Page 5 - Insolvency And Bankruptcy Code

NCLT grants 8-day extension for Reliance Capital's ownership transfer

The National Company Law Tribunal (NCLT) on Wednesday gave additional eight days to all parties to complete procedural issues for the ownership transfer of debt-ridden Reliance Capital (RCAP) to IndusInd International Holdings Ltd (IIHL). The Mumbai-bench of NCLT heard the matter and a joint status update was given by the committee of creditors, administrator, and IIHL on the progress of the implementation of the resolution plan. The NCLT advised all parties to ensure completion of the implementation process by March 20, while granting the extension and posted the matter for further hearing on March 25, 2025. The procedural documentation and filings for the last leg of the transaction for the remaining Rs 4,500 crore is under process. However, due to the upcoming banking holidays, a seven-day extension was considered appropriate by all parties. With this acquisition, IIHL intends to expand its banking, financial services, and insurance (BFSI) portfolio. In April 2023, IIHL emerged

Insolvency-bound Jaiprakash Associates must be sold as one unit: NCLT

NCLT has said 'Form G' published by the resolution professional of JAL inviting Expression of Interest from prospective buyers

SpiceJet in trouble as 3 aircraft lessors, ex-pilot file insolvency pleas

SpiceJet is facing fresh round of troubles as three Ireland-based aircraft lessors and a former pilot have filed insolvency pleas in NCLT against the budget carrier, claiming defaults. Three lessors - NGF Alpha, NGF Genesis and NGF Charlie- have filed petitions under Section 9 of IBC, seeking initiation of insolvency proceedings against SpiceJet claiming dues totalling USD 12.68 million (about Rs 110 crore). SpiceJet, during the proceedings of the National Company Law Tribunal, earlier this week, sought some time to resolve the matter as settlement talks were going on. "Counsel on behalf of the Operational Creditor (SpiceJet) is present and sought time to seek instructions on the future course of action to be taken in the matter," NCLT said in an order. The insolvency tribunal directed to list all three petitions on April 7, 2025, for the next hearing. The lessors had earlier leased five Boeing 737 to SpiceJet. They had served legal notice to SpiceJet wherein they alleged theft o

Jindal Power to acquire Bhadreshwar Vidyut as lenders approve Rs 500 cr bid

Jindal Power Limited is set to acquire Bhadreshwar Vidyut for nearly Rs 500 crore as the lenders of the Gujarat-based thermal power producer have approved its bid. The Committee of Creditors (CoC) of Bhadreshwar Vidyut, which is currently going through an insolvency resolution process, has voted in favour of the resolution plan by Jindal Power Limited (JPL), a Naveen Jindal Group company, according to industry sources. As per the provisions of the Insolvency & Bankruptcy Code (IBC), the resolution professional of the debt-ridden thermal power producer will send the plan to the National Company Law Tribunal for final approval. A source close to the deal said, "Jindal Power was the highest bidder in the second challenge process. The company will now work towards completing the acquisition within the next six months". In a rigorous multi-round bidding, each participants were given a chance to improve their offers. Eventually, Jindal Power emerged as the highest and sole bidder in the

AGS Transact Technologies faces insolvency over alleged unpaid dues

Maxwel Aircon India Private Limited, an operational creditor of the company, has alleged default in repayments and sought an initiation of corporate insolvency in the National Company Law Tribunal

NCLAT condones delay in PepsiCo insolvency plea, to list for hearing

The National Company Law Appellate Tribunal (NCLAT) on Monday condoned the delay over a plea to initiate an insolvency petition filed against food & beverage major PepsiCo India Holdings by one of its operational creditors and directed to list for hearings before a bench. The Registrar of the appellate tribunal has condoned the delay of six days in re-filing the Memo of Appeal against the orders of the Chandigarh bench of the National Company Law Tribunal, which had rejected SNJ Synthetics's plea. Under the Insolvency and Bankruptcy Code (IBC), a person aggrieved by an NCLT order can challenge it before the appellate tribunal NCLAT by filing an appeal within 30 days from the date of receiving the NCLT order. "Considering the submissions made on behalf of the appellant and for the reasons mentioned in the IA, which are sufficient, the delay of 06 days in re-filing the Memo of Appeal is hereby condoned. As prayed, list the case before the Bench under the heading for admission (fresh

Judge says Byju's official broke duty to lenders by hiding $533 million

Byju's fraudulently transferred at least part of the money to a small hedge fund based in Miami to keep it out of lenders' hands, US Bankruptcy Judge John Dorsey also ruled

NCLAT sets aside insolvency proceedings against Coffee Day Enterprises

The NCLAT was hearing an appeal filed by a director of CDEL's suspended board

Centre considers to revamp bankruptcy laws amid low recovery rates

The Insolvency and Bankruptcy Board of India is finalizing a set of proposals aimed at speeding up resolution

Downward shift in liquidations seen under IBC: IBBI chairperson Ravi Mittal

Of the total cases ending in liquidation, 211 had admitted claims of more than Rs 1,000 crore, with aggregate claims of Rs 9.59 lakh crore

NCLT admits insolvency proceedings against Aviom India Housing finance

The National Company Law Tribunal (NCLT) has admitted the application for commencement of corporate insolvency resolution process against AVIOM India Housing Finance. On January 27, the Reserve Bank had superseded the board of AVIOM owing to governance concerns and defaults in meeting various payment obligations, and appointed Ram Kumar, ex-CGM of Punjab National Bank, as its Administrator. The action was taken basis recommendation of the National Housing Bank (NHB). Later, it filed an application with the NCLT, New Delhi bench, for initiation of corporate insolvency resolution process (CIRP) against AVIOM India. RBI also set up a three-member advisory committee to assist Administrator Ram Kumar. Upon admission of the petition for CIRP against AVIOM (order dated February 20, 2025), the RBI on Friday said it has decided that the three-member committee shall continue as the advisory committee. The panel shall advise the Administrator in the operations of AVIOM during the CIRP, the

IBBI mandates timely reporting of insolvency assignments on portal

Regulator IBBI has made it mandatory for insolvency professionals to report their assignments on its electronic portal within the prescribed time to streamline record-keeping. In a circular dated February 11, the insolvency regulator said, "The IPs (insolvency professionals) are mandated to intimate the insolvency and bankruptcy board of India (IBBI) of his/her appointment under various processes under the Code". Currently, the IPs add their assignments on the IBBI portal for appointments for interim resolution professionals (IRPs) or resolution professionals (RPs) under the corporate insolvency resolution process (CIRP), as well as for liquidators in liquidation and voluntary liquidation processes, the Board said. However, there is no requirement for adding assignments relating to RPs under the insolvency resolution of personal guarantors, bankruptcy trustee under the bankruptcy process of personal guarantors and administrator under insolvency and liquidation proceedings of financi

Creditors recover Rs 3.58 trn through resolution plans under insolvency law

Creditors have recovered Rs 3.58 lakh crore through resolution of 1,119 cases under the insolvency law till December 31, 2024, according to official data. Citing data from the Insolvency and Bankruptcy Board of India, Minister of State for Corporate Affairs Harsh Malhotra told Rajya Sabha on Tuesday that 2,707 cases have ended in liquidation orders. "As per information provided by Insolvency and Bankruptcy Board of India (IBBI), till 31st December 2024, 1,119 cases have yielded resolution plans. In these cases, the realisable value for the creditors has been Rs 3.58 lakh crore," he said in a written reply. Final reports have been submitted in 1,274 cases, in which the creditors have realised Rs 0.13 lakh crore, the minister added. According to him, information in respect of amount waived/ forgone in pursuance to the settlement is not maintained. "Realisation under the Insolvency and Bankruptcy Code (IBC) process is market driven and is inter-alia dependent on the quality of assets

NCLT asks BCCI to submit insolvency withdrawal plea before Byju's CoC

On Monday, the NCLT also asked all parties to file their replies concerning allegations that former resolution professional Pankaj Srivastava had failed to discharge his duties properly

NCLT recalls insolvency order against Logix Infra, cites 'mala fide' intent

In a rare move, NCLT has recalled and set aside its own order directing insolvency proceedings against realty firm Logix Infrastructure in July 2023, saying the plea was initiated with "fraudulent and mala fide intentions" and a collusive petition was filed by the financial creditor. NCLT said "there is a nexus and connection" between its financial creditor Experts Realty Professionals whose plea for insolvency was initiated against Logix Infrastructure. The corporate tribunal said the entire transaction was "orchestrated" and forum was used "with purported malicious intent". The insolvency petition filed "with an ulterior motive" against Logix Infrastructure and its financial creditor has used this forum for purposes other than the insolvency resolution of the realty firm with purported malicious intent, contrary to the objectives of the IBC, the tribunal said. The National Company Law Tribunal (NCLT) also asked for a thorough probe by the Serious Fraud Investigation Office (SFIO)

IBBI revises insolvency rules to support homebuyers in resolution process

The Insolvency and Bankruptcy Board of India has amended rules to allow distressed homebuyers to take possession of their properties while the resolution process is ongoing. The amendments, notified on February 3, and effective immediately, aim to enhance efficiency in insolvency proceedings, particularly for real estate projects, by introducing measures such as appointing facilitators, involving land authorities in the process, and ensuring better monitoring of resolution plans, according to an official release. The Insolvency and Bankruptcy Board of India (IBBI) has amended rules governing the corporate insolvency resolution process. One of the important changes empowers resolution professionals after obtaining approval of the Committee of Creditors and upon fulfilment of all obligations can now hand over possession of plots, apartments, or buildings to the homebuyers while the resolution process is still ongoing, the IBBI said. This move is expected to ease the long delays often

IBBI amends standards for info utilities rules to enhance verification

Stricter norms have been put in place for information utilities under the insolvency law to enhance identity verification and streamline the authentication process for financial default records. The Insolvency and Bankruptcy Board of India (IBBI) has amended the guidelines for technical standards governing information utilities, which acts as a repository of financial records related to insolvency proceedings. Amending the guidelines, IBBI on Wednesday said the changes streamline the filing and verification of financial default records by introducing stronger user authentication procedures. "For establishing user's identity during user registration process, IU (Information Utilities) to make use of the facility of demographic authentication of user from UIDAI database. For this purpose, IU shall obtain a Sub - Authentication User Agency (AUA) license from UIDAI," it added. Further, to enhance data integrity, the framework mandates the use of a Permanent Account Number (PAN) or any

Resolution plans with mergers need CCI clearance before CoC approval: SC

SC rules 2:1 that CCI approval for insolvency resolution plans involving mergers must be obtained before CoC approval, setting aside AGI Greenpac's plan for HNGIL's acquisition

RBI supersedes Aviom India Housing Finance's board, appoints administrator

The regulator said it "intends to shortly" initiate the process of resolution of the company under the Insolvency and Bankruptcy Code (IBC)

NCLAT dismisses insolvency plea against HUL, cites pre-existing dispute

The National Company Law Appellate Tribunal (NCLAT) on Monday set aside a plea against HUL, filed by an operational creditor seeking initiation of insolvency proceedings against the FMCG major. The appellate tribunal has upheld an order passed by the Mumbai bench of the National Company Law Tribunal (NCLT), which on September 5, 2024 had set aside a plea filed under Section 9 of IBC by K Lakshmi Narayana, Proprietor of Lalithambica Enterprises, alleging default. The NCLT had found that the sum of the invoices, which was within the three-year limitation period, was less than the threshold limit of Rs 1 crore. Besides, the appellate tribunal noted that HUL's submission relates to a pre-existing dispute, for which a legal notice was issued on January 17, 2019. The decision was challenged before NCLAT, where a two-member bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Arun Baroka, dismissed it observing the existence of a dispute on claims. "... according to