Information With Information Utilities Under IBC-How It Works

"Creditor has the incentive to close out its investment quickly so as to avail of alternative investment opportunities. Any alleged preference transaction could be saved provided transfer is made in the ordinary course of the business or financial affairs of the corporate debtor or the transferee; any transfer creating a security interest in property acquired by the corporate debtor to the extent that— such security interest secures new value and was given at the time of or after the signing of a security agreement that contains a description of such property as security interest and was used by corporate debtor to acquire such property; and such transfer was registered with an information utility on or before thirty days after the corporate debtor receives possession of such property. Similarly, section 36 requires a liquidator to form liquidation estate in relation to the corporate debtor comprising of all liquidation estate assets which shall include the any assets over which the corporate debtor has ownership rights, including all rights and interests therein as evidenced in the balance sheet of the corporate debtor or an information utility or records in the registry or any depository recording securities of the corporate debtor or by any other means as may be specified by the Board, including shares held in any subsidiary of the corporate debtor. Under section 52 of IBC, a secured creditor in the liquidation proceedings may— relinquish its security interest to the liquidation estate and receive proceeds from the sale of assets by the liquidator in the manner specified in section 53; or realise its security interest outside liquidation process with prior permission of the Liquidator who would verify such security interest and permit the secured creditor to realise only such security interest, the existence of which is proved either by the records of such security interest maintained by an information utility; or by such other means as may be specified by the Board. *********** The report of the Shri T K Vishwanathan Committee on Bankruptcy Law Reforms Volume I: Rationale and Design Working Group under chairmanship of Shri N.H. Siddiqui set up by the Reserve Bank in 1999 RBI Notification No.RBI/2013-14/601 dated May 22, 2014 Under section 45 of the RBI Act, 1934 section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Rule 3 of the Registration of Assignment of Receivables Rules, 2012 read with Section 19 of the Factoring Regulation Act, 2011 Section 3 of IBC Section 3 of IBC Section 3 of IBC Section 43 IBC Section 215 of IBC Section 33 of IBC Section 38 of IBC Section 214 of IBC Sub-Regulation 22 of Insolvency and Bankruptcy Board of India Regulations, 2017 Mr.Mukesh Chand is the General Manger-Legal with SIDBI