Category: Bankruptcy and insolvency
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Excel Engineering & Ors. v. Vivek
Muralidhar DabhadeDecided on 16th November 2022 | NCLAT Principal Bench, New Delhi FACTS The Appellants contend that the total aggregate amount of the ‘Operational Debt’ from the Operational Creditors (OC) is 32.78% of the total debt. However, no notices of the meeting of the Committee of Creditors (“CoC”) were given to the Appellants, denying them an…
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Trans Sea Transport B.V. v. Lords Polymer (India) Private Limited
Decided on 28October 2022 | National Company Law Tribunal, Kolkata Facts of the case A company petition was filed by Trans Sea Transport B.V. under section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC“) for initiation of a Corporate Insolvency Resolution Process (“CIRP“) against Lords Polymer [India] Private Limited (“Corporate Debtor/CD“) before National Company…
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Decoding 5th report of insolvency law committee – may 2022
Mandating reliance on Information Utility for certain Financial Creditors Time being the essence of the Corporate Insolvency Resolution Process (“CIRP“), recommendations were made by the Insolvency Law Committee (“Committee“) constituted by the Ministry of Corporate Affairs (“MCA“) for speedy disposal of cases by the Hon’ble National Company Law Tribunal (“NCLT“) . One such recommendation involved…
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Climate change and business solvency risk: An overview
Climate change has been at the forefront of most discussions over the past 5 years due to its impact on the environment and on people. However, we commonly overlook the effects of this change on businesses, their finances and solvency. The above entails the “physical risks” caused by climate change on the financial stability of…
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Vidarbha Industries Power Ltd. vs Axis Bank Limited
Decided on 12 July 2022 | Supreme Court of India In Vidarbha Industries Power Ltd. vs Axis Bank Limited, the Supreme Court (“the Court”) observed that it is not mandatory for the Adjudicating Authority (“NCLT“) to admit an application to initiate Corporate Insolvency Resolution Process (“CIRP“) even if a debt existed and the Corporate Debtor…
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How India’s new draft law will impact cross-border insolvencies
In the recent Union Budget Session of 2022- 2023, an announcement was made to extend the jurisdiction of India’s Insolvency and Bankruptcy Code, 2016 (IBC) to cross-border insolvency. The current Draft Part Z is based on the UNCITRAL Model Law, developed by the United Nations Commission on International Trade Law. The UNCITRAL Model Law is…
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Vijay Kumar Ghai v. Pritpal Singh Babbar1
Decided on 4th July 2022 | High Court of Punjab and Haryana In Vijay Kumar Ghai v. Pritpal Singh Babbar, the Hon’ble Punjab and Haryana High Court (“the Court“) held that proceedings initiated under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act“), against a Personal Guarantor (“PG“), shall remain stayed by the virtue…
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Vishnu Oil Mill Pvt. Ltd. v. Union of India
Decided on 25 July 2022 | Rajasthan High Court In Vishnu Oil Mill Pvt. Ltd. vs Union of India, the High Court of Rajasthan (“the Court“) observed that the provision in question i.e., Section 7 of the Insolvency and Bankruptcy Code (“IBC“) as amended by Gazette Notification released on 05.06.2020, allows for no other interpretation…
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Insolvency Resolution Process Against Personal Guarantors
Shreyas Jayasimha and Tushar Tyagi The Ministry of Corporate Affairs (“MCA“) issued a notification dated 15 November 2019 (“Notification“) that give effect to provisions for conducting the insolvency resolution process against personal guarantors under the Insolvency and Bankruptcy Code, 2016 (“IBCode“) w.e.f. 01 December 2019 (“Commencement Date“).[1] [1] Notification of provisions under the Insolvency and…