SC overturns HC’s intervention in IBC case, Cites delay and laches, ET LegalWorld
The Supreme Court has held that the High Court committed an error in entertaining the writ petition, which set aside the resolution plan after the proceedings were initiated under the Insolvency and Bankruptcy Code, 2016. The court highlighted that the notice was not given before the 19th Committee of Creditors meeting, which occurred way back […]
NCLAT on companies under IBC, ET LegalWorld
The insolvency appellate tribunal has held that there is no bar against assessment proceedings by statutory authorities, including the EPFO, once the liquidation process starts against any debt-ridden company under the IBC. However, it also clarified that once a debt-ridden company is protected under moratorium after the initiation of insolvency proceedings against it, the Employees’ […]
Can the NCLT modify approved resolution plan under the IBC? NCLAT rules, ET LegalWorld
The National Company Law Appellate Tribunal has held that the inherent powers vested with the Adjudicating Authority cannot be invoked for accommodating a belated claim thereby causing a modification of the Resolution Plan as these powers cannot be directed to create any such remedy which is contrary or in contravention of the IBC framework of […]
Over 40,000 filed in NCLT under IBC by September 2024, ET LegalWorld
Highlights As of September 30, 2024, a total of 40,943 cases have been filed in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016. Creditors have realized 3.55 lakh crore under resolution plans, achieving 161.11% of the liquidation value and 86.13% of the fair value of the assets. The quarterly reports indicate […]
Section 10 IBC filings need proof of fraud for malicious intent claims, ET LegalWorld
The National Company Law Appellate Tribunal has held that the mere fact that the application is filed, consequent of which the recovery proceedings may be halted, cannot lead to the conclusion that the intent and purpose of the application are malicious and fraudulent. The appellate tribunal had to consider whether the rejection of Section 10 […]
Supreme Court advances reforms in IBC amid Jet Airways liquidation, ET LegalWorld
The Supreme Court in the matter of Jet Airways liquidation has outlined policy reforms in the Insolvency and Bankruptcy Code, 2016. The court termed the matter was an, “an eye-opener,” considering the importance of IBC. The nature of IBC suggests that the insolvency ecosystem be continuously strengthened through a regular identification of its shortcomings and […]
NCLAT rules trusts as related parties under IBC, ET LegalWorld
The National Company Law Appellate Tribunal has clarified that ‘trust’ falls under the definition of ‘person’ under Section 2(23) of the Insolvency and Bankruptcy Code, 2016, and whereby the corporate debtor is controlled by a trust in the manner prescribed by aforesaid Sections, then the said trust, qualifying as a ‘person, would fall under the […]
IBC must evolve to strengthen institutions and tackle judicial delays, Experts say, ET LegalWorld
The Insolvency and Bankruptcy Code, 2016 was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for the purpose of maximization of the value of assets and balance the interests of all the stakeholders. The Ministry of Corporate Affairs has […]
IBBI proposes mediation option for operational creditors before filing insolvency under section 9 of IBC, ET LegalWorld
The Insolvency Bankruptcy Board of India has proposed that operational creditors can exercise the option of mediation before filing insolvency applications under Section 9 of the IBC. Under this scheme, the operational creditor can undergo mediation with the aid of a mediator, as provided under the Mediation Act, 2023. In case of failure of mediation […]
Regular IBC tweaks needed to address bankruptcy challenges, says Corporate Affairs Ministry, ET LegalWorld
The corporate affairs ministry has underscored the need for a “continuous refinement” in the Insolvency and Bankruptcy Code (IBC) to address future challenges in corporate recast effectively. In an internal communication dated October 30, the ministry said: “The Code’s adaptability to evolving business landscapes ensures that it remains dynamic and responsive, while its continuous refinement […]