Insolvency And Bankruptcy Code

The tribunal approved plans worth over ₹11,071 crore in July-September, taking first-half approvals to 185, despite member vacancies and infrastructure constraints.

IBBI chairperson Jayanti Prasad flagged delays, ethics and realisations, while NCLT President Anupinder Singh Grewal cited vacancies and sought a higher filing threshold.

Indian Bank argues creditors should be able to reconsider an approved plan when circumstances change; resolution applicant says withdrawal is barred under IBC

The IBC requires a wider pool of investors willing to price distress

The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notices to creditors on a plea filed by Essel Group Chairman Subhash Chandra and scheduled the matter for hearing on October 29 and 30. Chandra had challenged before the appellate tribunal an order passed on September 1 by a five-member larger bench of the National Company Law Tribunal (NCLT), which had stayed the order of a third tie-breaker judge in his personal insolvency matter and restrained him from alienating his assets. The NCLAT has directed the creditors, who opposed the maintainability of Chandra's petition, among others, to file their reply within a week. A three-member bench of NCLAT also granted a week's time to Subhash Chandra to file a rejoinder to the creditors' reply. "Let the notice be issued... will file the reply (over maintainability and stay) within a week," said the bench comprising Officiating Chairperson Justice (Retd.) Yogesh Khanna and Technical Members Barun Mitra and Ajai Das ...

Deadline for filing personal guarantor insolvency forms extended to December 31; penalties for delays to apply thereafter

The Subhash Chandra episode doesn't show that the Insolvency and Bankruptcy Code (IBC) has failed - but that there's a gap, when it comes to voting, which can be used by any promoter

The IBC's long wait is driving creditors elsewhere

Regulator IBBI has proposed changes to the norms governing the insolvency resolution process for personal guarantors to corporate debtors, including the exclusion of related parties of the guarantor from voting on the repayment plan. Besides, the watchdog plans to make valuation of a personal guarantor's assets mandatory during the resolution process, as well as put in place the framework for recording creditors' deliberations on the repayment plan. In the proposed amendments in the rules to strengthen safeguards in the insolvency resolution process for personal guarantors to the corporate debtors, IBBI has also called for identification and reporting of avoidance transactions (preferential, undervalued, fraudulent, and extortionate credit transactions) in the insolvency resolution process. The proposals come against the backdrop of the insolvency case involving Essel Group chairman Subhash Chandra, wherein under a settlement plan it was proposed that creditors could recover just ..

IBBI directs Insolvency Professionals to conduct due diligence and report misuse of the IBC framework following a disciplinary crackdown on non-compliant administrators

Beyond the face value of the promise, recovery, incentives and the counterfactual matter

Tribunal says EY's fee arrangement and its enforceability require examination beyond Section 9 proceedings; clarifies it made no finding of professional misconduct

A Parliamentary panel has suggested establishing dedicated benches or verticals for insolvency cases at the National Company Law Tribunal (NCLT) to expedite disposal of such matters as well as ensure that the tribunal gives equal attention for cases under the companies law. Apart from the principal bench and the New Delhi bench, NCLT has benches in Allahabad, Ahmedabad, Bengaluru, Chandigarh, Chennai, Cuttack, Hyderabad, Indore, Kolkata, Kochi, and Mumbai. The recommendations are part of a report prepared by the Department-Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice. The report on 'Review of Functioning of Tribunal System in the Country' was tabled in Parliament earlier this month. The panel said steadily expanding insolvency jurisdiction of the tribunal should not dilute its equally important responsibilities under the Companies Act, 2013, including matters relating to mergers and amalgamations, corporate governance, and protection of

The Insolvency Appellate Tribunal NCLAT has affirmed the "clean slate principle" under the Insolvency and Bankruptcy Code (IBC), which bars any attempt to reestablish pre-resolution shareholders' rights, and rejected the claims of a shareholder of Sintex Industries. A two-member NCLAT bench dismissed the appeal by a Kerala-based investor seeking around Rs 110 crore in compensation for 1,35,000 equity shares of Sintex Industries Ltd (SIL) that were extinguished under the company's insolvency resolution plan. The appellate tribunal ruled that shareholders, whose equity was extinguished under the company's insolvency resolution plan, cannot revive their rights through proceedings under the Companies Act after the bids have been approved and the resolution plan has attained finality with a new ownership. The National Company Law Appellate Tribunal (NCLAT) said Section 238 of the Insolvency & Bankruptcy Code (IBC) gives it primacy over all other laws, including the Companies Act, 2013,

However, the dues recouped still remain minimal

Subhash Chandra's repayment plan was backed by creditors holding 80.81 per cent of voting value, despite objections from several banks and institutional lenders

NCLT has approved Subhash Chandra's ₹6.5 crore repayment plan against ₹22,006.57 crore claims; the plan was backed by creditors holding 80.81 per cent of the voting share

Mumbai bench holds Rs 20 crore paid by Pen India towards film release as financial debt under IBC, imposes moratorium and appoints interim resolution professional

The MCA will study third-party litigation funding for PUFE transactions as funds worth over Rs 4.38 lakh crore remain locked in avoidance proceedings under the insolvency regime

The tribunal expressed strong displeasure over the timing of the settlement after extensive hearings, saying considerable judicial time had already been spent on the petitions