IBC Rules

MCA's proposal to explore funding for PUFE proceedings could bring private capital into recovery efforts, but experts flag regulatory gaps, enforcement delays and risks to creditor interests

Today's BS Opinion examines the NEET-UG paper leak, the delayed AI171 crash report, creditor rights under the IBC, urban safety failures and a global history of caste

The amended IBC Bill requires the Committee of Creditors to record reasons for selecting resolution applicants, while introducing timelines for NCLAT and faster approval of plans

IBBI removes sale of company as going concern in liquidation; now only asset sales allowed, shifting focus strictly to terminal liquidation process

While many of the proposed amendments to the IBC, such as cross-border and group insolvency, will make the resolution process smoother, certain issues such as limited judicial capacity could weaken

Public laws aim to keep the crime proceeds beyond the reach of criminals while punishing the criminals. Although these proceeds were never the state's property, state benefits from their confiscation

Insolvency and Bankruptcy Board of India Executive Director Jithesh John observed that there was a noticeable improvement in credit discipline with 30,310 cases settled prior to admission

Ruling that such moratorium doesn't shield anyone from paying regulatory dues is a blow to unscrupulous businesses, they say

Most of the JSW group businesses are closely linked to each other, particularly to steel business. Among its risk factors, JSW Cement's documents noted its dependence on JSW Steel and its subsidiary

The committee also noted that not all scenarios under the IBC are fit for resolution through mediation. For instance, issues such as avoidance transactions are excluded

Till financial year 2022-23, 1,562 companies initiated voluntary liquidation, of which final reports were submitted in 1,039 cases and 17 of these were withdrawn, according to the IBBI data

The admission bench will admit/reject the application within 14 days of receiving it

Kaul also questioned which resolution applicant would be interested in the Corporate Debtor if it's not revived?

The Corporate Insolvency Resolution Process (CIRP) was initiated against Future Retail by its lender Bank of India (BOI) following loan defaults

The Go First lenders are seeking to recover around 25-30% or Rs 1,600 crore-Rs 1,900 crore of their exposure to the airline

MCA finalising draft guidelines to reduce delays at tribunal

An appeal has been filed before the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT order to initiate insolvency proceedings against Coffee Day Global Ltd (CDGL), which owns and operates the popular chain Cafe Coffee Day. Malavika Hegde, the suspended Director of CDGL, has approached the Chennai bench of NCLAT against the National Company Law Tribunal (NCLT) order to initiate Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global. The application, seeking a stay on the NCLT order, was listed for hearing before a NCLAT bench comprising Justice Rakesh Kumar Jain and Shreesha Merla on Friday. Earlier on July 20, the Bengaluru bench of the NCLT passed an order over a plea filed by IndusInd Bank, a financial creditor of the company, claiming dues of Rs 94 crore. The NCLT had also appointed Shailendra Ajmera as the interim resolution professional after suspending the board. The order has been challenged by Malavika Hegde, a director on the suspende

Increasingly, firms are now outsourcing many of these services and using the company employees instead of getting outsiders

The creditors and debtors will be allowed to reach an informal agreement to resolve the bankruptcy case and later approach the NCLT to admit cases

It is surprising as the lenders mostly lend loans keeping in mind the margin and the promotor's contribution