Corporate Insolvency Resolution Process

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Simultaneous IBC Proceedings against Corporate Debtor and Corporate Guarantor: Critical Takeaways from BRS Ventures Case

The legal landscape governing insolvency resolution in India has undergone significant transformation since the advent of the Insolvency and Bankruptcy Code, 2016 (“IBC”). One of the contentious issues in this evolving framework is whether simultaneous insolvency proceedings can be initiated against both the corporate debtor and its corporate guarantor for the same debt. The recent Supreme Court judgment in BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. (2024 INSC 548) offers clarity on the treatment of such proceedings and reinforces key principles governing the relationship between creditors, debtors, and guarantors.Continue Reading Simultaneous IBC Proceedings against Corporate Debtor and Corporate Guarantor: Critical Takeaways from BRS Ventures Case

Bombay High Court upholds NCLT’s decision to release ED attached properties after nod to IBC Resolution Plan

The High Court of Bombay (“Court”) in a recent judgment[1] has upheld the NCLT’s powers to direct the Directorate of Enforcement (“ED”) to release attached properties of a corporate debtor, once a resolution plan in respect of the corporate debtor had been approved. The Court’s decision was based on an interpretation of Section 32A of the Insolvency and Bankruptcy Code, 2016 (“IBC”).Continue Reading Bombay High Court upholds NCLT’s decision to release ED attached properties after nod to IBC Resolution Plan

Pending Section 37 Appeal under Arbitration Act: Not a Legitimate Ground for Entertaining Belated Claim under IBC

The Hon’ble Supreme Court in the landmark RPS Infrastructure Ltd vs. Mukul Sharma[1] judgement, once again delved into the issue of claims being made beyond the statutorily prescribed timelines in a Corporate Insolvency Resolution Process (“CIRP”). In this case, an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), was pending against a Section 34 award and the Appellant submitted a claim for the same subsequent to the committee of creditors (“COC”) approving the resolution plan. Continue Reading Pending Section 37 Appeal under Arbitration Act: Not a Legitimate Ground for Entertaining Belated Claim under IBC

No room for change- How Final is the Final Resolution Plan, Exploring the Practical Repercussions

Introduction

The modification or withdrawal of Resolution Plans under the Insolvency and Bankruptcy Code, 2016 (“Code / IBC”) had always been a contentious subject, with the National Company Law Tribunal (“Adjudicating Authority / NCLT”) and National Company Law Appellate Tribunal (“NCLAT”) taking conflicting views in the past.Continue Reading No room for change- How Final is the Final Resolution Plan, Exploring the Practical Repercussions

SUPREMACY OF THE IBC VIS-A-VIS THE ELECTRICITY ACT[1]

INTRODUCTION:

In a recent judgement of Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Private Ltd. and Ors. (being Civil Appeal No.7976 of 2019), the Hon’ble Supreme Court has held that Section 238 of the Insolvency and Bankruptcy Code, 2016 (“IBC/Code”) overrides the provisions of the Electricity Act, 2003, despite the latter containing two specific provisions being Section 173 and 174 which have overriding effect over all other laws.Continue Reading Supremacy of the IBC vis-a-vis The Electricity Act [1]