Page 3 - Insolvency And Bankruptcy Code

CoC extends Jaiprakash Associates resolution plan deadline to 24 June

Following requests from prospective bidders, the Committee of Creditors for Jaiprakash Associates has extended the resolution plan submission deadline to 24 June 2025

Surety bonds' market faces multiple growth challenges despite govt push

The issuance of such bonds remains muted due to several challenges, such as collaboration between banks and insurance firms, data sharing, and regulatory parity, among others

Byju's co-founder moves NCLT to remove GLAS Trust from creditors' panel

Byju's co-founder Riju Ravindran has approached NCLT, alleging GLAS Trust falsely claimed creditor status and seeking its removal from the Committee of Creditors in the ongoing insolvency case

NCLAT suspends insolvency proceedings against Reliance Infrastructure

Reliance Infra says it has fully paid dues claimed by Dhursar Solar Power as NCLAT puts on hold NCLT's May 30 order initiating insolvency against the firm

Big relief to Reliance Infra as NCLAT stays insolvency proceedings

NCLAT suspends insolvency order by NCLT after Reliance Infra argues it has cleared ₹92.68 crore dues linked to Dhursar Solar Power; next hearing set for July 18

Parliamentary panel to review IBC and propose reforms for efficiency

The Centre is expected to table an amendment Bill in the monsoon session as a parliamentary panel examines the Code amid concerns flagged by the Supreme Court

Gensol, BluSmart face insolvency heat as NCLT issues fresh notices

Last week, NCLT also allowed the Centre to freeze the bank accounts and lockers of Gensol Engineering Ltd and many of its subsidiaries after investigations revealed major financial irregularities

Reliance Infra says made full payment of ₹92.68 cr, NCLT order infructuous

Reliance Infrastructure on Monday said it has made the full payment of Rs 92.68 crore to Dhursar Solar Power Pvt Ltd towards claims of tariff, making the initiation of insolvency proceedings infructuous. "The company has made full payment of Rs 92.68 crore to Dhursar Solar Power Private Limited, towards claim of tariff as per the Energy Purchase Agreement with the company," Reliance Infra said in a stock exchange filing. The company said it will appeal before the NCLAT and will seek withdrawal of the Order dated May 30, 2025, passed by NCLT Mumbai for initiation of the corporate insolvency resolution process. "The NCLT Order has become infructuous as legally advised, upon full payment having already been made," it said. The Mumbai bench of the National Company Law Tribunal (NCLT) had admitted an insolvency plea against the company. The plea was filed by IDBI Trusteeship Services Ltd. In April 2022, IDBI Trusteeship had filed a petition for initiating a corporate insolvency resolut

IBC drives major behavioural shift in corporate credit culture: IIM-B study

The Insolvency and Bankruptcy Code has reshaped India's credit culture by instilling financial discipline among borrowers and strengthening corporate governance practices, according to a research study conducted by the Indian Institute of Management, Bangalore. The study is based on the comprehensive draws on a wide dataset covering corporate insolvency resolution proceedings sourced from the Insolvency and Bankruptcy Board of India for the period 20172023, financial data from CMIE Prowess from 2010 to 2024, and RBI data on non-performing assets over the same period. The study found that the IBC led to a sharp improvement in credit discipline, with a notable decline in overdue loan accounts and quicker repayment behaviour. The proportion of loans shifting from 'Overdue' to 'Normal' steadily increased post-IBC implementation, and the average duration accounts stayed in the 'Overdue' category shrank dramatically from as much as 248-344 days to as little as 30-87 days. Regarding the c

SC admits Byju's promoters' pleas, next insolvency hearing on July 21

SC admits cases filed by Byju's promoters challenging NCLAT ruling on BCCI insolvency plea despite settlement; interim relief to be taken up in July

Parliamentary panel flags 'ambiguities' in IBC; govt mulls amendments

Following the status quo put on BPSL's liquidation, a parliamentary panel has deemed the existing IBC not up to the mark

IBBI to set up IP panel for faster appointments from July to December

The new zone-wise panel of insolvency professionals will be valid from July 1 to December 31, 2025, aimed at reducing delays in NCLT and DRT appointments

IBC not meant to shield violators of consumer rights from prosecution

The Supreme Court observed that staying the penalties imposed by the National Commission would set a dangerous precedent, allowing developers to delay justice by invoking insolvency proceedings

60% resolution plans under IBC approved in last three years: IBBI data

IBBI data reveals 30,000 cases with defaults of Rs 13.8 trillion settled pre-admission under IBC till December 2024; creditor recovery at 32.8 per cent by March 2025

Govt likely to amend IBC to scrap prior CCI nod for insolvency bids

Experts feel a clarity by the government on this matter would bring relief to bidders who were concerned about approaching CCI before the CoC approval

IBC requires urgent reforms to meet demands across various sectors

Court orders and reforms do not compensate for the legislative clarity needed in IBC for sector-specific insolvency processes

Creditors recover record ₹67,000 crore via IBC in FY25, up 42% from FY24

Creditors recovered ₹67000 crore through IBC in FY25 a 42% jump from FY24 aided by record corporate resolutions and higher NCLT capacity after new appointments

Don't stretch your power beyond statute: NCLT chairperson cautions litigant

NCLT Chairperson R Sudhakar says tribunal must operate within IBC and Companies Act as BPSL liquidation returns to Delhi bench after Supreme Court's recent ruling

Finality of biz transactions: How delays undermined the Bhushan resolution

Court ordered the liquidation of BPS, which had been successfully rescued under the IBC in 2019 with the approval of relevant market participants and layers of state agencies

Ireda files insolvency plea against Gensol for ₹510 crore loan default

State-run Ireda files insolvency petition under IBC against Gensol Engineering after loan default; Sebi probe and promoter resignations deepen regulatory scrutiny