Category: Bankruptcy and insolvency
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Case update: John Maxwell Morgan v. McMillan Investment Holdings PTY. LTD.
The key legal principles arising from this case revolve around the interpretation and application of specific provisions within Australian corporate and insolvency law. The case addresses the issue of when companies in liquidation can be considered part of a joint business scheme or undertaking for the purpose of pooling their assets and liabilities.
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How artificial intelligence can assist insolvency practitioners
Managing the intricacies of insolvency and bankruptcy cases in a densely populated and economically diverse country like India continues to pose formidable challenges. To effectively navigate these complexities and streamline the process, the use of Artificial Intelligence (“AI”) has emerged as a promising solution.
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Recent developments in Indian insolvency law
Clarification on Ineligibility of Resolution Applicants In a significant ruling in the case of M.K. Rajagopalan v. Dr. Periasamy Palani Gounder & Anr., the Supreme Court has clarified that a resolution applicant cannot be presumed ineligible under Section 164(2)(b) of the Companies Act, 2013, unless a competent authority explicitly declares their disqualification as a director.…
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Case update: Paschimanchal Vidyut Vitran Nigam Limited v. Raman Ispat Private Limited & Others
In a recent case the Supreme Court of India reversed its previous decision of September 2022 in the matter of State Tax Officer v. Rainbow Papers. In this “Rainbow judgment”, it was established that the State held the status of a ‘secured creditor’ as defined by the Insolvency and Bankruptcy Code.
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India looks to further reforms of the bankruptcy code
When the Insolvency and Bankruptcy Code (“the Code”) was introduced in 2016, it highlighted the need to create a credit-friendly culture, an area where previous legislation had fallen short. But while the Code has proven its efficacy as a dynamic legal framework, there remain areas of concern over its application. Below we review these and…
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Why aircraft lessors need greater protection under Indian law
The aviation industry has witnessed its fair share of turbulence over the years, with several major airlines succumbing to financial crises and filing for bankruptcy. In a recent development
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How to recover foreign award debts in India through insolvency proceedings
In recent years, India has embraced a pro-arbitration approach, making international arbitration the preferred method for resolving disputes between Indian corporations and global entities.
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Case update: Sanket Kumar Agarwal & Anr. V. APG Logistics Private Limited
In a significant legal development, the Supreme Court of India, in Sanket Kumar Agarwal v. APG Logistics Private Limited, has provided essential clarifications
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Latest developments in insolvency and bankruptcy in India
Go First Airlines Go First Airlines files for insolvency: On May 4, 2023, the NCLT Delhi reserves order on a request for an interim moratorium. On May 2, 2023, Nusli Wadia promoter of Go Air approached the Hon’ble National Company Law Tribunal (NCLT) and file petition seeking insolvency. A few years earlier, Jeh Wadia had been ousted because the airline was consistently losing money.…
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Moser Baer Karamchari Union Thr. President Mahesh Chand Sharma v. Union of India and Ors.
In Moser Baer Karamchari Union Thr. President Mahesh Chand Sharma v. Union of India and Ors., the Supreme Court of India has upheld the Companies Act 2013 provision that overrides payment of workers’ dues during Liquidation process under the Insolvency and Bankruptcy Code, 2016.