A Personal Guarantor's Pandemic: IBC Suspension And Its Repercussions

On 25 March 2020, in light of the COVID-19 pandemic currently plaguing the world, the Central Government, through the Ministry of Home Affairs, had to take the harsh step of imposing a nationwide lockdown, which has been supplemented by periodic extensions. As a result of the unprecedented impact of this measure on businesses, and to aid the plunging economic scenario in the country, a series of economic reforms have been sought to be implemented under the aegis of the finance minister...

NCLT Bengaluru To Conduct "E-Filing Training Programme" Today For Advocates & Other Stakeholders [Read Notification]

In an appreciable move, the Bengaluru Bench of the National Company Law Tribunal has decided to conduct an online training programme to make Advocates and other stake holders in the Tribunal familiar with its e-filing software. As the e-filing system is running successfully in some of the NCLT's benches, the principal Bench of NCLT at Delhi has decided to extend this benefit to all its benches. It has been intimated that the online Court system for e-filing will enable online filing of...

Impact of Covid-19 Outbreak On The Resolution Plans Submitted By The Successful Bidders

Nationwide lockdown announced by several governments including the Indian Government has adversely affected the business resulting in an extensive market interruptions and relapse of consumption. Lately, the Fitch Ratings has condensed India's GDP growth forecast from 5.1% to 2%, making it the dimmest growth rate over the past 30 years. Subsequently, businesses are facing Spartan monetary distress. Although at present it is very difficult to anticipate the full impact on the economy, it is...

NCLAT Sets aside NCLT Order To Add MCA As Party In All IBC Cases And Company Petitions [Read Order]

The National Company Law Appellate Tribunal (NCLAT) set aside an order of National Company Law Tribunal (NCLT) which mandated the impleadment of the Union Ministry of Corporate Affairs (MCA) as a party in all Insolvency and Bankruptcy Code (IBC) matters and Company petitions. NCLAT was of the view that the order was tantamount to the imposition of a new rule, which was beyond the powers of NCLT. Thus, allowing the Union Government's appeal, the Tribunal held that the said order was...

Filing Of Default Record Necessary For News Sec 7 IBC Filings : NCLT

The National Company Law Tribunal has directed filing of default record from Information utility along with new petitions under Section 7 of the Insolvency and Bankruptcy Code, 2016.The order issued in this regard said :"All concerned are directed to file default record from Information Utility alongwith the new petition being filed under Section 7 of Insolvency & Bankruptcy Code, 2016, positively".Click here to download OrderRead Order

IBC Amendment,2020: Constitutional Vires Of The Minimum Threshold On The Allottees

The Legislature of India enacted the Insolvency and Bankruptcy Code, 2016 ("the Code") for the speedy revival of companies and consolidation of laws relating to liquidation. The Code provided Financial Creditors and Operation Creditors a right to initiate the Corporate Insolvency Resolution Process ("the CIRP") against a Corporate Debtor, before the National Company Law Tribunal ("the Tribunal"). The evolution of the allottee(s) of a real estate project as Financial Creditors under the ...

IBC: Retrospective Application of Revised Threshold- An Alternate Perspective

INTRODUCTION 1.1In an apparent bid to avoid large-scale insolvencies, especially against the MSMEs, as a result of the financial stress caused by Covid-19 pandemic, the Central Government had, vide notification bearing no. SO 1205(E) dated March 24, 2020 ("Notification"), increased the threshold of the minimum amount of default for the purpose of maintainability of an application for initiation of corporate insolvency resolution process ("CIRP") under Insolvency and Bankruptcy...

NCLAT Directs NBCC To Implement Resolution Plan Pending Appeal in Jaypeee Infratech matter

While hearing an urgent petition during the extended lockdown period moved by the NBCC, the National Company Law Appellate Tribunal ('NCLAT') declined to stay the implementation of the modified resolution plan and directed the state - run NBCC to acquire the debt ridden Jaypee Infratech and complete over 20,000 pending flats, but said the direction was subject to its final order.Justice Bansi Lal Bhat, acting Chairperson and Justice Anant Bijay Singh, Member (Judicial) also directed Jaypee...

Liquidation Value vis a vis Dissenting Financial Creditors: Aftermath Of Maharashtra Seamless And Orchid Pharma

The Insolvency Bankruptcy Code, 2016 ("Code") has gone through a myriad of changes since its inception and introduction. Although it has been held by the Supreme Court in the case of Embassy Property Developments Pvt. Ltd. vs State of Karnataka, that the IBC is a complete Code by itself and in Innoventive Industries Ltd. vs ICICI Bank that the Code is a single Unified Umbrella, covering the entire gamut of law relating to insolvency resolution of corporate persons and others in a time...

Possibility Of Mediation In Corporate Insolvency

The book "The Richest Man in Babylon", written by George S. Clason, is a classic in terms of personal finance and wealth management. It was written in the year 1926 and lists a few principles for accumulation and building of wealth and methods to navigate oneself in a financial crisis. It is more or less a "back to the basics" book on finance. The book at one-point talks about how one needs to deal with cases where their debts are more than their income and about how to deal with times...

COVID19: NCLAT Extends Interim Orders, Excludes Lockdown Period u/s 12 Proceedings Of IBC To Mitigate Difficulties [Read Order]

The National Company Law Appellate Tribunal (NCLAT) has excluded the period of lockdown for the purposes of counting Resolution Process vis-à-vis section 12 of the Insolvency & Bankruptcy Code (IBC), 2016. Taking suo motu cognizance of the unprecedented situation which has arisen due to the spread of COVID19, bench comprising Justices Bansi Lal Bhat, Anant Bijay Singh & Ashok Kumar Mishra directed that any interim order/ stay order passed by this Appellate Tribunal in...

National Lockdown: ICABA Urges CJI To Extend Various Timelines Under Arbitrarion Act, IBC, NI Act, Etc. [Read Letter]

In view of the standstill brought with the imposition of a national lockdown, the Indian Commercial and Arbitration Bar Association has requested the Supreme Court to extend the timelines related to disposal of cases, as prescribed in various statues. The letter written by a Delhi based lawyer, Advocate Ankur Mahindro, points out that even though, by way of a general order in Re: Cognizance for Extension of Limitation, Suo Moto WP (C) No. 3/2020, the Supreme Court had extended the...