniket Sawant, SNG & Partners
Financial institutions have been dealing with the non-performing asset (NPA) crisis for many years. The spread of covid-19 has exacerbated adverse cash flow for many businesses, resulting in the non-repayment of loan and interest...
IBC

Unlocking new pastures for distressed investment in India

By Shardul Shroff and Shreya Prakash, Shardul Amarchand Mangaldas & Co
In the past half-decade, India has seen a great deal of investment and M&A activity in stressed assets. Large parts of this activity have focused on acquiring distressed companies through the Insolvency and Bankruptcy...

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