Page 15 - Insolvency And Bankruptcy Code

NCLT admits Rasna to insolvency on a Rs 71 lakh claim by logistics firm

The case was referred to mediation. During the mediation process, Bharat Carrier did not appear before the mediator and, hence, mediation failed, Rasna said

Average resolution time under IBC touches 3-yr high in June quarter: Report

The average time taken for resolution of stressed assets under the insolvency law reached a three-year high in the June quarter, according to a report. The longest delay was 643 days for the Financial Creditors (FCs) in the first quarter of this fiscal, as per the report by India Ratings based on an analysis of official data. The timeline for completion of resolution under the Insolvency and Bankruptcy Code (IBC), which was established in 2016, is 270 days, and can be extended subject to certain conditions. A total of 45 per cent of the cases under the IBC have ended in liquidation, India Ratings said on the basis of an analysis of data released by the Insolvency and Bankruptcy Board of India (IBBI) for the June quarter. "The average time taken for a Corporate Insolvency Resolution Process (CIRP) yielding through resolution or liquidation is at a three-year high for all stakeholders," it said. The realisation for FCs and Corporate Debtors (CDs) has marginally improved in the first

Questioning priority: Govt dues in IBC

Courts must safeguard the basic structure of the Insolvency and Bankruptcy Code

Insolvency code a crucial milestone in economic reforms: PM Modi

Stressing that the Insolvency and Bankruptcy Code, implemented in 2016, is a crucial milestone in the economic reforms, Prime Minister Narendra Modi on Saturday said that India, which used to be counted among the "Fragile Five" economies, is now being considered a bright spot in the global economy. The Prime Minister took note of the seminar, titled, 'Rejuvenation of Economy under Insolvency Laws' being organised by Insolvency & Professionals Council of India. In a signed message to Dr. Adish C Aggarwala, President of the International Council of Jurists, London, for the seminar, to be held in New Delhi on August 27, PM Modi acknowledged the need to make the insolvency regime "even better".Taking note of the initiative, Prime Minister Narendra Modi, added "It is particularly heartening to note that this seminar is being attended by many legal luminaries, domain experts and other stakeholders".The Prime Minister said he was sure that the deliberations at the seminar "will prove ..

Experts suggest changes in insolvency law to revive stalled realty projects

Changes in the insolvency law and formulating a scheme offering subsidised interest rates are among the several measures suggested by an expert panel to the Centre for reviving stalled real estate projects in the country. The 14-member panel led by former NITI Aayog chief Amitabh Kant presented the committee's report to Union Housing and Urban Affairs Minister Hardeep Singh Puri on Monday. The Report of the Committee to examine the issues related to Legacy Stalled Real Estate Projects said to encourage financial institutions to fund stalled projects, a scheme offering subsidised interest rates, similar to MSME, is recommended. "Such a scheme would reduce perceived risk, stimulate financial support and lead projects to completion. "Additionally, the Central Government may consider a guarantee fund similar to MSME for such finances. The MoHUA (Ministry of Housing and Urban Affairs) will prepare a detailed scheme and send it to the Ministry of Finance, in this regard," the report ...

NCLAT reserves order on Jalan-Kalrock Consortium's plea in Jet Airways case

The National Company Law Appellate Tribunal (NCLAT) on Monday reserved its order on Jalan-Kalrock Consortium's plea seeking more time to make payments to the lenders of the bankrupt Jet Airways. The consortium had emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process. The consortium is to pay Rs 350 crore to the lenders by August 31 but has sought an extension for making the payment. A three-member NCLAT bench said it will pass the order on next Monday and has granted three days' time to the parties to file their written submissions. "Heard learned counsel for the parties... orders on August 28, 2023. Parties are at liberty to file their short notes of submission of not more than three pages within three days," the appellate tribunal said. The bench would also decide the consortium's plea to consider a performance bank guarantee of Rs 150 crore as part of the payment of Rs 350 crore. The consortium h

Corporate affairs ministry assessing need to ramp up bench strength of NCLT

While industry stakeholders are calling for dedicated benches to handle insolvency matters, the government is reportedly not in favour of this proposal

The death of a defaulter

There are a few lessons to be learnt from art director Nitin Desai's suicide

Centre pushes for faster admission of corporate insolvency cases at NCLT

MCA finalising draft guidelines to reduce delays at tribunal

NCLAT stays insolvency of Coffee Day Global till next hearing on Sep 20

In a relief to Coffee Day Global Ltd (CDGL), which owns and operates popular Cafe Coffee Day chain, the National Company Law Appellate Tribunal (NCLAT) on Friday stayed an order of NCLT that directed initiation of insolvency proceedings against the company. Passing an interim order, a two-member tribunal of the Chennai bench of the appellate tribunal, issued notices to the Interim Resolution professional and its financial creditor IndusInd Bank and stayed the operations of the order passed by the Bengaluru Bench of the National Company Law Tribunal (NCLT). The NCLAT said it has "found that there are arguable points involved in this appeal, therefore, we issue a formal notice to the Respondents who are already on caveat, enabling it to file its reply." It has directed IRP and IndusInd Bank to file a reply within two weeks up to August 25, 2023, and a rejoinder, if any, be filed by CDGL within two weeks and directed to list the matter for hearing on September 20, 2023. "In the ...

SpiceJet insolvency plea maintainable, engine lessor WLFC tells NCLT

WLFC's submission came in response to Spicejet's challenge to the maintainability of WLFC's petition to initiate insolvency proceedings against the airline

Indian CAs mull India-Singapore platform for insolvency resolution

Indian Chartered Accountants have initiated a strategy to build best practices based on global standards for managing insolvencies, bankruptcies and dispute resolution following their interactions with Singapore-based professionals with an international network. During a two-day convention held here last week, chartered accountants, financial experts, and legal and corporate affairs professionals from India and Singapore exchanged ideas on managing issues related to dispute resolutions, global debt, insolvency and funding. "Our interactions during the event, attended by over 300 professionals, have set a pace for studies and collaborations through sharing of knowledge with Singapore-based professionals who are already managing business-related disputes and insolvency issues of multinational corporations across the globe," Gyan Chandra Misra, an insolvency professional and a member of the Institute of Chartered Accountants of India (ICAI), told PTI over the weekend. "We are going bac

Lessors have applied for deregistration of 54 Go First planes: Govt

Lessors have sought deregistration of 54 aircraft of Go First and aviation regulator DGCA is closely monitoring the situation since the airline announced cancellation of flights in May, the government said on Monday. Cash-strapped budget carrier Go First stopped flying on May 3 and is undergoing a voluntary insolvency resolution process. In a written reply to Rajya Sabha, Minister of State for Civil Aviation V K Singh said the Directorate General of Civil Aviation (DGCA) has received applications from lessors for deregistration of a total number of 54 aircraft leased to Go First. "Processing of the applications by DGCA is subject to the outcome of the cases before National Company Law Tribunal, Delhi and the hon'ble High Court of Delhi," he said. The minister also said the regulator has been closely monitoring the situation since Go First on May 2 announced cancellation of their flights and their application for insolvency filed under the Insolvency and Bankruptcy Code 2016 ...

NCLT extends deadline for completion of Future Retail insolvency to Aug 17

The National Company Law Tribunal (NCLT) has extended the deadline for completion of insolvency proceedings of debt-ridden Future Retail Ltd (FRL) to August 17, 2023. The Mumbai bench has allowed the plea of FRL to exclude 33 days from the corporate insolvency resolution process (CIRP), the company informed in a regulatory filing. "In furtherance of the above, the NCLT on July 17, 2023, heard the application and granted the said exclusion of 33 days' from CIRP of FRL," said FRL. It further added: "Consequently, the last date for completion of CIRP of FRL is August 17, 2023." According to FRL, this is based on an oral pronouncement by NCLT bench and a written order is awaited. Earlier in April, the NCLT bench had granted FRL an extension of 90 days till July 15, 2023 for concluding the CIRP. The Insolvency & Bankruptcy Code (IBC) mandates to complete CIRP within 330 days, which includes time taken during litigations. The CIRP was initiated against FRL by NCLT on July 20, 2022, ..

NCLAT stays insolvency proceedings against Container Corporation of India

The National Company Law Appellate Tribunal (NCLAT) has stayed the insolvency proceedings initiated against Container Corporation of India. On July 12, the New Delhi-based Principal bench of the National Company Law Tribunal (NCLT) had admitted the petition filed by Roadwings International, an operational creditor of the public sector enterprise, and ordered to initiate Corporate Insolvency Resolution Proceedings (CIRP). The order was challenged by the Container Corporation of India Ltd (CONCOR) before the appellate tribunal, which passed an order on July 14 to stay the NCLT's decision. The appellate tribunal also issued notices to the operational creditor Roadwings International and the interim resolution professional (IRP), which was accepted by their counsel present in the hearing. NCLAT granted one week time to file a reply to the operational creditor and rejoinder by CONCOR, if any, to be filed within two weeks thereafter and directed to list this appeal on September 4, 2023 f

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

Wadia Group in talks with investors to jointly bid for Go First: Report

The group wants to hedge its bets in the aviation sector and thus wants to partner with a financial investor while holding a majority stake

Go Airlines invites Expression of Interest for possible sale of carrier

The last date for receipt of interest for the airline is set for Aug. 9, according to a advertisement

SC issues notice to Centre over provisions of insolvency & bankruptcy code

The Supreme Court on Monday agreed to hear a batch of petitions challenging various provisions of the Insolvency and Bankruptcy Code (IBC) over claims that they are violative of fundamental rights like the right to equality of those against whom insolvency proceedings have been initiated. A bench comprising Chief Justice D Y Chandrachud and justices P S Narasimha and Manoj Misra issued notices to the Centre and others on as many as three petitions and ordered the pleas to be tagged with a pending petition on the issue. One of the petitions, which was taken up for hearing on Monday, was filed by R Shah, through advocate Anne Mathew, challenging the constitutional validity of sections 95(1), 96(1), 97(5), 99(1), 99(2), 99(4), 99(5), 99(6) and 100 of the Code. These provisions deal with the various stages of insolvency proceedings against a defaulting firm or individuals. The Impugned Provisions are inherently violative of the principle of natural justice and strike at the root of th

DGCA to conduct special audit of crisis-hit Go First facilities on July 4-6

Aviation watchdog DGCA will conduct a special audit of grounded airline Go First's facilities in the national capital and Mumbai from July 4 to 6 before approving the revival plan for the resumption of flights, according to a senior official. Cash-strapped Go First stopped flying on May 3 and is undergoing a voluntary insolvency resolution process. The senior official at DGCA on Friday said that after a preliminary review of the resumption plan submitted by the Resolution Professional (RP) for Go First on June 28, the regulator has planned to conduct a special audit. The audit of the facilities of the airline in Delhi and Mumbai will be conducted from July 4 to 6. "The special audit to be conducted from July 4 to 6 shall be focused on the safety-related aspects and continued compliance of the requirements to hold an Air Operator Certificate, as well as on physical verification of the arrangements made for the resumption of flight operations," the official said.