The IBC has an incentive problem
6 years, 3 months ago

The IBC has an incentive problem

Live Mint  

The Insolvency and Bankruptcy Code was introduced by the Narendra Modi government in December 2016 to expeditiously resolve claims involving insolvent companies in a bid to tackle the ‘bad loan’ problem plaguing India’s banking system. A new study by National Institute of Public Finance and Policy’s Pratik Datta argues that such ‘value destruction’ of profitable businesses is due to certain design flaws in the law. For instance, any insolvency resolution plan under the law relies on the vote of financial creditors, whose interest in the firm may not go beyond the recovery of their own claims. Datta argues that a well-designed insolvency law should differentiate between “financially distressed” firms and “economically distressed” firms.

 economically  firms  distressed  datta  incentive  value  businesses  claims  company  insolvency  ibc  law  problem

History of this topic

IBC Monthly Digest [February 2025]
3 weeks, 3 days ago

IBC Monthly Digest [February 2025]

Live Law  

Nominal Index: Damodar Valley Corporation vs. Mackeil Ispat & Forging Ltd. & Anr., Company Appeal No. Case Title: Edelweiss Asset Reconstruction Company Ltd. vs. Chirag Rejendrakumar Shah Case Number: Company Appeal No.242 of 2025 The National Company Law Appellate Tribunal New Delhi bench comprising Justice Ashok Bhushan, Barun Mitra and Arun Baroka have re-iterated that that liquidation of the Corporate …

I&B board to consider changes in bankruptcy laws amid low recovery rates: How will this streamline court proceedings?
1 month, 1 week ago

I&B board to consider changes in bankruptcy laws amid low recovery rates: How will this streamline court proceedings?

Live Mint  

The government is considering changes to its bankruptcy laws, including streamlining court processes, amid growing concerns about lengthy proceedings and low recovery rates. While Prime Minister Narendra Modi’s administration revamped bankruptcy laws about a decade ago, mandating resolutions within 330 days, cases routinely exceed that limit. How will I&B's new bankruptcy laws streamline court proceedings? Meanwhile, data from the Reserve …

IBC Weekly Round-Up [17th February-23rd February 2025]
1 month, 1 week ago

IBC Weekly Round-Up [17th February-23rd February 2025]

Live Law  

Nominal Index: BANK OF BARODA v. FAROOQ ALI KHAN & ORS., CIVIL APPEAL NO. Case Title: Edelweiss Asset Reconstruction Company Ltd. vs. Chirag Rejendrakumar Shah Case Number: Company Appeal No.242 of 2025 The National Company Law Appellate Tribunal New Delhi bench comprising Justice Ashok Bhushan, Barun Mitra and Arun Baroka have re-iterated that that liquidation of the Corporate Debtor should …

IBC Weekly Round-Up [10th February -16th February 2025]
1 month, 2 weeks ago

IBC Weekly Round-Up [10th February -16th February 2025]

Live Law  

Nominal Index: Global Indian School Education Services Pvt. 5841, 5842, 5843 of 2023 The National Company Law Appellate Tribunal New Delhi bench of Justice Rakesh Kumar Jain, Mr. Naresh Salecha and Mr. Indevar Pandey has held that the security amount deposited under a Memorandum of Understanding without any intention of commercial effect of borrowing and time value of money cannot …

Cross Border Insolvency And Bankruptcy & Corporate Restructuring
1 month, 3 weeks ago

Cross Border Insolvency And Bankruptcy & Corporate Restructuring

Live Law  

Trade, investment, and cross-border economic activity increased after India's economy was liberalized in the 1990s. Due to the country's expanding economic integration, which has led to Indian businesses operating abroad and dealing with cross-border insolvency concerns, this phenomenon is becoming more and more significant in India. The Cross-border Insolvency Rules/Regulation Committee approved Draft Part Z subordinate legislation, which was created …

Economic Survey 2025: IBC nudging companies to resolve their distress early
2 months ago

Economic Survey 2025: IBC nudging companies to resolve their distress early

Live Mint  

The Economic Survey 2024-25 lavished praise on the Insolvency and Bankruptcy Code for transforming the behaviour of distressed companies, highlighting that the law has acted as a deterrent, encouraging many firms to resolve their financial distress early in order to avoid the consequences of a resolution process. they are resolving when default is imminent, on receipt of a notice for …

Recasting insolvency resolution
2 months, 2 weeks ago

Recasting insolvency resolution

The Hindu  

The Insolvency and Bankruptcy Code, 2016 is one of India’s most significant economic reforms, introduced to address the challenges of insolvency resolution in a structured and time-bound manner. The recent Supreme Court of India judgment in Jet Airways has laid bare the many structural infirmities that are plaguing India’s insolvency regime. This is despite the Supreme Court’s repeated calls for …

Annual Digest Of IBC Cases: 2024
3 months ago

Annual Digest Of IBC Cases: 2024

Live Law  

Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association vs. M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be absolved from its liability to discharge its Operational debt by the Insurance Company's payment to the Operational Creditor …

IBC Monthly Digest: December 2024
3 months ago

IBC Monthly Digest: December 2024

Live Law  

SUPREME COURT Case Title : China Development Bank vs Doha Bank OPSC and others Citation : 2024 LiveLaw 1029 The Supreme Court has observed a default is not necessary for a debt to become a financial debt under the Insolvency and Bankruptcy Code, 2016. Case Number: Company Appeal No.1380 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan, …

Businesses need to brace for tougher regulatory landscape in 2025
3 months ago

Businesses need to brace for tougher regulatory landscape in 2025

Live Mint  

Corporations must brace for heightened regulatory scrutiny in 2025 with various regulators preparing to enforce stricter oversight and actions. The Securities and Exchange Board of India, Competition Commission of India, Central Consumer Protection Authority, and tax authorities are expected to tighten their stance, forcing businesses to enhance compliance, streamline processes, and adapt to evolving governance standards. “The increase in the …

IBC Weekly Round-Up: 16th December -20th December 2024
3 months, 1 week ago

IBC Weekly Round-Up: 16th December -20th December 2024

Live Law  

NCLAT The NCLAT New Delhi bench of Justice Ashok Bhushan, Barun Mitra and Arun Baroka has held that Non Fund Based facilities cannot be refused to be disbursed when the approved Resolution Plan contains a clause for their disbursement. 7303, 7304 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has …

2024 year-end review: How legal precedents and IBC reforms reshaped India's financial system
3 months, 1 week ago

2024 year-end review: How legal precedents and IBC reforms reshaped India's financial system

Firstpost  

The Indian banking system has undergone significant changes in recent years, largely due to the growing economy and increased consumer spending. Recovery statistics and IBC The enactment of the Insolvency and Bankruptcy Code in 2016 marked a transformative change in India’s banking and corporate law, providing a responsive framework for reorganising distressed corporate debtors and maximising their value. Creditors have …

IBC reforms: Let’s strengthen the Code as a key growth enabler
3 months, 4 weeks ago

IBC reforms: Let’s strengthen the Code as a key growth enabler

Live Mint  

The Insolvency and Bankruptcy Code transformed India’s approach to corporate financial distress. The IBC succeeded because the entire ecosystem and institutional infrastructure, from regulators, including the new Insolvency and Bankruptcy Board of India, and the legislature to the courts, banks and the market worked for it. The rate of recovery fell to 27% of creditors’ admitted claims in 2023-24 from …

IBC Weekly Round-Up [18th November To 24th November 2024]
4 months, 1 week ago

IBC Weekly Round-Up [18th November To 24th November 2024]

Live Law  

Nominal Index Siti Networks Ltd. vs. Rajiv Suri NO. Versus Shri Sutanu Sinha Case Reference: Company Appeal No.1927 of 2024 The NLCAT New Delhi bench of Justice Ashok Bhushan and Barun Mitra held that no interest on principal amount can be claimed if there is no clause to this effect in the agreement executed between the parties. The Tribunal further …

Insolvency board moves to limit liquidators’ discretion
4 months, 1 week ago

Insolvency board moves to limit liquidators’ discretion

Live Mint  

The Insolvency and Bankruptcy Board of India has sought to limit the discretion of officials authorized to liquidate insolvent companies and has said they must consult creditors compulsorily when rejecting the highest bids. In a proposal released for public feedback on Tuesday, the IBBI also said liquidators must verify the highest bidder for the assets of the company getting dissolved …

The Insolvency Code’s progress: From deep haircuts to fuller recoveries
4 months, 3 weeks ago

The Insolvency Code’s progress: From deep haircuts to fuller recoveries

Live Mint  

The Insolvency and Bankruptcy Code has long been associated with delays and financial creditors taking significant losses in high-profile corporate insolvencies. The National Company Law Appellate Tribunal dismissed challenges from competing bidders and upheld the resolution plan of Sarda Energy, ensuring full recovery for financial creditors. Similarly, in the more recent case of Sripriya Kumar, financial creditors received more than …

Buyers in possession of plot, flat or building must be given ownership: IBBI
4 months, 3 weeks ago

Buyers in possession of plot, flat or building must be given ownership: IBBI

Hindustan Times  

The Insolvency and Bankruptcy Board of India has proposed reforms to streamline the insolvency process for real estate companies and enhance protection for homebuyers. For thousands of buyers awaiting registration of housing units in projects undergoing the Bankruptcy resolution process, the IBBI has proposed that ownership of the plot, apartment or building should be transferred to buyers who are in …

Jet Airways liquidation: A wake-up call for India’s insolvency code
4 months, 3 weeks ago

Jet Airways liquidation: A wake-up call for India’s insolvency code

Live Mint  

New Delhi: The Supreme Court’s decision ordering the liquidation of Jet Airways, once India’s leading airline, has provided sufficient fodder for bankruptcy experts urging for an overhaul of India’s insolvency framework. JKC’s repeated non-compliance with the terms of the resolution plan caused the value of the plan to diminish significantly," said Devesh Dubey, senior associate at Sanjay RPK Law, a …

Financial Debt Can Be Proven From Other Relevant Documents, NCLAT New Delhi
5 months, 1 week ago

Financial Debt Can Be Proven From Other Relevant Documents, NCLAT New Delhi

Live Law  

The NCLAT New Delhi Bench of Justices Ashok Bhushan and Barun Mitra held that a written financial contract is not a pre-condition or an exclusive requirement for proving existence of debt. It has been further amplified that the Application to Adjudicating Authority Rules, 2016 and CIRP Regulations makes it clear that financial debt can be proven from other relevant documents …

The Forgotten Creditors: IBC's Dual Approach For Homebuyers And Other Consumers
7 months ago

The Forgotten Creditors: IBC's Dual Approach For Homebuyers And Other Consumers

Live Law  

The Insolvency and Bankruptcy landscape in India underwent a significant transformation with the enactment of the Insolvency and Bankruptcy Code in 2016. Homebuyer as Financial Creditor| RERA-IBC Standoff Under the Insolvency and Bankruptcy Code 2016, creditors are categorized into two distinct groups: financial creditors, defined under Section 5, and operational creditors, defined under Section 5. The NCLAT also in the …

Weekly Digest Of IBC Cases: 22nd July 2024 To 28th July 2024
8 months ago

Weekly Digest Of IBC Cases: 22nd July 2024 To 28th July 2024

Live Law  

Supreme Court IBC | CIRP Of Holding Company Cannot Include Subsidiary's Assets: Supreme Court Case no. Insolvency Resolution Of Corporate Guarantor Won't Bar Creditor From Filing CIRP Against Corporate Debtor For Balance Debt : Supreme Court Case Title: BRS Ventures Investments Ltd. 313 of 2024 The National Company Law Appellate Tribunal, Delhi bench of Justice Ashok Bhushan and Mr Barun …

Economic Survey: IBC has transformed credit market landscape for good
8 months, 1 week ago

Economic Survey: IBC has transformed credit market landscape for good

Live Mint  

New Delhi: The Economic Survey lavished praise on the Insolvency and Bankruptcy Code, saying the 2016 law has had a profound impact on India's credit market landscape. It has helped reduce banks' stress by lowering bad loans, rescued failing corporate debtors, and revitalized distressed assets in the real sector, injecting fresh momentum into the financial markets' recovery segment, the Economic …

Half Yearly Digest Of IBC Cases : January To June,2024
8 months, 2 weeks ago

Half Yearly Digest Of IBC Cases : January To June,2024

Live Law  

Supreme Court IBC | Moratorium Under S 14 No Bar To Execute Decree Against Directors/Officers Of Corporate Debtor: Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association vs. M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be …

Number of resolutions under IBC to go up every year: IBBI chairman
8 months, 3 weeks ago

Number of resolutions under IBC to go up every year: IBBI chairman

New Indian Express  

NEW DELHI: Amid criticism over delayed resolution of cases under the Insolvency and Bankruptcy Code, the chairman of insolvency regulator pointed out on Friday that 270 cases defaults were resolved in 2023-24 against the average 125 in the previous years. Ravi Mital, the chairman of Insolvency and Bankruptcy Board of India, said that the number of resolution per year would …

NCLT Asks IBBI To Incorporate Provisions In CIRP Regulations For Treating Transferred Winding-Up Cases
9 months, 1 week ago

NCLT Asks IBBI To Incorporate Provisions In CIRP Regulations For Treating Transferred Winding-Up Cases

Live Law  

The National Company Law Tribunal Principle Bench of Ramalingam Sudhakar and Avinash K. Srivastava has asked the Insolvency and Bankruptcy Board of India to amend the Corporate Insolvency Resolution Process regulations. This directive was issued by NCLT to address the handling of cases involving the winding up of companies that have been transferred to the NCLT under Section 433 of …

IBBI proposes amendments to insolvency rules; seeks public comments
9 months, 1 week ago

IBBI proposes amendments to insolvency rules; seeks public comments

The Hindu  

The Insolvency and Bankruptcy Board of India has proposed amendments to the Insolvency Resolution Process for Corporate Process regulations, to enhance efficiency and reduce costs, and sought stakeholder inputs by July 10. These amendments are expected to enhance the efficiency and transparency of the Corporate Insolvency Resolution Process, and benefiting creditors and other stakeholders involved in the CIRP. Seeking comments …

Weekly Digest Of IBC Cases: 03rd June 2024 To 09th June 2024
9 months, 3 weeks ago

Weekly Digest Of IBC Cases: 03rd June 2024 To 09th June 2024

Live Law  

HIGH COURTS Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court Case Title: Sundaresh Bhat vs Insolvency And Bankruptcy Board of India Case No. 105, 106, 990 of 2024 The National Company Law Appellate Tribunal Delhi, comprising Mr. Justice Rakesh Kumar Jain, Mr. Naresh Salecha, and Mr. Indevar Pandey held that …

Weekly Digest Of IBC Cases: 13th To 19th May 2024
10 months, 1 week ago

Weekly Digest Of IBC Cases: 13th To 19th May 2024

Live Law  

NCLAT NCLAT Delhi Evokes Doctrine Of 'Approbate & Reprobate', Imposes Rs. 124 of 2023 The National Company Law Appellate Tribunal Delhi, comprising Justice Rakesh Kumar Jain, Mr. Naresh Salecha, and Mr. Indevar Pandey evokes the Doctrine of 'Approbrate and Reprobrate' imposing a cost of Rs. 1589 of 2023 The National Company Law Appellate Tribunal Delhi, comprising Justice Ashok Bhushan, Mr. …

IBC Cases Quarterly Digest : January To March 2024
11 months, 3 weeks ago

IBC Cases Quarterly Digest : January To March 2024

Live Law  

Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association V M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be absolved from its liability to discharge its Operational debt by the Insurance Company's payment to the Operational Creditor …

IBC Revolutionizes Corporate Insolvency
11 months, 4 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 …

IBBI Directs Liquidator To Make Certain Declaration When Financial Service Provider Undergoes Voluntary Liquidation
1 year, 1 month ago

IBBI Directs Liquidator To Make Certain Declaration When Financial Service Provider Undergoes Voluntary Liquidation

Live Law  

The Insolvency and Bankruptcy Board of India has issued a circular dated 13.02.2024, intimating that when a Financial Service Provider undergoes voluntary liquidation under IBC, then the Liquidator shall declare that: the category of Financial Service Providers has been notified by the Central Government under Section 227 of IBC, and the corporate person has obtained prior permission from the appropriate …

IBC resolves 891 cases involving Rs 10 lakh crore loan defaults till Dec '23
1 year, 1 month ago

IBC resolves 891 cases involving Rs 10 lakh crore loan defaults till Dec '23

New Indian Express  

NEW DELHI: The Insolvency and Bankruptcy Code has resolved 891 cases of defaults involving banks loans worth R10 lakh crore till December 2023. According to IBBI’s quarterly report, 27,500 applications for initiation of corporate insolvency resolution process against companies involving defaults of R9.74 lakh crore were withdrawn before admission. As many as 79 corporate insolvency cases were resolved in the …

Settle disputes by mediation: IBBI panel recommends
1 year, 1 month ago

Settle disputes by mediation: IBBI panel recommends

Live Mint  

New Delhi: An expert panel set up by bankruptcy rule maker, Insolvency and Bankruptcy Board of India, has recommended voluntary mediation as a way of settling disputes that arise when creditors take over sinking businesses. Viswanathan, the panel said in its report that mediation could be a complementary mechanism for settling disputes relating to bankruptcy resolution. The expert panel said …

Monthly Digest Of IBC Cases: January 2024
1 year, 2 months ago

Monthly Digest Of IBC Cases: January 2024

Live Law  

Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association V M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be absolved from its liability to discharge its Operational debt by the Insurance Company's payment to the Operational Creditor …

RBI’s Das envisages framework for Group Insolvency Mechanism under IBC
1 year, 2 months ago

RBI’s Das envisages framework for Group Insolvency Mechanism under IBC

The Hindu  

Reserve Bank of India governor Shaktikanta Das on Thursday envisaged a Group Insolvency Mechanism for better recovery of dues of creditors under the Insolvency & Bankruptcy Code process. Substantive consolidation pertains to the consolidation of assets, liabilities, and operations of multiple entities within a group, disregarding their separate legal entity status,” Mr. Das said while speaking at the CAFRAL Conference. …

It is time for a full-scale overhaul of the Insolvency and Bankruptcy Code
1 year, 2 months ago

It is time for a full-scale overhaul of the Insolvency and Bankruptcy Code

The Hindu  

The Insolvency and Bankruptcy Code came into effect in 2016 with the following objectives: Maximise the value of debtor’s assets; promote and encourage entrepreneurship; ensure timely and effective resolution of IBC cases; balance the interests of all stakeholders, including creditors, debtors, and staff; facilitate the promotion of a competitive market and economy; and provide for a framework to deal with …

The SC’s ruling on personal debt guarantees will help unlock dead capital
1 year, 4 months ago

The SC’s ruling on personal debt guarantees will help unlock dead capital

Live Mint  

The adoption of the Insolvency and Bankruptcy Code in 2016 was one of the most important economic reforms of the past 10 years. Various earlier attempts, such as the very old Sick Industrial Companies Act, the SARFAESI law of 2003 and various debt recovery tribunals, had yielded unsatisfactory results. In the first five years of its operation, the value of …

Supreme Court upholds Modi govt's Insolvency and Bankruptcy Code
1 year, 4 months ago

Supreme Court upholds Modi govt's Insolvency and Bankruptcy Code

Op India  

On Thursday, 9th November, the Supreme Court upheld the constitutional validity of the provisions of the Insolvency and Bankruptcy Code, 2016, relating to Personal Guarantors’s Insolvency Resolution. The Supreme Court bench ruled that it could not read an adjudicatory role into these rules and that changing the adjudicatory role would render the entire chronological procedure null and void. Back in …

Disclose pending litigation when filing for bankruptcy, IBBI proposes
1 year, 5 months ago

Disclose pending litigation when filing for bankruptcy, IBBI proposes

Live Mint  

New Delhi: Businesses seeking to wind up voluntarily under the bankruptcy code should have to reveal all pending litigation and regulatory assessments, and ensure that their financial obligations from these proceedings are provided for, bankruptcy regulator IBBI has proposed. The proposal is part of a new set of regulations – the IBBI Regulations, 2023 – for which the regulator has …

IBC Not A Debt Recovery Mechanism, NCLAT Chennai Reiterates
1 year, 6 months ago

IBC Not A Debt Recovery Mechanism, NCLAT Chennai Reiterates

Live Law  

The National Company Law Appellate Tribunal, Chennai Bench comprising of Justice M. Venugopal and Shreesha Merla, dismissed an appeal filed in Mr. Maulik Kirtibhai Shah vs. United Telecom Limited. against the order of the National Company Law Tribunal Bangalore Bench which had dismissed the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Maulik Kirtibhai Shah seeking …

Why Centre should prioritise IBC's alignment with other laws
1 year, 6 months ago

Why Centre should prioritise IBC's alignment with other laws

Firstpost  

The Indian Bankruptcy Code provides a comprehensive legal framework but does not eliminate the need for approvals from regulators and government bodies like CCI, RBI, SEBI, and others when resolution plans include their jurisdiction India currently ranks as the fifth largest economy and is projected to become the third largest economy by 2030. The IBC in India has witnessed numerous …

Book on Insolvency and Bankruptcy Code 2016 launched
1 year, 7 months ago

Book on Insolvency and Bankruptcy Code 2016 launched

The Hindu  

Defaulter’s Paradise Lost- Demystifying the Insolvency and Bankruptcy Code, 2016, a book written by advocate Anant Merathia, was launched here on Friday. Mr. Merathia said the Insolvency and Bankruptcy Code 2016 was one of the unique legislations which had brought together in the same sphere of discussion, varied subjects such as business, economy, finance, commerce, law and a lot more. …

Corporate Distress And Compassion: Integrating Humanitarian Values Into NCLT's Decisions
1 year, 7 months ago

Corporate Distress And Compassion: Integrating Humanitarian Values Into NCLT's Decisions

Live Law  

The Insolvency and Bankruptcy Code, 2016 is a landmark legislation that aims to provide a speedy and efficient resolution of Insolvency and Bankruptcy cases in India. The NCLT may admit insolvency cases after going through the facts of the case and examining the operational status and viability of the Corporate Debtor. For example, if the Corporate Debtor is a vaccine …

Avoidance Of Undervalued Transactions Under Section 45 Of The IBC, 2016
1 year, 9 months ago

Avoidance Of Undervalued Transactions Under Section 45 Of The IBC, 2016

Live Law  

The transactions that can be avoided or those referred to as avoidable transactions are covered under Sections 43 to 51 of the Insolvency and Bankruptcy Code, 2016, respectively. This article seeks to undertake a comparative analysis of the treatment of undervalued transactions under the UK Insolvency Act 1986 and the Insolvency and Bankruptcy Code of India 2016. Understanding Undervalued Transactions …

Regulatory ire on insolvency professionals over breaches
2 years ago

Regulatory ire on insolvency professionals over breaches

Live Mint  

New Delhi: The Insolvency and Bankruptcy Board of India has sent a strong message to professionals who have allegedly erred while steering sinking companies through the bankruptcy resolution process by taking action against a dozen such officials since January. Experts also said that given the bankruptcy code is a new law, regulations are fast evolving, and the resolution professionals have …

“Misconceived, Not Maintainable”: NCLAT Delhi Dismisses Appeal Filed By IBBI
2 years, 1 month ago

“Misconceived, Not Maintainable”: NCLAT Delhi Dismisses Appeal Filed By IBBI

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Rakesh Kumar Jain and Mr. Naresh Salecha, while adjudicating an appeal filed in Insolvency & Bankruptcy Board of India v GTL Infrastructure Ltd. & Ors., has dismissed an appeal filed by the Insolvency and Bankruptcy Board of India, challenging the dismissal of a Section 7 petition in a matter …

The IBC VS. SEBI: Critical Analysis Of Moratorium Under IBC
2 years, 1 month ago

The IBC VS. SEBI: Critical Analysis Of Moratorium Under IBC

Live Law  

Section 28A of the Securities and Exchange Board of India Act, 1992 mentions about the recovery of proceeds from debtors in the form of attachment of immovable and movable property, attachment of bank accounts, etc. In Ms.Anju Agarwal v. Bombay Stock Exchange, the NCLAT decided that section 14 of the IBC will take precedence over section 28A of the SEBI …

Bankruptcy resolutions expected to soar after Budget spells relief for RPs
2 years, 1 month ago

Bankruptcy resolutions expected to soar after Budget spells relief for RPs

Live Mint  

Liquidators in India, who are entrusted with winding up bankrupt companies, will no longer be prosecuted for failing to comply with income tax regulations. The Union Budget 2023 has decriminalized section 276A of the Income Tax Act which enabled criminal prosecution of a liquidator for failing to give notice of his/her appointment within 30 days or set aside amount or …

Ministry Of Corporate Affairs Invites Public Comments On Proposed Changes In IBC
2 years, 2 months ago

Ministry Of Corporate Affairs Invites Public Comments On Proposed Changes In IBC

Live Law  

The Ministry of Corporate Affairs, Government of India, has issued a circular inviting comments from the public on the changes proposed to be made in the Insolvency and Bankruptcy Code, 2016. Proposed Amendments In a circular issued on 18.01.2023, the Ministry of Corporate Affairs has proposed numerous changes in IBC, including the following: Mandatory to admit Section 7 application where …

Banks bear brunt of IBC’s quick resolutions
2 years, 3 months ago

Banks bear brunt of IBC’s quick resolutions

New Indian Express  

The Insolvency and Bankruptcy Code was expected to vastly improve recovery for banks and reduce the time taken to resolve default cases. Recently, the Reserve Bank of India in its Financial Stability Report said that recovery through resolutions should not be compared with claims submitted by banks. Before IBC came into force, average recoveries were 26% and the time taken …

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