Search Results for: IBC proceeding

Supreme Court: Personal Guarantor Liable for Loans under IBC

The Supreme Court of India has cleared the way for lenders to file insolvency proceedings against personal guarantors of stressed companies, who are typically promoters.

Gujarat High Court on banks’ statutory right to initiate Proceedings against Loan Defaulters

Gujarat High Court dismissed Essar Steel’s petition and refused to grant any of the reliefs sought by Essar Steel. The Gujarat High Court moved quickly and efficiently, and the order was issued within 10 working days of Essar Steel’s filing of the case.

What is the meaning of “Residuary Jurisdiction” of the NCLT under IBC?

The Supreme Court of India defined Section 60(5) of the Code as a residuary jurisdiction vested in the NCLT, allowing the NCLT to decide all questions of law or fact arising out of or in relation to the corporate debtor’s insolvency resolution or liquidation under the Code.

Formation and composition of the committee of creditors under IBC, 2016

The Committee of Creditors (CoC) is the preeminent dynamic body in a Corporate Insolvency Resolution Process (CIRP). Choices with respect to the organization of the corporate borrower are taken at the gatherings of the Committee, in light of a dominant part vote of the individuals.

How is Interim Resolution Professional Appointed under IBC

The resolution professional, as proposed respectively in the application under section 7 or section 10 of IBC, shall be appointed as the interim resolution professional under Section 16(2) of IBC, if no disciplinary proceedings are pending against him.

Assocham requests Finance Ministry to re-impose moratorium under IBC

Due to the outbreak of Second wave of Coronavirus, Assocham has requested the finance ministry to re-impose a moratorium on bringing debt-ridden firms to NCLT under the Insolvency and Bankruptcy Code (IBC) until December 2021.

IBC to predede over PMLA: NCLAT

This isn’t the first time the NCLAT has ruled that, IBC rules take precedence over other laws, such as the attachment of corporate debtor’s assets under the PMLA.

IBC against NBFC

The IBC’s applicability to NBFCs is a welcome legislative effort, and the new rules have extended the RBI’s role in performing an NBFC’s CIRP.

Section 7 of the IBC is covered by Section 14 of the Limitation Act

Hon’ble Supreme Court has held that in an application under Section 7 of the Insolvency and Bankruptcy Code, the applicant can claim the benefit of Section 14 of the Limitation Act, in respect of proceedings under the SARFAESI Act.

How NCLT through IBC can help homebuyers to get refund from defaulting Builders

Hon’ble SC clarified the position of the homebuyers similar to that of a “financial creditor” under the IBC, after this the homebuyers were at a par with banks and financial institutions.

IBC vs SARFAESI Act

The IBC is favoured over the SARFAESI Act, primarily because it offers a quick solution and is also effective in reviving the company and safeguarding the interests of all stakeholders.

Contradictions between The RERA and IBC

The IBC recognizes homebuyers under financial creditors to protect their rights even when a creditor, other than a homebuyer, invokes insolvency proceedings against the builder.

The Applicability of Section 10A of IBC would be Retrospective in Nature

The default occurred after the cut-off date, the NCLAT held that the bar imposed under Section 10A was clearly attracted.

Winding up Proceedings will not create any bar for initiation of the Insolvency Proceedings

These two judgements would be of great importance because they have paved a way for the transfer of post-notice winding up petitions pending before the different High Courts.

Group Insolvency- The Future of Successful Resolution under IBC

It is advisable to the creditors to make a plea of initiating Group Insolvency while filing an application for initiation of CIRP against a corporate debtor.