Learn more about Insolvency and bankruptcy space in India and around the world. Discover the insights from industry leaders to learn what's new and how you can use the IBC to your advantage.
The Insolvency and Bankruptcy Code (IBC) is a landmark legislation passed by the Indian Parliament in 2016 to consolidate and amend the laws relating to insolvency and bankruptcy in India. The IBC provides a unified legal framework for the resolution of corporate insolvency and bankruptcy, with the aim of promoting the maximization of value of assets, balancing the interests of all stakeholders, and ensuring timely resolution of cases.
The Insolvency and Bankruptcy Code (IBC) was introduced in India in 2016 to provide a unified framework for resolving insolvency issues. One of the key components of the IBC is the Corporate Insolvency Resolution Process (CIRP), which provides a mechanism for resolving insolvency issues faced by companies.
Q : What Led to Enactment of the Code ?Ans: The Bankruptcy Law Reforms Committee (BLRC) constituted by Government of India observed in its report in the year 2015, that the prevailing legal framework is highly fragmented and incoherent as well as marred by legislative and judicial uncertainty. It recommended for overhauling multiplicity of laws relating to insolvency and for constitution of a dedicated regulatory and institutional framework.
Supreme Court held that NCLT & NCLAT clearly erred in its observation that Sales Tax approached RP at belated stage, after approval of Resolution Plan – claim was not filed within time. As observed by SC, delay in filing a claim cannot be the sole ground for rejecting a claim. Further, SC held that NCLAT also erred in law in rejecting the application/ appeal on the following grounds:
Recently in the matter of Balkrishna Rama Tarle (Dead) Through LRs Vs. Phoenix ARC Pvt Ltd & Others has, Hon’ble Supreme Court, while examining the scope of powers of CMM/DM in taking possession of the secured assets, has reiterated that Section 14 does not involve any adjudicatory process qua the points raised by borrowers against secured creditor taking possession of secured assets and that the CMM/DM is not required to adjudicate disputes between borrower and secured creditor and/or between any third party and the secured creditor.
In India, the Ministry of Micro, Small, and Medium Enterprises (MSME) sector acts as a backbone of the Indian economy and promotes equitable development for all. Employing around 120 million people and contributing approximately 30% to India’s GDP, Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in job creation and nation-building.
Highlighting the significance of Micro, Small & Medium Enterprises (MSMEs) in terms of their contribution towards employment and Gross Domestic Product of the country, pre-packaged insolvency resolution process (PPIRP) has been introduced specifically to cater
While setting up and running our businesses, we need to borrow money from banks, NBFCs and such other financing organisations. The lenders typically ask for guarantees from the promoters, directors and such individuals; while sanctioning the loans
The Insolvency and Bankruptcy Code (IBC) 2016 is a comprehensive and systemic economic reform by India that consolidates all existing laws dealing with Insolvency & Bankruptcy.
You’ve probably heard about terms such as insolvency, bankruptcy, and liquidation. But do you know who are the experts that make these complex processes work and make sure that there a resolution to these difficult situations?
Are you a Homebuyer who has paid advances and development costs to the builder but have not been given the possession of your home yet? Delays in real estate projects can be frustrating and homebuyers can feel helpless against a powerful developer with financial and legal means. Not anymore – with the Insolvency and Bankruptcy Code, homebuyers can initiate insolvency proceedings against the builders and enforce their rights and make the builder pay up.