When Zero Hour Strikes: The Insolvency And Bankruptcy Code As An Exit Mechanism

The Insolvency and Bankruptcy Code, 2016 (“Code”) caused a magnanimous shift in the field of insolvency and bankruptcy laws in India. The Code has transformed the insolvency regime from a “debtor in possession” to a “creditor in control” one, providing major control to the financial and operational creditors of a corporate debtor in an insolvency […]

Liability Of Personal Guarantors Vis-A-Vis Lalit Kumar Jain Vs. Union Of India And Ors.

Introduction On 15th November 2019, a notification was issued by the Ministry of Corporate Affairs which bought into force Part III of the Insolvency and Bankruptcy Code, 2016 (“Code”), as per which insolvency against the personal guarantors to the Corporate Debtor could be initiated. The notification was challenged before various High Courts and on 29th […]

Pre-Packaged Insolvency Resolution Procedure

Pre-pack is a type of restructuring in which creditors and debtors collaborate on an informal agreement before submitting it for approval. Micro, Small and Medium enterprises companies are typically run by promoters, making it impossible to resurrect them if the administration is removed under the standard Corporate Insolvency Resolution Process (“CIRP”). The latest ordinance encourages current […]

Liquidation Under Insolvency And Bankruptcy Code, 2016- Compulsory?

Is Liquidation Compulsory Under IBC, 2016? The insolvency resolution process in India has in the past elaborated the simultaneous operation of several statutory instruments. This includes the Sick Industrial Companies Act, 1985, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest, 2002, the Recovery of Debt Due to Banks and Financial Institution […]

MSMED Act-An Alternative For Debt Recovery Over IBC

Is MSMED Act More Convenient Than IBC for Debt Recovery? The Micro, Small and Medium Enterprises (MSME) sector has emerged vividly as a progressive segment in recent times. This sector has become the backbone of the Indian economy and plays a key role in supporting the manufacturing sector. It contributes substantially as an ancillary unit […]

Can MSMED Act Be An Alternative To Proceedings Under IBC For Start-Ups?

One of the most gabbed and appalling legislation in recent times has been the development of the Insolvency & Bankruptcy Code, 2016 (“IBC”) as a recovery mechanism. However, the recent announcement by the Finance Minister(“FM”), Ms. Nirmala Sitharaman, has brought shock to the businesses in a gambit to give relaxation to the defaulting companies due […]

“A Rip Roaring Spectacular Journey of IBC”

The Tenor of the Astounding IBC Amendment Act 2020 Notification Raising the Threshold Limit for Triggering the Insolvency In time as tough as today, when the whole world is under the impact of Covid-19 which has forced the country to be under lockdown, the notification dated March 24, 2020,[1] wherein the Ministry of Finance announced […]

Role of Liquidator vs. RP in Insolvency Proceedings

There are hundreds of cases that have been filed and closed under Insolvency and Bankruptcy Code, 2016 (“IBC”) or are being battled out. There are many lessons that can be learnt from the obvious mistakes committed by some of the best lawyers, courts, and creditors.  This article analyses such a case that has omitted the grey area […]

Penny for a Thought? The IBC Perspective of Personal Guarantor Insolvency

Hell hath no fury like the targeted Personal Guarantors; with the 15th November 2019 notification[1] that was brought into force on 1st December 2019 by the Central Government of India under the Insolvency and Bankruptcy Code 2016 (“IBC”). With the effectuation of this notification, personal guarantors will be forced to face the wrath and impending […]