Ordinance barring loan defaulters from bidding for stressed assets promulgated after President’s nod
7 years, 4 months ago

Ordinance barring loan defaulters from bidding for stressed assets promulgated after President’s nod

India TV News  

President Ram Nath Kovind has given his approval to an ordinance to amend the Insolvency and Bankruptcy Code, 2016, the government informed, adding that the Centre has promulgated the ordinance to bring the changes into effect. The changes in Section 5 of the Code, which define "Resolution Plan" and "Resolution Applicant", are amended to provide clarity. Section 25 of the Code is amended to enable the Resolution Professional, with the approval of the Committee of Creditors, to specify eligibility conditions while inviting Resolution Plans from prospective Resolution Applicants keeping in view the scale and complexity of operations of business of the Corporate Debtor to avoid frivolous applicants. Besides, it will also include perosns who are Promoters or in management of control of the Resolution Applicant, or will be Promoters or in management of control of Corporate Debtor during the implementation of the Resolution Plan, the holding company, subsidiary company, associate company or related party of the above referred persons. It has also been specifically provided that CoC shall reject a Resolution Plan, which is submitted before the commencement of the Ordinance but is yet to be approved, and where the Resolution Applicant is not eligible as per the new Section 29A.

Insolvency Resolution Assets Applicant Resolution Plan Plan Code Ordinance Coc Section 29A Ibc Ibbi Stressed Stressed Assets  promulgated  defaulters  code  corporate  assets  plan  nod  presidents  process  barring  bidding  resolution  insolvency  promoters  loan  stressed  ordinance  applicant

History of this topic

IBC | For Resolution Plan Involving Combination, Prior Approval Of Competition Commission Mandatory Before CoC Examination : Supreme Court
Trending News
1 month, 3 weeks ago

IBC | For Resolution Plan Involving Combination, Prior Approval Of Competition Commission Mandatory Before CoC Examination : Supreme Court

Live Law  

The Supreme Court on January 29, by 2:1 majority, observed that a resolution plan under the Insolvency and Bankruptcy Code, containing a proposed combination, should only be placed before the Committee of Creditors, after it has been approved by the Competition Commission of India. This proviso talks about the approval of the resolution plan and its proviso reads as: “Provided …

Amendments Needed In IBC To Provide NOC To Successful Resolution Applicants When Plan Over Attached Property Is Approved: Sr Adv Mukul Rohatgi
2 months ago

Amendments Needed In IBC To Provide NOC To Successful Resolution Applicants When Plan Over Attached Property Is Approved: Sr Adv Mukul Rohatgi

Live Law  

On Friday, 17th January 2025, a roundtable discussion titled "Understanding the Synergy Between PMLA and IBC" was held at India International Centre, New Delhi by the Insolvency Law Academy in collaboration with NM Law Chambers. He said that although the ED must lift its attachment over the properties of the corporate debtor once a resolution plan is approved by the …

Unsuccessful Resolution Applicant Has No Locus To Challenge Approval Of Resolution Plan By CoC: NCLT Kolkata
2 months, 2 weeks ago

Unsuccessful Resolution Applicant Has No Locus To Challenge Approval Of Resolution Plan By CoC: NCLT Kolkata

Live Law  

The NCLT Kolkata bench of Justice Bidisha Banerjee and D. Arvind has held that Unsuccessful Resolution Applicant has no locus standi to challenge the approval of Resolution Plan by the Committee of Creditors. The default stemmed from a Loan Agreement executed on July 26, 2019 between SREI Equipment and the corporate debtor under which a loan facility of Rs, 300 …

Approval Of Resolution Plan By CoC Cannot Be Interfered With Unless Section 30(2) Of Code Is Breached: NCLAT
3 months, 2 weeks ago

Approval Of Resolution Plan By CoC Cannot Be Interfered With Unless Section 30(2) Of Code Is Breached: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Ashok Bhushan and Barun Mitra has held that approval of Resolution Plan by the Committee Of Creditors cannot be interfered with unless it is violative of section 30 of the Code. It further argued that SRA has not implemented the Resolution Plan and matter is pending consideration before the Adjudicating Authority therefore this …

Extinguishment Of Promoters' Personal Guarantees In Resolution Plan Is Valid If Plan Complies With IBC Provisions: NCLT Mumbai
4 months, 2 weeks ago

Extinguishment Of Promoters' Personal Guarantees In Resolution Plan Is Valid If Plan Complies With IBC Provisions: NCLT Mumbai

Live Law  

The NCLT Mumbai Bench of Justices Anil Raj Chellan and Kuldip Kumar Kareer affirmed that the clause in the resolution plan for extinguishing the personal guarantees of promoters furnished in favour of all financial creditors or the commercial decision of the CoC to approve such release of personal guarantees, including guarantees executed in favour of dissenting financial creditors, will not …

Approved Resolution Plan Can Be Amended To Ensure Statutory Compliance U/S 31 Of IBC: NCLT Kolkata
4 months, 2 weeks ago

Approved Resolution Plan Can Be Amended To Ensure Statutory Compliance U/S 31 Of IBC: NCLT Kolkata

Live Law  

The NCLT Kolkata Bench of Justices D. Arvind and Bidisha Banerjee held that the approved resolution plan can be amended to ensure that it complies with the statutory provisions under section 31 of the IBC. In this case, an application seeking amendment to the approved resolution plan was filed by the SRA to increase the public shareholdings to 5% as …

NCLAT Rejects Resolution Plan of Bishwanath Traders & Investment Ltd. under Section 29A of IBC
4 months, 3 weeks ago

NCLAT Rejects Resolution Plan of Bishwanath Traders & Investment Ltd. under Section 29A of IBC

Live Law  

The NCLAT New Delhi Bench of Justices Ashok Bhushan and Barun Mitra held that the eligibility/ineligibility of Successful Resolution Applicant under section 29A of the Insolvency and Bankruptcy Code (IBC) has to be seen on the date of submission of Resolution Plan. The tribunal found that when the Corporate Debtor was registered as MSME on 22.05.2022, the benefit of Section …

IBC Revolutionizes Corporate Insolvency
11 months, 3 weeks ago

IBC Revolutionizes Corporate Insolvency

Deccan Chronicle  

Exactly, 10 years ago, in the run-up to the 2014 Lok Sabha elections, Narendra Modi, who was the BJP’s prime ministerial candidate, had said that traders have more risk-taking capacity than soldiers. Several hundreds of companies and lakhs of employees have benefitted from a relatively easy resolution process devised by IBC.After seven years of IBC’s journey, corporate litigation and disputes …

NCLT Ahmedabad Rejects Resolution Plan For Failing To Address Issues Of Cash Flow, Value Of Assets And Statutory Dues
1 year, 4 months ago

NCLT Ahmedabad Rejects Resolution Plan For Failing To Address Issues Of Cash Flow, Value Of Assets And Statutory Dues

Live Law  

The National Company Law Tribunal, Ahmedabad Bench, comprising of Mrs. Chitra Hankare and Dr. Velamur G Venkata Chalapathy, has declined to approve a resolution plan which failed to address the issue of cash flows, value of assets, statutory dues and proposed payment of merely Rs. “The Resolution Plan does not address the cash flows and value of the Assets enumerated …

Resolution Professional Responsible For Conducting Section 29A Due Diligence; Can Seek Information, Documents Or Clarification From RA: NCLT Mumbai
1 year, 7 months ago

Resolution Professional Responsible For Conducting Section 29A Due Diligence; Can Seek Information, Documents Or Clarification From RA: NCLT Mumbai

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kishore Vemulapalli and Shri Anu Jagmohan Singh, while adjudicating a petition filed in M/s Blue Frog Media Pvt. Ltd., has held that a Resolution Professional is responsible to conduct due diligence relating to Section 29A of IBC, to identify ineligibility of resolution applicant, if any. The Resolution Professional should seek …

IBC Amendment Prescribing Minimum Number Of Homebuyers Applicable To All Company Petitions Pending For Final Admission: NCLT Mumbai
1 year, 10 months ago

IBC Amendment Prescribing Minimum Number Of Homebuyers Applicable To All Company Petitions Pending For Final Admission: NCLT Mumbai

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri H.V. Anu Jagmohan Singh, while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 in S. Ramasubramonian vs Shree Sukhakarta Developers Private Limited has held that the IBC amendment prescribing the minimum number of homebuyers for initiation Corporate Insolvency Resolution Process under Section 7 of IBC, 2016 is …

Applicability Of Section 10A, IBC To Part Default During Suspension Period ;An Analysis
1 year, 11 months ago

Applicability Of Section 10A, IBC To Part Default During Suspension Period ;An Analysis

Live Law  

On 5 June, 2020, the Government of India introduced Section 10A to the Insolvency and Bankruptcy Code, 2016 by the way of an ordinance which barred filing of any application for initiation of CIRP for default occuring during a certain period. Section 10A, IBC And Court’s Interpretation Section 10A of IBC, 2016 states that no application for the initiation of …

IBC- Once Resolution Plan Is Approved, No Modifications Are Permissible : Supreme Court
2 years ago

IBC- Once Resolution Plan Is Approved, No Modifications Are Permissible : Supreme Court

Live Law  

The Supreme Court has held that the declaration made by the NCLT to the effect that the trademarks “Deccan Chronicle” and “Andhra Bhoomi”, which originally belonged to Deccan Chronicle Holdings Ltd., continues to be under the ownership of DCHL post the approval of resolution plan, would amount to impermissible modification of resolution plan as the same was silent on this …

IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court
2 years ago

IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court

Live Law  

The Supreme Court has held that a resolution professional is entitled to take control of the rights of a corporate debtor in assets which are licensed to third parties. The RP defended the NCLT/NCLAT orders by contending that the impugned orders have not hampered the rights of Victory and what is sought to be included in the Information Memorandum are …

NCLAT Delhi Upholds Remitting Of Resolution Plan Back To COC For Compliance Of Sec 30(2) IBC
2 years ago

NCLAT Delhi Upholds Remitting Of Resolution Plan Back To COC For Compliance Of Sec 30(2) IBC

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan and Ms. Shreesha Merla, while adjudicating an appeal filed in Noble Marine Metals Co WLL v Kotak Mahindra Bank Limited & Ors., has upheld the order of Adjudicating Authority whereby a Resolution Plan was remitted back to the Committee of Creditors for making changes, only to the …

When COC Approves A Resolution Plan, It Is Presumed To Be Viable And Feasible: NCLAT Delhi
2 years, 2 months ago

When COC Approves A Resolution Plan, It Is Presumed To Be Viable And Feasible: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan, Shri Kanthi Narahari and Shri Barun Mitra, while adjudicating an appeal filed in Rajesh Kumar & Ors. v Rabindra Kumar Mintri & Anr., has held that when the Committee of Creditors approves a Resolution Plan in its commercial wisdom, it is presumed that the Resolution Plan is …

AA Shall Either Approve Or Reject The Resolution Plan, No Power To Modify It: NCLAT Delhi
2 years, 3 months ago

AA Shall Either Approve Or Reject The Resolution Plan, No Power To Modify It: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Rakesh Kumar and Dr. Ashok Kumar Mishra, while adjudicating an appeal filed in Mathuraprasad C Pandey & Ors. v Partiv Parikh & Anr., has held that when a Resolution Plan is presented before the Adjudicating Authority for approval, it is clear mandate of legislation to either approve or to …

Related Party Of Financial Creditor Not Barred U/S 29A To Submit A Resolution Plan: NCLT Cuttack
2 years, 5 months ago

Related Party Of Financial Creditor Not Barred U/S 29A To Submit A Resolution Plan: NCLT Cuttack

Live Law  

The National Company Law Tribunal, Cuttack Bench, comprising of Shri P. Mohan Raj, while adjudicating an application filed in Trimex Industries Pvt. Sathavahana Ispat Ltd. & Ors., has held that the IBC does not bar a related party of the Financial Creditor from submitting a resolution plan for the Corporate Debtor. Jindal Saw Ltd. had submitted a resolution plan for …

RP And COC Can Request Resolution Plan For A Second Time; IBBI Notification
2 years, 6 months ago

RP And COC Can Request Resolution Plan For A Second Time; IBBI Notification

Live Law  

The Insolvency and Bankruptcy Board of India has amended the IBBI Regulations, 2016 for a fourth time and has notified the amendment on 16.09.2022. Changes Brought By The Amendment With the objective to maximise value in resolution, the amendment enables the resolution professional and the Committee of creditors to issue request for resolution plan a second time for sale of …

Resolution Plan Which Ignores Statutory Dues Payable To State Government/Legal Authority Liable To Be Rejected : Supreme Court
2 years, 6 months ago

Resolution Plan Which Ignores Statutory Dues Payable To State Government/Legal Authority Liable To Be Rejected : Supreme Court

Live Law  

The Supreme Court held that a Resolution Plan which ignores the statutory demands payable to any State Government or a legal authority, altogether, is liable to be rejected.The court also held that the Section 48 of the Gujarat Value Added Tax Act is not contrary to or inconsistent with Section 53 or any other provisions of the IBC. Mr. Arnav …

Resolution Professional Cannot Decide The Eligibility Under Section 29A Of The Insolvency And Bankruptcy Code, 2016: NCLAT Delhi
2 years, 11 months ago

Resolution Professional Cannot Decide The Eligibility Under Section 29A Of The Insolvency And Bankruptcy Code, 2016: NCLAT Delhi

Live Law  

A three-judge bench of the National Company Law Appellate Tribunal comprising of Justice Ashok Bhushan, Dr. Alok Srivastava and Ms. Shreesha Merla held that the Resolution Professional is not required to take a decision regarding the ineligibility of the Resolution Applicant under Section 29A of the Insolvency & Bankruptcy Code, 2016. Resolution Professional opposed the same by stating that the …

Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT
3 years, 1 month ago

Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT

Live Law  

The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh and Ms. Shreesha Merla in Noida Special Economic Zone Authority v. Mr. Manish Agarwal refused to set aside the order passed by the Adjudicating Authority, which approved the Resolution Plan, reiterating that the commercial wisdom of the CoC with respect to viability and financial decision taken while evaluating the Resolution …

Guarantor Whose Guarantee Stands Invoked By Any Creditor Barred Under Section 29A(h) IBC: Supreme Court
3 years, 2 months ago

Guarantor Whose Guarantee Stands Invoked By Any Creditor Barred Under Section 29A(h) IBC: Supreme Court

Live Law  

The Supreme Court has delivered an important judgment interpreting the scope of Section 29A of the Insolvency and Bankruptcy Code. Section 29A IBC specifies the categories of persons who are not eligible to be resolution applicants.Sub-section of Section 29A refers to persons whose guarantees stand invoked by the creditors of the corporate debtor. Adopting a "purposive interpretation" of the provision, …

The Insolvency And Bankruptcy Code – Respite To MSME
3 years, 5 months ago

The Insolvency And Bankruptcy Code – Respite To MSME

Live Law  

The Insolvency and Bankruptcy Code 2016 has now been maturing over the period of time with various precedents and clarifications being issued from time to time by the adjudicating authority. A new Chapter III-A in the Insolvency and Bankruptcy Code, 2016 was also introduced earlier, through an Ordinance this year for a pre-packaged insolvency resolution process which can only be …

SC Upholds Changes in IBC to Initiate Case Against Debtor Firms
4 years, 2 months ago

SC Upholds Changes in IBC to Initiate Case Against Debtor Firms

News 18  

In a significant verdict, the Supreme Court Tuesday upheld amendments made by Parliament in the Insolvency and Bankruptcy Code which made changes including that either one hundred home buyers or ten per cent of allottees of a housing project will be needed to initiate insolvency resolution process against defaulting real estate firms instead of earlier provision which permitted even a …

Loan Moratorium Case- No Requirement Of Specific Resolution Plan For Borrowers For Invocation Of Resolution Framework: RBI Tells Supreme Court
4 years, 3 months ago

Loan Moratorium Case- No Requirement Of Specific Resolution Plan For Borrowers For Invocation Of Resolution Framework: RBI Tells Supreme Court

Live Law  

Reserve Bank of India has informed the Top Court that borrowers opting for resolution of COVID-related stressed loans shall not be required to submit any specific plans. RBI has stated that borrowers may invoke resolution framework by submitting a request to the lending institutions.The Resolution Framework does not require any resolution plan in any form to be submitted to the. …

IBC Amendment Ordinance – Synthesis or Antithesis?
4 years, 9 months ago

IBC Amendment Ordinance – Synthesis or Antithesis?

Live Law  

In view of the COVID-19 pandemic having impacted businesses, financial markets and the economy, thereby creating uncertainty and stress for businesses for reasons beyond their control, the President of India promulgated today, 5th June, 2020 an Ordinance to further amend the Insolvency and Bankruptcy Code, 2016. Notwithstanding anything contained in sections 7,9 and 10, no application for initiation of corporate …

IBC Amendment Ordinance 2020 : Ambiguities Leave More Questions Than Answers
4 years, 9 months ago

IBC Amendment Ordinance 2020 : Ambiguities Leave More Questions Than Answers

Live Law  

In view of the COVID-19 pandemic having impacted businesses, financial markets and the economy, thereby creating uncertainty and stress for businesses for reasons beyond their control, the President of India promulgated on 5th June, 2020 an Ordinance to further amend the Insolvency and Bankruptcy Code,2016. Notwithstanding anything contained in sections 7,9 and 10, no application for initiation of corporate insolvency …

SC Issues Notice On Pleas Against Conditions Introduced By IBC Ordinance 2019 For Homebuyers' Insolvency Petitions [Read Order]
5 years, 2 months ago

SC Issues Notice On Pleas Against Conditions Introduced By IBC Ordinance 2019 For Homebuyers' Insolvency Petitions [Read Order]

Live Law  

The Supreme Court on Monday issued notice on petitions which challenge the constitutional validity of the conditions introduced by Insolvency and Bankruptcy Code Ordinance 2019 on the homebuyers' right to file insolvency petition against defaulting builders.A bench comprising Justices R F Nariman and Ravindra Bhat has also ordered status quo on the homebuyers' petitions pending. The Supreme Court on Monday …

NCLAT Says Dissenting Financial Creditors Cannot Be Discriminated Against [Read Judgment]
5 years, 6 months ago

NCLAT Says Dissenting Financial Creditors Cannot Be Discriminated Against [Read Judgment]

Live Law  

Ringing a bell of caution for all future resolution plans under the IB Code, the Hon'ble NCLAT has reiterated that resolution plans must not discriminate between similarly situated creditors, and must conform to the requirements of the amended Regulation 38 of the Insolvency and Bankruptcy Board of India Regulations, 2016. The Appellant, who had dissented with the approved Resolution Plan, …

Debarment of The Defaulting Resolution Applicants: A Need of The Hour
5 years, 9 months ago

Debarment of The Defaulting Resolution Applicants: A Need of The Hour

Live Law  

However, in some matters, the resolution plan are yet to see the light of the day because the successful resolution applicants have either withdrawn from the resolution process before the approval of their respective resolution plan by the National Company Law Tribunal or have failed to implement the approved resolution plan for one or other reasons and as a result, …

IBC Section 29A needs more clarity, says SBI’s Rajnish Kumar
6 years, 2 months ago

IBC Section 29A needs more clarity, says SBI’s Rajnish Kumar

Live Mint  

Mumbai: State Bank of India chairman Rajnish Kumar said Section 29A of Insolvency and Bankruptcy Code, which disallows defaulting promoters and related persons from bidding for assets, is being “stretched too far”. “Everywhere, it is this Section 29A causing the maximum problem,” Kumar said. Kumar said the practice of submitting late bids “is not the way in which IBC can …

Revised Norms for Home Buyers Under Insolvency Proceedings Notified [Read Notification]
6 years, 8 months ago

Revised Norms for Home Buyers Under Insolvency Proceedings Notified [Read Notification]

Live Law  

The Insolvency and Bankruptcy Board of India has notified the revised norms for the resolution of insolvency process and has paved way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by resolution professionals and permitting withdrawal of insolvency applications subject to certain conditions.The board has mandated that a. The Insolvency and …

IBBI amends norms, notifies procedures for home buyers under insolvency proceedings
6 years, 8 months ago

IBBI amends norms, notifies procedures for home buyers under insolvency proceedings

Firstpost  

With the amended norms, there is more clarity on procedural requirements for various classes of creditors, including home buyers. New Delhi: The IBBI has notified revised norms for insolvency resolution process paving the way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by resolution professionals and permitting withdrawal of insolvency applications …

Govt promulgates IBC ordinance; home buyers to be treated as financial creditors
6 years, 9 months ago

Govt promulgates IBC ordinance; home buyers to be treated as financial creditors

India Today  

New Delhi, Jun 6 Home buyers will now be recognised as financial creditors under the insolvency law, with the government promulgating an ordinance. "The ordinance provides significant relief to home buyers by recognising their status as financial creditors. Section 7 allows financial creditors to file application seeking insolvency resolution process. "Taking into account the wide range of disqualifications contained in …

Modi govt may clear ordinance to help home buyers stuck with incomplete projects
6 years, 11 months ago

Modi govt may clear ordinance to help home buyers stuck with incomplete projects

India Today  

The Union Cabinet on Wednesday may give its nod to an amendment to the Insolvency and Bankruptcy Code to provide relief to buyers who invested in housing projects that are still incomplete, and whose builders are facing bankruptcy, government sources said. The ordinance is aimed at clearing the conflicting provisions of the Bankruptcy Code and the Real Estate Act, which …

RBI issues revised guidelines to deal with banks' bad loans
7 years, 1 month ago

RBI issues revised guidelines to deal with banks' bad loans

The Quint  

Mumbai, Feb 13 The Reserve Bank of India has brought out a revised framework for speedy resolution of non-performing assets, or bad loans, by harmonising existing guidelines with the norms specified in the Insolvency and Bankruptcy Code, 2016.In a notification issued late on Monday, the RBI said the new guidelines have specified a framework for early identification and reporting of …

Writing Of Debt And Debt Restructuring: Another Conundrum With The Ordinance Amendment To The Insolvency Bankruptcy Code
7 years, 3 months ago

Writing Of Debt And Debt Restructuring: Another Conundrum With The Ordinance Amendment To The Insolvency Bankruptcy Code

Live Law  

Economic development needs an evolved legal system that can support and complement it. The need for refined corporate case resolution with the rise in complexity of investments and global market integration was one of the intentions of a consolidated comprehensive law on corporate insolvencies and bankruptcies in India. The IBC, on its own has left a lot of room for …

Insolvency code tightened: President okays ordinance, barring defaulters from bidding for stressed assets
7 years, 4 months ago

Insolvency code tightened: President okays ordinance, barring defaulters from bidding for stressed assets

Firstpost  

The amendments aim to keep-out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company. The changes in Section 5 of the Code, which define “Resolution Plan” and “Resolution Applicant”, are amended to provide clarity. Section 25 of the …

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