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
M/s Transtec Resources Private Limited vs Registrar of Companies (12-11-2020) The petition was filed under section 252 (3) of the Companies Act- Gist of section 252: Section 252 of Companies Act, 2013 states that an individual aggrieved by an order given by the Registrar, stating a company as dissolved under Section 248, can file an appeal to the NCLT in less than
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
NCLT order Arcelor Mittal to pay Rs 1,300 crores to SREI infrastructure Arcelor Mittal had been using the slurry pipeline of SREI during the insolvency period. ArcelorMittal along with Japanese company Nippon Steel had jointly bid for Essar Steel and paid ₹42,000 crore last December to complete the deal through ArcelorMittal Nippon Steel India (AM/NS). However, SREI Infrastructure, which owns 69
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
