Page 7 - Ibc

Govt may clarify prospective clause of IBC exemption for aviation

The High Court has asked the government for its response to a plea by a Gofirst lessor

Insolvency & Bankruptcy Code cannot be used as tool for recovery: NCLT

Insolvency & Bankruptcy Code (IBC) cannot be used as a "tool for recovery", the NCLT observed on Tuesday while dismissing a plea by two unit buyers of a commercial complex. The Principal Bench of the National Company Law Tribunal (NCLT) was hearing the plea for initiating insolvency against Orris Infrastructure over an alleged default of Rs 3.60 lakh. The NCLT bench observed that the purchaser of the Office space/Retail Unit has already received full and final payment from Orris Infrastructure in lieu of the assured returns towards the allotted unit, as per the agreement. The amount has been paid in excess of the default amount and counsel for the applicant has also acknowledged the receipt of the demand draft from the realty firm, which was developing a commercial building complex, known as Floreal Tower, at Sector 83, Gurgaon (Haryana), said insolvency tribunal. "We are of the view that in the present case, the applicants are already having demands drafts of the amount exceeding

IBC not recovery mechanism; dismisses plea against United Telecoms: NCLAT

The Insolvency & Bankruptcy Code is "not a recovery mechanism", observed the National Company Law Appellate Tribunal, while dismissing a plea against United Telecoms Ltd filed by one of its operational creditors. This is the second such observation from the Chennai bench of the insolvency appellate tribunal this month, after declining to entertain the petition from operational creditors. Earlier, it had refused to entertain an insolvency petition against Wipro Ltd after observing that the bankruptcy law cannot be used as a means to recover debt against solvent companies. Again, while rejecting a plea against United Telecoms last week, a two-member bench comprising justices M Venugopal and Shreesha Merla said: "Time and again, the apex court in a catena of judgments held that the IBC is not a 'recovery mechanism'. The appellate tribunal upheld the order by the Bengaluru bench of the National Company Law Tribunal (NCLT), which had dismissed the plea moved by an operational creditor .

Over 96,000 companies voluntarily wound up operations in last five years

From April 1, 2018 to March 31, 2023, as many as 96,261 companies exited voluntarily, invoking a section in the Companies Act

Unsecured lenders' dues to be prioritised over govt's: Supreme Court

IBC will override the provisions of the Electricity Act, 2003, says bench

As business bankruptcies surge around the world, next wave could be bigger

Large defaults add to the risk of a vicious cycle of suppliers not being paid, workers losing their jobs, banks further tightening lending criteria and then more companies going bust

Battery maker IBC mulling ₹8,000 cr investment in Karnataka, details here

With a significant investment of approximately Rs 8,000 crore, the company intends to establish a non-captive gigafactory. Land, machinery, plant, machinery and building will be the focus of the inves

MCA considering easing moratorium rules in IBC for certain sectors

Section 14 of the IBC declares a moratorium on proceedings, transfer or disposal of any of the assets of the company from the date of commencement of its insolvency

Future Enterprises invites expression of interest for assets across India

The last date of receipt of interest is set at June 25 and the provisional list will be out on July 5. The last date of submissions for objections of the provisional list is July 10

IBBI proposes changes to voting on bids for bankrupt companies under IBC

IBBI has also proposed to increase the fee of the AR to be commensurate with the increased duties to double the current levels

Explained: Why IBC is less bankable for the resolution professionals

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

Congress flags low debt recovery under Insolvency and Bankruptcy Code

The Congress on Friday attacked the government over the low debt recovery under the Insolvency and Bankruptcy Code and asked whether it was a mechanism to rescue stressed firms or another tool for organised loot". The Opposition party also asked whether the Insolvency and Bankruptcy Code (IBC) was aimed at helping cronies for creating monopolies by transferring businesses at throwaway prices. Addressing a press conference at the AICC headquarters here, Congress spokesperson Gourav Vallabh said the IBC of 2016 was billed as a game changer and one of the big-ticket economic reforms by the Modi government but the reality is that it has turned out to be far worse than its predecessor the Sick Industrial Companies Act (SICA) of 1985, and its Board for Industrial and Financial Reconstruction (BIFR). He said that at a time when people are struggling to make ends meet, the total recovery of debt under IBC is at only 17.6 per cent of the admitted claims, resulting in a loss of 82.4 per cent

Govt considering registration of flats even if developers go bankrupt

If this move sees daylight, it is expected to relieve thousands of homebuyers living with the scary thought of all their money going down the drain if in case their developer goes bankrupt

HC cannot interfere with resolution process of Go First: IRP tells court

Senior Advocate Harish Salve, appearing for the IRP, told the court that a writ court should not interfere in the resolution process after the insolvency application has been accepted by the Tribunal

Number of cases under IBC gone up by 24% in Q4FY23, says CARE Ratings

Only 10per cent% have ended in approval of resolution plans, while 31 per cent remain in the resolution process vs. 35 per cent as of the end of March 2022

Resolution realities

Go First's complexity will be a test case

IIIPI forms committee to recommend measures for growth of IBC ecosystem

The Indian Institute of Insolvency Professionals of ICAI (IIIPI) has constituted a committee to recommend measures to prepare the IBC ecosystem for the next phase of growth. "After over six years since inception of IBC, there is a need to consider futuristic challenges and recommend to IBBI and other authorities, changes required in the ecosystem and for preparing IIIPI and insolvency professionals to support these," IIIPI Chairman, Ashok Haldai said. IIIPI has constituted a board-level committee of its directors to recommend measures for preparing the IBC ecosystem for the next phase of growth by envisioning future changes and imperative requirements, according to a release on Tuesday. Haldai welcomed IBBI's initiative to seek public comments on changes needed in regulations under IBC 2016. IIIPI, promoted by the Institute of Chartered Accountants of India (ICAI), is the largest Insolvency Professional Agency (IPA) and frontline regulator under the Insolvency and Bankruptcy Code .

Centre to come up with creditor-led insolvency resolution framework: Report

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

Home buyers likely to get some relief from insolvency proceedings

The move is intended to reassure home buyers while also providing a tailored debt resolution regime for the real estate sector

Crowdsourcing ideas: IBBI seeks public views on IBC regulations till date

Stakeholders asked to share comments on all regulations by December 31