Financial Creditors can Initiate Insolvency against Personal Guarantors under IBC
The new framework allows Creditors to continue recovery process with Personal Guarantor after completion of the Corporate Insolvency Resolution Process.
Search Results for: financial creditors under the IBC
Are Homebuyers Secured Financial Creditors or Unsecured Financial Creditors under IBC?
There has been no further clarification as to whether the home buyers are secured financial creditors or unsecured financial creditors, but in consideration of the recent developments, one thing is sure that the result will be in the interest of homebuyers only.
Recognition of Home Buyers as Financial Creditors under IBC
Home buyers are vital stakeholders in building projects. Many home buyers book their property in advance which helps builders raise funds for construction and development of the project.
Timely Filing of Claims in case of Real Estate Projects undergoing CIRP
At the initiation of CIRP when a public notice is issued under Section 15, claims of creditors are invited; but in some scenarios in real estate cases, homebuyers are often unable to take note of the public announcement of CIRP owing to different factors.
Director Liability in Financial Distress: Interactions Between the IBC, 2016, and the Companies Act, 2013
Director liability during financial distress- An interplay of the IBC, 2016 and the Companies Act, 2013. It is undisputed that in times of solvency, director’s responsibilities are mainly directed towards shareholders, under the guidance of the Companies Act.
Protecting the Rights of Creditors and Debtors under the Insolvency and Bankruptcy Code in India
The Insolvency and Bankruptcy Code (for short “I&B Code”), enacted in 2016, marked a significant reform in India’s economic landscape by streamlining the insolvency resolution process and providing a balanced framework.
Treatment and Priority of EPFO dues under Insolvency and Bankruptcy Code, 2016 (“IBC”)
The provisions Insolvency and Bankruptcy Code, 2016 specifically provides for treatment for all sums due to any workman or employee from the provident fund
Interim Finance during CIRP under Insolvency & Bankruptcy Code, 2016 (“IBC”)
Interim Finance is defined under Section 5 (15) of the IBC, 2016 which means
Succinct Summary of The Fast Track CIRP under IBC, 2016
The fast-track CIRP is designed to expedite the insolvency process for smaller companies and enable their efficient restructuring or liquidation.
Deciphering the Enigma of Interim Moratorium under IBC
Insolvency and Bankruptcy Code, 2016 brings in the concept of Interim Moratorium, which offers protection to individuals during the insolvency process.
The attachment of assets by the ED under the PMLA Act is not permissible once a company has entered insolvency
Asset attachment by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) is critical in combating money laundering and criminal activities.
How IBC can be helpful to Start-Up?
The fast track process which can be initiated by a creditor or the corporate debtor itself cuts down the time taken to complete an insolvency resolution to almost half as compared to the regular process under the IBC.
Service of Advance Copy of Applications to IBBI for Initiating CIRP under IBBI Rules, 2016
the advance copy of the Application for initiating CIRP under Section 7, Section 9, or Section 10 of IBC, 2016 needs to be served to the Insolvency & Bankruptcy Board of India.
Whether IBC prevails over Custom Act?
The IBC would prevail over The Customs Act, to the extent that once the moratorium is imposed in terms of Sections 14 or 33(5) of the IBC, as the case may be, the respondent authority has a limited jurisdiction to assess/determine the quantum of custom duty and other levies.
NEW CHALLENGES IN THE IBC WATERFALL MECHANISM
A key element that differentiates the IBC from previous legislation governing corporate insolvency is the distribution waterfall in the event of liquidation.
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