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Coronavirus Insolvency

Pre-Packs in Indian Insolvency Regime – A Much-Needed Paradigm shift

Vishesh Jain and K.Amoghavarsha Introduction On 5th June 2020, the Government of India promulgated an ordinance for the Insolvency and Bankruptcy Code, 2016 as a closing move to what was a series of steps to protect Corporate Debtors from initiation of insolvency proceedings in these unprecedented times. It has inserted Section 10A which has effectively […]

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Insolvency

Independence of Resolution Professional: Confounding the Aspect of Bias Under the Code Through SBI V. Metenere Ltd.

Saumya Agarwal and Sakshi Ajmera The National Company Law Appellate Tribunal (NCLAT) on 22 May 2020, in the case of State Bank of India v. M/s. Metenere Limited  adjudicated upon the issue of independence of an interim resolution professional (IRP)/ resolution professional (IRP) during a corporate insolvency resolution process (CIRP). Though in the instant case, […]

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Insolvency

Bad Banks: Is it the Wonder Drug to India’s NPA Crisis?

By Vaishnavi Vyas and Priyanshu Agrawal Introduction The outcome of the Global Financial Crisis, in the mid-2000s, caused the first wave of the Indian Banking catastrophe in the form of the Twin Balance Sheet crisis. The infrastructure projects began to go sour, affecting companies’ capacity to repay loans and thereby deteriorating the balance sheet of […]

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Insolvency Securities

Bringing NBFCs within the ambit of IBC: A quick fix solution?

By Kritika Dobhal On November 29, 2019, the Reserve Bank of India [“RBI”] initiated Corporate Insolvency Resolution Process [“CIRP”] against Dewan Housing Finance Limited [“DHFL”], making it the first Non-Banking Financial Companies [“NBFC”] to be brought within the ambit of Insolvency and Bankruptcy Code, 2016 [“IBC”]. This was made possible due to the Insolvency and […]

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Insolvency

Ambit of Insolvency and Bankruptcy Code, 2016: Insolvency & Government Companies

By Abhishek Wadhawan Understanding the Debate The Insolvency & Bankruptcy Code, 2016 is an economic legislation enacted with the aim of helping distressed companies by balancing the interests of all stakeholders. But not all corporate debtors, private and government, can be treated as the same due to difference in objectives, mission, profits etc. The issue […]

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Insolvency

Light at the end of the tunnel: How Jet Airways can avoid liquidation

By Rohin Goyal On 20th June 2019, one of India’s pioneer airlines which used to be “THE” airline in India, officially began the Corporate Insolvency Resolution Process [“CIRP”] by order of the National Company Law Tribunal [“NCLT”], Mumbai [1]. Soon after, similar proceedings were initiated in Amsterdam as well [2]. Jet Airways has been plagued […]

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Insolvency

Separate Legal Entity Principle: Friction Between Company And Insolvency Laws

By Shivangi Pandia and Prateek Charan Background The word company has no technical meaning attached to it. It simply means a group of individuals who have come together for a common goal. The individuals may associate themselves either for an economic or for a non-economic cause. Chief Justice Marshall defines company to mean that a […]

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Insolvency

Placing Homebuyers Under the Category of Secured Financial Creditors Under The IBC, 2016

By Ranu Tiwari The Background The Insolvency and Bankruptcy Code (Amendment) Ordinance 2018 has brought home buyers under the ambit of ‘financial creditors’. The Insolvency Law Committee (March 2018) concluded that the current definition of ‘financial debt’ is sufficient to include the amounts raised from home buyers/allottees under a real estate project, and hence, they […]

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Insolvency

Essar Steel Judgement: As promising as it Seems?

By Tanvi Prabhu and Saumya Agarwal In Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta &Ors, the Supreme Court on 15th November, 2019 dismissed the NCLAT order and upheld the approved Resolution Plan of ArcelorMittal in a joint venture with Japan’s Nippon Steel. It includes a payment of Rs. 42,000 cr. […]

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Insolvency

Simultaneous proceedings for the same debt under IBC

By Dhiraj Yadav and Barkha Dwivedi It is a well settled principle that the liability of a Principal Debtor and a Guarantor is coextensive. The same is enshrined under section 128 of the Indian Contract Act, 1872. Despite this, the act of initiating simultaneous proceedings against Principal Debtor and Guarantor for the same amount of […]