The objective of the new law is to promote entrepreneurship, availability of credit, and to balance the interests of all stakeholders by consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner and for maximization of value of assets of such persons and matters connected therewith or incidental
In this article we will go through the various forms that have to be filled and perused to understand the procedure on insolvency. it is always pertinent to understand the various forms and its uses to use the Code to its best. FORM 1: application by financial creditors to initiate corporate insolvency resolution process: under s.7 rule 4(Financial creditors to
The IBC has clearly outlined the powers and duties of the interim resolution professional that he can exercise during the insolvency resolution process. He is required to act according to the Code and follow it during the tenure of IRP. The IRP’s role in conducting the procedure is most important for the successful Resolution of a company under CIRP. Statutes
Once a petition under the IBC is admitted against the Corporate Debtor, a moratorium under Section 14 of IBC follows in favor of Corporate Debtor. The moratorium under IBC kicks in on the Insolvency Commencement date and is in force till the Corporate Insolvency Resolution Process (‘CIRP’) period and during such period no judicial proceedings for recovery, enforcement of security
Information furnished from the Information Utility: a necessity? NCLT:DELHI In the recently held judgment – M/s Dhankalash Distributors Pvt Ltd vs M/s Arena Superstructures Pvt Ltd the Principal Bench had held that the information produced from the Information Utility is not necessary when other necessary documents are available to establish a debt/default. The corporate debtor had defaulted in repaying Principal
Corporate debtor is someone who owes a debt to any person. A corporate person is defined under section 3(7) of the Code. Section 3(7) CORPORATE PERSON: means a company as defined in clause (20) of section 2 of the Companies Act, 2013, a limited liability partnership, as defined in clause (n) of sub-section (1) of section 2 of the Limited
The IBC Ordinance, 2020 promulgated on June 5, 2020. The scheme stipulates and lays down extra norms for insolvency proceedings. The government had felt that operation of Section 7,9 and 10 should be suspended due to the economic distress faced during the pandemic. Negatives: “Section 10A: Suspension of initiation of corporate insolvency resolution process 10A. Notwithstanding anything contained in Sections
Amid the lockdown, the President of India, Mr. Ram Nath Kovind passed the much- awaited amendment ordinance to suspend and implement certain provisions for the time being due to the COVID-19 disruption which stopped the functioning of many markets and has made companies insolvent therefore the current amendments came into force to save these companies and help them to revive. The
The IBC was mainly implemented to address the shortcomings in existing staggered insolvency laws in India. The Insolvency and Bankruptcy Code 2016, enacted to radically change the process of insolvency resolution in India, is keenly watched by economists and jurists as well as businessmen and investors, for the reason that each aspect of the implementation of law has the potential
The Corporate Insolvency Resolution Process plays a key role in deciding the debtor company’s fate it can either be run as a going concern or can also be put under liquidation process. In this Article the author tries to establish the procedural theoretical aspects of the insolvency resolution process after such order is passed by the National Company Law Tribunal.
