Sampriti & Sugi Malati Murmu Introduction and Background With the decision of Lalit Kumar Jain v. Union of India, the Supreme Court has dealt a death blow to the personal guarantor’s right of subrogation arising after the approval of the resolution plan. The bench upheld the constitutional validity of the notification dated November 15, 2019, […]
Category: Insolvency
In this Article, the authors analyse the rationale and consequences of the recent judgment passed by the Supreme Court, in Lalit Kumar Jain v. Union of India, where it was held that approval of a resolution plan relating to a corporate debtor does not operate to discharge the liabilities of personal guarantors.
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 […]
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, […]
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 […]
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 […]
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 […]
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 […]
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 […]
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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