Avoidance Of Undervalued Transactions Under Section 45 Of The IBC, 2016
1 year, 6 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 Section 45 provides for, If the liquidator or the resolution professional, as the case may be, on an examination of the transactions of the corporate debtor referred to in sub-section determines that certain transactions were made during the relevant period under section 46, which were undervalued, he shall make an application to the Adjudicating Authority to declare such transactions as void and reverse the effect of such transaction in accordance with this Chapter. Undervalued Transactions in UK Insolvency Law and the Insolvency and Bankruptcy Code of India : Comparative Analysis UK Perspective: The Insolvency Act 1986 According to the UK Insolvency Act 1986, a transaction is deemed undervalued if it involves no exchange of consideration, or if the value received by the company is significantly less than what was provided. The Reid v Ramlort case broadened the understanding of undervalued transactions in insolvency law, emphasizing the debtor's solvency status during the transaction and the complexity of valuing the transaction.

India Court Insolvency Value Code 2016 Transaction Transactions Insolvency Proceedings Good Faith Related Ibc Section 45 Debtor Related Parties Section 66 Undervalued Insolvency Law Such Transaction Unrelated Parties Undervalued Transactions Such Transactions  undervalued  value  insolvency  uk  avoidance  transactions  transaction  related  debtor  2016  ibc  45  court

History of this topic

Establishing “Pre-Existence Disputes” Under The IBC Regime
3 weeks ago

Establishing “Pre-Existence Disputes” Under The IBC Regime

Live Law  

The Insolvency and Bankruptcy Code was enacted to facilitate timely resolution to insolvency proceedings, maximisation of value of assets of the debtors, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders. However, the section has been liberally interpreted by the Supreme Court in Mobilox Innovations Private Limited Vs. Kirusa Software Private Limited, wherein it has …

Pre-Pack Insolvency Resolution: A Solution for MSME Distress? - Examining India's Pre-Pack Schemes And Their Role In Resolving MSME Insolvency
1 month ago

Pre-Pack Insolvency Resolution: A Solution for MSME Distress? - Examining India's Pre-Pack Schemes And Their Role In Resolving MSME Insolvency

Live Law  

63 million MSMEs employ nearly 115 million individuals, contributing to over 30% of India's GDP. A streamlined process enables quicker resolutions by allowing a company and its creditors to negotiate a pre-packaged plan before entering formal insolvency proceedings. For instance, since a company and its creditors negotiate the terms before entering formal insolvency proceedings, there's a risk that certain creditors …

Insolvency board moves to limit liquidators’ discretion
1 month 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
1 month, 2 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
1 month, 2 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 …

The Forgotten Creditors: IBC's Dual Approach For Homebuyers And Other Consumers
3 months, 3 weeks 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 …

IBBI proposes amendments to insolvency rules; seeks public comments
6 months 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 …

Preferential Transaction Under Section 43 Of IBC, Fraudulent Intent Need Not To Be Proved : NCLT Mumbai
6 months, 2 weeks ago

Preferential Transaction Under Section 43 Of IBC, Fraudulent Intent Need Not To Be Proved : NCLT Mumbai

Live Law  

The National Company Law Tribunal Mumbai Bench-I of Justice Shri V.G. Accordingly, these transactions squarely falls within the deeming fiction provided in section 43 of the Code.” Brief Facts: The matter pertained to several applications filed by the Resolution Professional, Mr. Ankur Kumar, of M/s Mahavir Roads and Infrastructure Private Limited. It was contended that transactions between the Corporate Debtor …

IBC Cases Quarterly Digest : January To March 2024
8 months, 2 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
8 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 …

Monthly Digest Of IBC Cases: January 2024
10 months, 3 weeks 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 …

IBC | Statutory Set Off Or Insolvency Set Off Inapplicable To Corporate Insolvency Resolution Process: Supreme Court
11 months, 2 weeks ago

IBC | Statutory Set Off Or Insolvency Set Off Inapplicable To Corporate Insolvency Resolution Process: Supreme Court

Live Law  

The Supreme Court has held statutory set off or insolvency set off is not applicable to Corporate Insolvency Resolution Process proceedings under the Insolvency and Bankruptcy Code, 2016. “We would not extend it by implication, when the legislature has not accepted applicability of mutual set-off at the initial stage, that is, the Corporate Insolvency Resolution Process stage.” BACKGROUND FACTS In …

IBBI Amends Insolvency Professional Regulations W.E.F. 18th September 2023
1 year, 2 months ago

IBBI Amends Insolvency Professional Regulations W.E.F. 18th September 2023

Live Law  

The Insolvency and Bankruptcy Board of India vide its notification dated 18.09.2023, has notified amendments to the Insolvency and Bankruptcy Board of India Regulations, 2016. The amended provisions are: “6 An individual enrolled with an insolvency professional agency as a professional member may make an application to the Board through the insolvency professional agency of which he is a member, …

Ministry Of Corporate Affairs Invites Public Comments On Proposed Changes In IBC
1 year, 11 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 …

Why India's bankruptcy regime needs to be fixed
1 year, 11 months ago

Why India's bankruptcy regime needs to be fixed

Live Mint  

New Delhi: The government is proposing to make changes to India’s six-year-old Insolvency and Bankruptcy Code. It was introduced with the objective of simplifying insolvency and bankruptcy proceedings, protecting the interests of all stakeholders — the company, employees, debtors, and especially, creditors—and for timely revival of the company. 25,000 in line for Flipkart’s $700 mn Esop cash bonanza Reforms set …

Supreme Court Quarterly Digest on IBC [July - September, 2022]
2 years, 1 month ago

Supreme Court Quarterly Digest on IBC [July - September, 2022]

Live Law  

Insolvency and Bankruptcy Code 2016 - There can be no dispute with the proposition that the period of limitation for making an application under Section 7 or 9 of the IBC is three years from the date of accrual of the right to sue, that is, the date of default. State Tax Officer v. Rainbow Papers Ltd., 2022 LiveLaw 743 …

Insolvency and Bankruptcy Code To Take Precedence Over Customs Act: SC
2 years, 3 months ago

Insolvency and Bankruptcy Code To Take Precedence Over Customs Act: SC

News 18  

The Supreme Court on Friday held that the Insolvency and Bankruptcy Code will take precedence over the Customs Act. CJI Ramana, while pronouncing the judgment, said Customs authorities have only limited jurisdiction to assess the quantum and they cannot take steps to recover the dues, once the moratorium under IBC is declared, the report added. “Thus, this will help in …

IBC Cases Weekly Round Up: 20 June To 26 June, 2022
2 years, 5 months ago

IBC Cases Weekly Round Up: 20 June To 26 June, 2022

Live Law  

NCLAT Case Title: Prashant Agarwal v Vikash Parasprampuria Case No. 690 of 2022 The National Company Law Appellate Tribunal, New Delhi Bench, comprising of Justice M. Venugopal and Shri Kanthi Narahari, has stayed the constitution of the Committee of Creditors in the Corporate Insolvency Resolution Process of Bombay Rayon Fashions Ltd. : CP No.1337/MB/2020 The National Company Law Tribunal, Mumbai …

Bettering Results : Partners From Top Law Firms Teach The Insolvency & Bankruptcy Code, 2016: Register Now!
2 years, 6 months ago

Bettering Results : Partners From Top Law Firms Teach The Insolvency & Bankruptcy Code, 2016: Register Now!

Live Law  

The Insolvency and Bankruptcy Code, 2016 is one of the most significant economic reforms implemented by the Indian government in recent years. Bettering Results is here to help you gain detailed knowledge and understanding from both theoretical and practical standpoints with the help of Top IBC Lawyers and leading insolvency professionals. Through this Certificate Course & Mentorship Program on "Insolvency …

IBBI Notifies The Amended Insolvency And Bankruptcy Board Of India (Voluntary Liquidation Process) Regulations, 2017
2 years, 8 months ago

IBBI Notifies The Amended Insolvency And Bankruptcy Board Of India (Voluntary Liquidation Process) Regulations, 2017

Live Law  

The Insolvency and Bankruptcy Board of India has issued a Press Release on 08.04.2022 notifying the public that amendments have been made to Insolvency and Bankruptcy Board of India Regulations, 2017. Therefore, in order to curtail such delays and ensure faster exit for firms, amendments have been made to modify the timelines for activities undertaken during the voluntary liquidation process. …

𝙸𝚄𝚁𝙸𝚂 𝙹𝚄𝚁𝙰: 5 – Day Live Lecture Series On "IBC (Insolvency And Bankruptcy Code) 2016"
3 years ago

𝙸𝚄𝚁𝙸𝚂 𝙹𝚄𝚁𝙰: 5 – Day Live Lecture Series On "IBC (Insolvency And Bankruptcy Code) 2016"

Live Law  

About The Organization Iuris Jura started in the year 2020, aiming to create legal awareness and provides learning related to the law topics. About The 4 – Day Live Lecture Series 𝙸𝚄𝚁𝙸𝚂 𝙹𝚄𝚁𝙰 takes immense pride in announcing that we are organizing a 5 Day - Live Lecture Series on •"IBC 2016 ". Section 10, 238 and 95 of IBC …

IBC - The Journey So Far – Part III
3 years, 3 months ago

IBC - The Journey So Far – Part III

Live Law  

EMERGING LEGAL ISSUES CLOGGING RESOLUTION : There are few major emerging issues which could impact resolutions under IBC, one of which is shrinking market for resolution. With a view to settle the issue, Section 30 of the Code was also amended, by inserting a requirement for CoC to, inter alia, take into account the order of priority amongst creditors u/s …

Our bankruptcy code deserves credit for what it has achieved
3 years, 4 months ago

Our bankruptcy code deserves credit for what it has achieved

Live Mint  

Notwithstanding the different legal frameworks for bankruptcy and insolvency in place in various countries, all of them have two leading objectives: to facilitate liquidation of financially unviable companies, and to protect the rights of and provide equal treatment to similarly-situated creditors and other stakeholders. The Indian insolvency framework in the form of the Insolvency and Bankruptcy Code, 2016, is unique …

IBC - The Journey So Far – Part I
3 years, 4 months ago

IBC - The Journey So Far – Part I

Live Law  

This write up trace evolution of jurisprudence and short legal history under Insolvency and Bankruptcy Code, 2016. The system also envisaged time bound admission and disposal of application by the judicial authority namely National Company Law Tribunals. Resolution Under IBC& Recovery for Banks : As per the statistic under the Economic Survey 2020-2021 Report, the Code has rescued 308 CDs …

IBC Amendment Bill Passed In Lok Sabha To Allow Pre-Packaged Insolvency Process For MSMEs
3 years, 4 months ago

IBC Amendment Bill Passed In Lok Sabha To Allow Pre-Packaged Insolvency Process For MSMEs

Live Law  

The Lok Sabha on Wednesday passed the Insolvency and Bankruptcy Code Bill, 2021. It was introduced in the house on Monday, July 26 and passed without any discussion due to disruptions caused by opposition protests.As per the Government, the Covid-19 pandemic has taken a hit on the businesses, especially micro, small or medium enterprises which is critical to the. Thus, …

Takeaways For The Indian Cross-Border Insolvency Regime In Light Of COVID-19
3 years, 7 months ago

Takeaways For The Indian Cross-Border Insolvency Regime In Light Of COVID-19

Live Law  

The COVID-19 pandemic is a crisis unlike any other. Numerous questions are left unanswered due to the lack of a mechanism for cross-border insolvency proceedings, with the recent Jet Airways and Videocon proceedings serving as prime examples. States may incorporate the Model Law into their national legislation to deal with cross-border insolvency issues using cooperation and mediation. The main goal …

President Promulgates IBC Amendment Ordinance To Allow Pre-Packaged Insolvency Process For MSMEs
3 years, 8 months ago

President Promulgates IBC Amendment Ordinance To Allow Pre-Packaged Insolvency Process For MSMEs

Live Law  

The Central Government has promulgated Insolvency and Bankruptcy Code Ordinance 2021 to allow pre-packaged insolvency resolution process for corporate debtors classified as micro, small or medium enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.The Ordinance amends the Insolvency and Bankruptcy Code 2016 to allow the Central Government to notify. The Central Government has promulgated Insolvency and Bankruptcy …

"Book Review Of "Insolvency And Bankruptcy Code- Law And Practice"
3 years, 11 months ago

"Book Review Of "Insolvency And Bankruptcy Code- Law And Practice"

Live Law  

Writing a commentary on a law that is still growing at a pace faster than the fortunes of e-commerce businesses is, painful and challenging. The sheer volume of judgments from the Constitutional Courts and the National Company Law Appellate Tribunal and National Company Law Tribunals constitute the judicial side of the scheme of things under the Insolvency and Bankruptcy Code. …

The Insolvency And Bankruptcy Code (Amendment) Ordinance, 2020 And Remedies Available To Creditors
4 years, 2 months ago

The Insolvency And Bankruptcy Code (Amendment) Ordinance, 2020 And Remedies Available To Creditors

Live Law  

The speculations over altering the operation of Insolvency and Bankruptcy Code, 2016 have been doing rounds since the outbreak of COVID-19. Section 10 A introduced in the principal act in effect suspends initiation of corporate insolvency resolution process contained under Section 7 which empowers a financial creditor to initiate it, Section 9 initiation by operational creditors and Section 10 initiation …

UK’s insolvency reforms can show India the way
4 years, 5 months ago

UK’s insolvency reforms can show India the way

Live Mint  

The United Kingdom has recently enacted the Corporate Insolvency and Governance Act 2020. The CIGA has introduced important reforms to the UK insolvency law, including provisions such as a ‘free-standing’ moratorium and a new ‘restructuring plan’ regime, with ‘cross-class cram down’. The second reform introduced by CIGA is the provisions for “Arrangements and Reconstructions for Companies in Financial Difficulty”, or …

IBBI Amends Regulations Governing Corporate Insolvency Resolution Process
7 years, 1 month ago

IBBI Amends Regulations Governing Corporate Insolvency Resolution Process

Live Law  

The article outlines the amendments made to the Insolvency and Bankruptcy Board of India (IBBI) regulations governing the corporate insolvency resolution process. These amendments aim to ensure that the resolution plan of the debtor company leads to a credible resolution plan that maximizes the value of assets of the corporate debtor.

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