Page 15 - Insolvency And Bankruptcy Code

Corporate affairs ministry exempts aviation from IBC's moratorium clause

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

Govt changes insolvency rules to exclude leased aircraft from moratorium

Some provisions of the Indian Bankruptcy Code will not apply to transactions relating to aircraft, aircraft engines, airframes and helicopters, the notice showed

The real estate rollercoaster

From grappling with rising inventory, the market now has swung to the opposite extreme, but reasons for the euphoria are unclear

Future Retail CoC rejects Space Mantra bid, NCLT extends insolvency period

The lenders of Future Retail Ltd have rejected the bid submitted by Space Mantra for the debt-ridden firm, which is currently going through Corporate Insolvency Resolution Process (CIRP). The Resolution Plan submitted by Space Mantra for Future Retail Ltd (FRL), failed to get the required number of votes in the e-voting process of the Committee of creditors (CoC). It was put "for the consideration of the CoC on July 19, 2023... and pursuant to the decision taken by CoC through e-voting, concluded on 30th September 2023 at 9 PM (IST), the resolution plan submitted by Space Mantra Private Limited has not been approved by CoC", FRL said in a regulatory filing on Monday. It further added: "In view of the resolution plan not having been approved by the CoC, the next steps would be taken in accordance with the Insolvency & Bankruptcy Code 2016." Space Mantra was the single bidder for FRL. According to some media reports, Space Mantra had offered around Rs 550 crore, which was very close

300 IBC cases set to be resolved this year: Corporate affairs secretary

Creditors have recovered around Rs 3 trillion through the Insolvency and Bankruptcy Code (IBC), and the recoveries stood at more than Rs 51,000 crore last year

Resolutions under insolvency law likely to touch 300 this year: IBBI chief

The number of resolutions of stressed assets under the insolvency law is likely to touch 300 this year, IBBI Chairperson Ravi Mital said on Sunday and urged resolution professionals to speed up the cases. Creditors have recovered around Rs 3 lakh crore through the Insolvency and Bankruptcy Code (IBC) and the recoveries stood at more than Rs 51,000 crore last year, when the number of resolutions rose 80 per cent to 180, Mital said. He was speaking at an event to mark the seventh annual day of the Insolvency and Bankruptcy Board of India (IBBI) in the national capital. The IBBI is a key institution in implementing the IBC. Mital said the IBC is a factor in the reduction of non-performing assets and emphasised that the law is not a recovery mechanism but a resolution mechanism. Till August this year, 135 resolutions have happened and the number is likely to touch 300 by year-end, Mital said and asked resolution professionals to increase their speed for faster resolutions. Corporate

Insolvency and Bankruptcy Board clarifies calculation of liquidator's fees

IBBI also said that there was a gap in understanding in the market about what components of the liquidation cost are to be excluded to derive "other liquidation cost"

Following commercial wisdom will be game changer for resolving bad loans

Insolvency resolution should efficiently redeploy assets. Bankers must bring commercial acumen to negotiations, not bureaucratic rigidity

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 .

IBBI addresses CIRP delays, proposes reforms to streamline process

To address these concerns, the IBBI recently proposed four changes to CIRP regulations aimed at reducing delays, as outlined in a consultation paper

Future Retail's insolvency deadline extended again, deadline now Sept 15

The Mumbai bench had provided a 33-day extension to FRL's administrator to complete the proceedings of its insolvency process on July 19

Resolution professional questions timing of cos cancelling Go First leases

Engine lessors tell NCLT moratorium for airline doesn't apply; arguments to continue on Sept 22

Go First lenders likely to extend deadline seeking investor interest

The resolution professional for the company, which operated the Go First carrier, had in July invited investor interest on behalf of creditors after the airline filed for insolvency in May

IDBI Trusteeship files insolvency plea against Coffee Day Enterprises

IDBI Trusteeship Services has filed an insolvency petition with the NCLT's Bengaluru bench against Coffee Day Enterprises Ltd (CDEL), claiming dues of Rs 228.45 crore. The company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter, CDEL said in a regulatory filing on Friday. "An application has been filed against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules, 2019 by IDBI Trusteeship Services Limited before the National Company Law Tribunal, Bengaluru for alleged default of Rs 228.45 crore," said CDEL. Under Section 7 of the Insolvency and Bankruptcy Code (IBC), a financial creditor can get insolvency proceedings initiated against the corporate debtor concerned. Last month, the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) stayed the order of the NCLT to initiate insolvency proceedings against Coffee Day Global

NCLT directs to initiate insolvency proceedings against Imperia Structures

The National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against Delhi NCR-based realty firm Imperia Structures and has appointed an interim resolution professional. Admitting a joint plea filed by 28 unit holders of its Gurugram-based project 'Imperia Mindscape', the insolvency tribunal said after examining the records, it is clear that there is a debt and a subsequent default by the realty firm for an amount of Rs 36.79 crore as it could not provide assured returns as promised. "The petition establishes that the corporate debtor is in default of a debt due and payable and that the default is for an amount which is more than the minimum amount of pecuniary threshold stipulated under section 4 (1) of the Code. The instant petition... for initiating CIRP against Imperia Structures Limited, the corporate debtor, stands admitted and CIRP of Imperia Structures Limited is initiated," said NCLT. NCLT has also appointed Gaurav Katiyar as Interim Resolution .

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 ..