Page 11 - Insolvency And Bankruptcy Code

NCLT begins insolvency proceedings for Jaiprakash Associates on ICICI plea

The National Company Law Tribunal (NCLT) on Monday directed to initiate insolvency proceedings against debt-ridden Jaiprakash Associates Ltd, admitting the plea filed by private lender ICICI Bank. Jaiprakash Associates Ltd (JAL), which is the flagship firm of Jaypee Group, is mainly into construction, cement and hospitality businesses. JAL has sold many cement plants in the last few years to reduce its debt. A two-member bench at NCLT, Allahabad, comprising Members Praveen Gupta and Ashish Verma pronounced the order on Monday afternoon, said lawyers connected with the matter. The tribunal has also appointed an interim resolution professional (IRP) and directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against JAL, they said. The Allahabad bench of the tribunal has also dismissed the merger of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd. A detailed order is yet to be uploaded to the NCLT website. In September 2018, leading private

Lessor moves insolvency plea before NCLT against SpiceJet over $12 mn

Engine Lease Finance BV, an aircraft engine lessor of SpiceJet, has moved an insolvency plea before the NCLT against the debt-ridden air carrier over non-payment of over USD 12 million (around Rs 100 crore). Engine Lease Finance (ELF) has leased eight engines to SpiceJet. Along with interest and rental, ELF has claimed an amount of around USD 16 million. The matter was listed before a Delhi-based bench of the National Company Law Tribunal (NCLT) on Wednesday, which heard it briefly. Counsel appearing for SpiceJet sought time to respond to the petition filed by Engine Lease Finance. On this, the NCLT bench comprising members Mahendra Khandelwal and Sanjeev Ranjan directed SpiceJet to file its response to the petition. Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company. It entered into an agreement in 2017 with SpiceJet to lease engines. According to the petitioner, the low-budget carrier has defaulted on payments since Apr

GoAir temporarily loses slots and foreign bilateral rights amid insolvency

Bilateral air service agreements between airlines and countries allow them to operate international flights; slots for these flights are allocated by the DGCA and civil aviation ministry

Limited interest, low recoveries: Prepack insolvency scheme in slow lane

In 2021 when the country was reeling from the Covid-19 pandemic, the government promulgated an ordinance and amended the insolvency law to help MSMEs avoid bankruptcy

Vacuum for Indian MSMEs seeking growth finance: Nishu Malhotra, ADM Capital

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

How to make insolvency law solvent

IBC has served purpose by creating the fear of god among rogue promoters. It's time to plug the loopholes in the law and make the defaulters understand that the IBC isn't just all bark and no bite

NCLAT sets aside insolvency process against Dream 11 parent company

Section 10A deals with the suspension of initiation of insolvency process for any default arising on or after March 25, 2020, for a period of six months or extending to one year

Repeat offenders made up 40% of US corporate defaults in 2023: Moody's

These and other companies with a high level of debt struggled through an elevated interest rate and inflationary environment, said the report, which was released on Tuesday

After making insolvency process creditor-driven, can IBC address the delays

Experts point out that though the IBBI data reflects a steady rise in the total number of insolvencies admitted, the year-on-year increase does not show a consistent trend

Efforts on to develop cross-border insolvency framework, say experts

Efforts are going on to develop a cross-border insolvency framework with a cautious approach and such a framework should respect the laws of other countries without superseding Indian law, according to experts. Former NCLAT (National Company Law Appellate Tribunal) Chairperson S J Mukhopadhaya emphasised the importance of having a robust cross-border insolvency framework in the country. "We will have to respect the law of other countries, but it does not mean superseding our law. The dominance should be of our law in our jurisdiction," he was quoted as saying in a release. He was speaking at the conference on 'Cross-Border and Group Insolvency in India: Challenges and Opportunities' in the national capital on Saturday. The conference was organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) jointly with the Foreign, Commonwealth & Development Office-United Kingdom (UKFCDO), the Insolvency and Bankruptcy Board of India (IBBI) and the Institute of Chartered .

NCLAT stays insolvency proceedings against Deccan Charters till April 26

The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against Captain GR Gopinath's Deccan Charters till April 26, 2024, its next date of hearing. Earlier, the Bengaluru bench of the National Company Law Tribunal (NCLT) had directed initiation of Corporate Insolvency Resolution Process (CIRP), admitting a plea of financial creditor Krone Finstock claiming a default of around Rs 10 crore. The Chennai bench of NCLAT on a petition filed by Sanjay Saihgal, a director of the suspended board of Deccan Charters, on Wednesday directed Krone Finstock to file a reply within four days. A three-member bench of the appellate tribunal also directed the interim resolution professional (IRP) not to proceed any further till the next date of hearing i.e. April 26, 2024. Deccan Charters provides services such as aircraft maintenance, aviation training and charter services of helicopter and fixed-wing aircraft. The NCLT had also appointed an IRP for the company, which

NCLAT upholds insolvency case on Tulip Hotels over default of guarantees

The National Company Law Appellate Tribunal (NCLAT) has upheld the insolvency proceedings against Tulip Hotels, which had defaulted on Rs 450 crore corporate guarantees given for Cox & Kings and EzeeGo One Travel & Tours each. On May 16, 2023, the Mumbai bench of National Company Law Tribunal (NCLT) had directed initiation of a Corporate Insolvency Resolution Process (CIRP) against Tulip Hotels over a plea filed by Yes Bank, claiming a default of Rs 900 crore for two corporate guarantees issued by it. The order was challenged before appellate body NCLAT, which upheld the earlier order by NCLT, saying when a corporate debtor gives a guarantee for a loan transaction, the right of the financial creditor to initiate action against it gets trigger the moment the principal borrower commits a default. Tulip Hotels was a corporate guarantor for two loans disbursed by Yes Bank to Cox & Kings and EzeeGo One Travel and Tours Ltd. After they defaulted, the financial creditor Yes Bank .

Lenders to invite bids for Hiranmaye Energy in the next few weeks

BHEL had petitioned to halt the insolvency process of the project, citing its pending dues emerging from an arbitral award

Go First insolvency resolution gets a 60-day extension from NCLT

Go First filed for voluntary insolvency on May 2, 2023, under Section 10 of IBC, and on May 10, the NCLT admitted Go First's insolvency plea

Reliance Securities receives Sebi's approval for change in control

Reliance Securities has also received approvals from the NSE, BSE, MCX, and NCDEX for transferring shares owned by existing promoter Reliance Capital to Hinduja-led Aasia Enterprises

NCLT initiates insolvency proceeding against MEP Infrastructure Developers

The National Company Law Tribunal has initiated the corporate insolvency resolution process (CIRP) against MEP Infrastructure Developers Ltd on a plea filed by Bank of India and appointed an interim resolution professional to take control of the company. The Mumbai bench of the NCLT admitted the plea under the IBC filed by the public sector lender, claiming a default of Rs 127.86 crore. "The factum of the existence of financial debt and its default stands proven on record. It has also been established that the petition is within time. Considering the facts placed before us and the fact that the Corporate Debtor owes the Financial Debt in excess of Rs 1 crore, which is in default. "This bench is of the view that in such circumstances, it is imperative that the CIRP be initiated in the matter of the Corporate Debtor (MEP Infrastructure)," said a two-member NCLT bench in its 9-page order passed on March 28, 2024. The NCLT order further said there would be a moratorium under section 14

NCLAT scraps homebuyers' plea for insolvency against Ansal Hi-tech Township

The National Company Law Appellate Tribunal (NCLAT) on Monday set aside a plea seeking insolvency proceedings against Ansal Hi-tech Township Ltd filed by its homebuyers of a project in Greater Noida. The appellate tribunal has upheld the order passed by the Delhi-based bench of the National Company Law Tribunal (NCLT), which had in January 2023 set aside the plea of homebuyers, observing that the allottees belong to different projects and does not fulfil the required criteria to file an insolvency case. The project is located in Greater Noida, Uttar Pradesh. The NCLT's order was challenged before the NCLAT. The homebuyers argued that the agreement with the developer terms 'Sushant Megapolis' as one complete 'Project' and was signed much before RERA (Real Estate Regulation and Development Act) came into force. They further submitted that 1,500-acre project 'Sushant Megapolis' comprises plots, built-up plots, raw houses/flats/floors, high-rise apartments, under various allocated site

NCLAT dismisses BHEL's pleas against REC over Hiranmaye Energy insolvency

Insolvency appellate tribunal NCLAT on Monday set aside a BHEL petition seeking to halt REC from initiating insolvency proceedings against Hiranmaye Energy, formerly India Power Corp (Haldia). The NCLAT said it sees no reason to interfere in the order passed by the Kolkata bench of NCLT admitting REC's insolvency plea against Hiranmaye Energy, and said claims filed by BHEL against the debt-ridden thermal power company should be dealt with in accordance with the law. The National Company Law Tribunal (NCLT) on January 2, 2024, directed to initiate a Corporate Insolvency Resolution Process (CIRP) against Hiranmaye Energy, admitting the plea filed by REC, formerly known as Rural Electrification Corporation. Challenging this, BHEL moved the appellate tribunal NCLAT, where it filed two petitions. In the first plea, it challenged the admission of insolvency plea by the NCLT and also the order of January 5, 2024, in which PSU's intervention application filed by it was rejected. BHEL ...

IBBI amends resolution rules: Realty insolvency to be project-wise

Share of top 10 realty deals was 87% of total value of PE investments in first 9 months of FY24 (9MFY24)

IBBI amends norms to increase transparency in insolvency resolution process

Regulator IBBI has amended corporate insolvency resolution process norms, including making it compulsory to have separate accounts for each real estate project undergoing resolution and enabling the creditors' committee to constitute a monitoring panel to oversee implementation of the resolution plan. "With an aim to increase transparency and reduce disputes over valuation-related issues, the amendment provide for explaining the valuation methodology to the members of the CoC (Committee of Creditors) before the computation of estimates," as per the revised norms. The Insolvency and Bankruptcy Board of India (IBBI) also said that fair value may be made part of the information memorandum to foster informed participation in the process. The CoC will also have the freedom to decide not to share such information where such disclosure is not beneficial for the resolution. With respect to real estate projects, the regulator said the CoC can ask for separate resolution plans for each ...