Page 16 - Insolvency And Bankruptcy Code

NCLAT adjourns hearing of Jet Airways' insolvency case to November 9

Insolvency appellate tribunal NCLAT on Wednesday adjourned the hearing on the Jet Airways matter to November 9 over the issue of transfer of ownership of the grounded air carrier to the Jalan Kalrock Consortium (JKC). When the matter was called for hearing on Wednesday, Additional Solicitor General N Venkataraman informed the two-member bench that the identical matter is also listed before the Supreme Court for hearing next week on November 7. Venkataraman, who is representing lenders including SBI and other banks in this matter, requested the bench to adjourn and list it for hearing after that, which was accepted by the bench headed by Chairperson Justice Ashok Bhushan. Though, senior advocate Krishnendu Dutta appearing for JKC, requested NCLAT to proceed and said the matter before the Supreme Court on November 7 had no direct connection with the matter before the appellate tribunal. Lenders of Jet Airways approached the Supreme Court last month over the NCLAT order granting more

High interest rates causing surge in company insolvencies in England

Official figures Tuesday showed the number of company insolvencies in England and Wales jumped 10% year-on-year to 6,208 in the third quarter

NCLAT dismisses plea to initiate insolvency proceedings against Inox Wind

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea to initiate insolvency proceedings against Inox Wind by an operational creditor of the company. A three-member bench of the insolvency appellate tribunal also upheld the orders of the Chandigarh Bench of the National Company Law Tribunal (NCLT), which on May 22, 2023, rejected the plea of GRI Towers India. While dismissing the plea, the NCLAT again said that the Insolvency & Bankruptcy Code (IBC) are "not proceedings for recovery of contractual dues". The bench said it was apparent from the facts of the present case the operational creditor has initiated proceedings for recovery of its contractual dues arising out of a contract between the parties. "Suit for recovery of dues was already filed by the Appellant, which was withdrawn by the Appellant," the NCLAT observed. GRI, which is in trade and service relating to the business of providing equipment and manpower, had approached the NCLT, alleging a default

Realty books 19% of total realisation via insolvency proceedings: Report

Real estate accounts for nearly 19 per cent of the total realisation under insolvency proceedings, according to a report by Anarock and Khaitan & Co. Real estate consultant Anarock and law firm Khaitan & Co on Wednesday released a report 'Update on IBC (Insolvency and Bankruptcy Code) in Indian Real Estate'. "The real estate sector on a reported basis accounted for more than 50 per cent of the total realisations under IBC. However, subsequent to the release of data by IBBI, a large key case went sub-judice following the admission of an appeal before the NCLAT, resulting in the real estate sector accounting for 18.8 per cent of total realisations under IBC," Anarock said in a statement. Anarock's arm Anarock Capital MD and CEO Shobhit Agarwal said the total number of corporate insolvency resolution process (CIRP) cases filed has risen from an average of 208 per quarter in FY22 to an average of 313 in FY23. "FY24, however, has commenced on a weak note with 238 cases admitted ...

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

Jindal Power submits expression of interest for insolvent Go First

Go First's resolution professional invited EoIs for the carrier's sale in July. Sources have confirmed that JPL has filed an EoI for Go First in the National Company Law Tribunal (NCLT)

Grounded airline Go First gets expression of interest from Jindal Power

"Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank that has exposure to Go First

SpiceJet, aircraft lessor Celestial Aviation working towards settlement

Budget carrier SpiceJet and aircraft lessor Celestial Aviation are working towards settlement, which is in the advanced stage, insolvency tribunal NCLT was informed on Tuesday. During the proceedings, counsel appearing in the matter informed about the development and requested the National Company Law Tribunal (NCLT) to adjourn the matter, which was accepted. The development came during the hearing of a plea filed by Celestial Aviation Services Ltd, an operational creditor, to initiate insolvency proceedings against the airline. A two-member NCLT bench directed to list the matter on November 7 for the next hearing. According to some reports, Celestial Aviation Services Ltd is claiming a default of USD 29.9 million for nine aircraft. It is the fifth lessor, which had moved against SpiceJet. Some other lessors such as Willis Lease Finance, Aircastle and Wilmington have also moved pleas to initiate insolvency proceedings against SpiceJet before the NCLT. Earlier on September 5, NCLT

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