IBC News
Protection Of Interests Of Suppliers Of Goods And Services To Corporate Debtor Under Corporate Insolvency Resolution Process
Scope of the Study: The Insolvency and Bankruptcy Code, 2016 (Hereinafter referred to as "the Code") required the Resolution Professional to manage operations of the corporate debtor as a going concern during corporate insolvency resolution process[1] (Hereinafter referred to as "CIRP"). Receipt of supply of goods and services is imperative to maintain the corporate debtor as a...
Raising Of IBC Threshold : Retrospective Or Prospective?
On 24th March 2020, a press conference was held by the Union Finance Minister, Nirmala Sitaraman, at which she set out various decisions that were to be taken by the Government to combat the economic crises that has arisen due to the COVID-19 pandemic. One of the decisions was to raise the threshold of loan default amounts that could trigger insolvency proceedings from Rs. 1 Lakh to Rs....
Insolvency and Bankruptcy Code (Amendment) Act, 2020 : A Primer
"Recovery is incidental under the IBC. Its primary objective is rescuing companies in distress." – Dr. M.S. Sahoo (Chairperson, Insolvency and Bankruptcy Board of India) The above quoted words of Dr. Sahoo from his article in the print edition of Indian Express on March 14, 2020 under the title: 'The real reform', form the underlying theme of the Insolvency and Bankruptcy...
NCLT Extends Limitation Period From March 15 Till Further Orders [Read Notice]
The National Company Law Tribunal has issued a notice intimating all the litigants that the extension of limitation period granted by the Supreme Court on Monday will be applicable to the cases falling within the NCLT's jurisdiction. With the objective of reducing physical filings in courts and tribunals across the countries during the COVID-19 pandemic, the Supreme Court had on...
Sec 32A IBC : Delhi HC Sets Aside SFIO Complaint Against Tata Steel BS Ltd Filed In Respect Of Bhushan Steel [Read Judgment]
The Delhi High Court has quashed the summons as well as the complaint filed against Tata Steel BSL Ltd (erstwhile Bhushan Steel) by the Serious Fraud Investigation Office. However while setting aside the complaint, the Single Bench of Justice Vibhu Bakhru clarified that this order will not affect the prosecution of the erstwhile promoters or any of the officers who may be directly...
Increase In Threshold For Commencing Insolvency Proceeding
The Union Finance Minister of India announced on Tuesday that the threshold for triggering insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 ("Code") stands increased with immediate effect from Rs.1,00,000/- to Rs.1,00,00,000/-. The Central Government's power to specify such increase is found in Section 4 of the Code : "4. (1) This Part shall apply...
Impact Of Raising IBC Threshold On Operational Creditors
On 24th March, 2020, Government of India decided to raise the threshold for the determination of the default from Rs 1 lakh to Rs 1 crore in the light of the recent pandemic outspread of novel coronavirus disease Covid-19, in order to help and aid the functioning of the small companies and MSMEs which might face the threat of defaults owing to the lockdown. This decision has also...
[Breaking] IBC Threshold Raised As ₹ One Crore; Govt May Consider Suspending Sections 7, 9 & 10
In view of the lockdown due to COVID-19, the Finance Ministry on Tuesday announced special relief packages for companies under the Companies Act and the Insolvency and Bankruptcy Code.The existing threshold of Rupees one lakh for triggering insolvency is raised to Rupees one crore. The Ministry will also consider suspending Sections 7, 9, 10 of IBC for six months if the lockdown situation...
COVID-19: NCLAT Withdraws Roster For Urgent Listing; Limitation Extended From March 15 Till Further Orders [Read Notice]
In view of complete lockdown/shutdown across various cities of the country to restrict the transmission of COVID-19, the National Company Law Appellate Tribunal (NCLAT) has withdrawn the Rosters issued in regard to hearing of urgent matters on March 25 and April 1. On March 20, the Tribunal had restricted its functioning to hear only urgent matters till April 1, upon mentioning as per...
COVID19: All Benches Of NCLT To Remain Closed From Mar 23 Till Mar 31; NCLT Chennai To Take Up Urgent Cases On Intimation Via Email [Read Notice]
In view of the lockdown announced by several state governments and the Central Govt due to COVID-19, the National Company Law Tribunal (NCLT) has decided to close all its benches from March 23, till March 31, for judicial work. All counsels/ parties requiring urgent hearing may send an email to the registry of NCLT Chennai and intimate the same to the opposite party, whereafter the...
COVID-19: NCLAT Restricts Functioning To Hear Urgent Matters Till April 1, Interim Orders To Continue [Read Circular]
As a measure to prevent spread of COVID-19 pandemic, the National Company Law Appellate Tribunal has restricted its functioning to hear only urgent matters till April 1. The Tribunal has issued the following slew of directions to contain the pandemic: "(i) With effect from 21st March, 2020 till 1st April, 2020 only urgent matters will be listed for admission upon mentioning as...
COVID-19: NCLT Closes Filing Counters At All Its Benches; Issues Instructions For Cases With Limitation Issue [Read Order]
In order to prevent overcrowding in its premises during the prevalent threat of COVID-19, the National Company Law Tribunal on Thursday decided to close the filing counters at all of its benches till March 27. "It is observed that all NCLT Benches have become crowded at filing counters, which may lead to community transmission of Novel Coronavirus (COVID-10) therefore, it is...