IBC News
Proceedings Under Section 138 NI Act Have Nothing To Do With Insolvency Application Under The Code: NCLT
The Kolkata Bench of the National Company Law Tribunal recently ruled that disclosure of the fact of initiation of proceedings under Section 138 of the Negotiable Instruments Act in not necessary while filing an Application for Insolvency under the Insolvency and Bankruptcy Code, 2016."It is to be made clear that the proceedings under section 138 of Negotiable Instrument Act is a...
Promoters Cannot Escape Liquidation Of Personal Assets Given As Security By Filing For Bankruptcy under Code: NCLT [Read Order]
The National Company Law Tribunal recently held that the personal properties of the Promoters given as security to the Banks can be proceeded against, in spite of initiation of insolvency proceedings against the Company.Judicial Member M.K. Shrawat ruled that personal properties of the Promoters would not saved by the Moratorium prescribed by Section 14 of the Insolvency and Bankruptcy...
Gujarat HC Denies Relief To Essar Steel Against RBI's Order to Initiate Insolvency Proceedings [Read Judgment]
The Gujarat High Court on Monday dismissed Essar Steel's Petition against the Reserve Bank of India's directive to Banks for initiating insolvency proceedings against the Company. An oral order was passed by Justice S.G. Shah, with a detailed order expected later today.Essar Steel had approached the High Court challenging a circular issued by the RBI on 13 June, directing banks to...
Meeting Of Committee Of Creditors – Insolvency Code: Practical Hitches And Possible Solutions Thereto
Practice makes a man perfect and the same practice (read: implementation) makes a law seamless. Insolvency and Bankruptcy Code, 2016 along with its allied rules and regulation is just a year old technically (and around 5 months old effectively) and surely there are gaps which are being detected during implementation.One such gap is in the provisions laid down for convening the meeting of...
Key Takeaways From The NCLAT Judgment In Kirusa Vs Mobilox
In the context of initiating corporate insolvency resolution by an operational creditor against a corporate debtor under section 8 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), a corporate debtor can, at a preliminary stage, resist such initiation (within the prescribed time limit under the IBC) in one of the two ways; either,(a) it can bring 'to the notice of the operational...
Finally, Interpretation Of 'Dispute' By NCLAT In Kirusa V. Mobilox
Under the Insolvency and Bankruptcy Code, 2016 ("Code"), an operational creditor can initiate a corporate insolvency resolution process ("CIRP") of the corporate debtor by filing an application before the relevant National Company Law Tribunal ("NCLT/ Adjudicating Authority") upon occurrence of a default in payment of its operational debt.However, the operational creditor must first send a...
A Dispute As To "Dispute"
The Insolvency and Bankruptcy Code, 2016 ("the Code") enables a financial creditor and an operational creditor to initiate insolvency proceedings against a corporate debtor. While in case of a financial creditor, the creditor may initiate a case without serving "demand notice" on the corporate debtor; an operational creditor, before taking action under section 9, shall first serve a demand...
NCLT Allows One Of The First Applications U/S 10 Of The Fresh Insolvency Code [Read Order]
The National Law Company Tribunal, Mumbai has allowed one of the very first applications under the newly notified Insolvency and Bankruptcy Code, 2016. The application was filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 on behalf of the corporate debtor i.e.Rajeshwari weaving mills which has debts up to the tune Rs. 16 crores. The matter was argued by Shrey Sinha,...
NCLT To Pronounce Judgement In Cyrus Mistry's Contempt Petition On Jan 18
The National Company Law Tribunal reserved it's order in the contempt petition filed by Cyrus Investments Ltd and Sterling Investment against Ratan Tata, N A Soonawala, R K Krishnakumar and R Venkatraman till January 18.Apart from Tata the other three respondents are directors of Tata Sons and trustees of Sir Ratan Tata Trust and Sir Dorabjee Tata Trust.The division bench of B S V Prasad...
Expanding Role of Management Professionals, Chartered Accountants, Company Secretaries, Cost Accountants and Advocates under the regime of the Insolvency and Bankruptcy Code, 2016
IntroductionThe Insolvency and Bankruptcy Code, 2016 ("Code") has been introduced with the primary objective of increasing lender's confidence and facilitating expansion of the credit market in India. As has been stated in the objects clause, the objective of this new law is to promote entrepreneurship, availability of credit, and balance the interests of all stakeholders by consolidating...
In Light Of Corporate Ministry Notification, Bombay HC Lays Down Rules For Transfer Of Petitions To NCLT [Read Order]
On December 7, 2016, a notification was issued by the Central Government, through the Corporate Ministry, it stated- All petitions relating to winding up under clause (e) of Section 433 pending before High Courts, and which have not been served on the Respondent as required by Rule 26 of the Companies (Court) Rules, 1959, stand transferred to the appropriate Bench of the National Company...
Insolvency And Bankruptcy Board Of India Notifies Regulations
The Insolvency and Bankruptcy Board of India (IBBI) has notified two new regulations that govern the eligibility criteria for becoming a professional member of an Insolvency Professional Agency or for registering with the IBBI as an Insolvency Professional Agency.The Insolvency and Bankruptcy Board of India (IBBI), in exercise of its powers conferred under section 240 of the Insolvency...