insolvency

Cumulative Redeemable Preference Shareholders Cannot Trigger Insolvency Proceedings: Supreme Court

Summary: In EPC Constructions India Ltd. v. Matix Fertilizers & Chemicals Ltd., the Supreme Court addressed whether holders of non-cumulative redeemable preference shares can initiate insolvency proceedings under Section 7 of the IBC, as financial creditors. The Court held that preference shareholders are not creditors and cannot trigger insolvency proceedings, as preference shares remain part of the share capital even upon maturity, and conversion of debt into preference shares permanently extinguishes the original creditor relationship. This landmark judgement reinforces the fundamental distinction between debt and equity, clarifying that IBC remedies are available only to creditors and not shareholders.Continue Reading Cumulative Redeemable Preference Shareholders Cannot Trigger Insolvency Proceedings: Supreme Court

Judicial Interplay with Legislation: Analysing the Insolvency and Bankruptcy (Amendment) Bill, 2025 [Part II]

Continuing the analysis presented in Part I of this blog, the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (“Bill”), proposes incorporation of the rationale laid down by various judicial forums in the following judgments:Continue Reading Judicial Interplay with Legislation: Analysing the Insolvency and Bankruptcy (Amendment) Bill, 2025 [Part II]

IBC vs. PMLA: Supreme Court Reinforces Jurisdictional Boundaries in Kalyani Transco Case

The Insolvency and Bankruptcy Code, 2016 (“IBC”), was enacted to inter alia provide a consolidated framework to resolve insolvency in a time-bound manner and to maximise the value of assets. This objective is further aided by a moratorium under Section 14 that halts legal proceedings against the corporate debtor, and the immunity provision under Section 32A, which offers a fresh slate to resolution applicants upon plan approval.Continue Reading IBC vs. PMLA: Supreme Court Reinforces Jurisdictional Boundaries in Kalyani Transco Case

Choosing the Correct Door: NCLAT Clarifies Jurisdiction for Insolvency of Personal Guarantors

The National Company Law Appellate Tribunal, New Delhi (“NCLAT”), has clarified and resolved the ambiguity surrounding the question of jurisdiction of the National Company Law Tribunal (“NCLT”) to entertain insolvency applications against personal guarantors where no corporate insolvency resolution process (“CIRP”) is pending against the corporate debtor. The issue was addressed through a recent judgment dated January 23, 2025, in Anita Goyal vs. Vistra ITCL (India) Ltd. & Anr.[1] (“Judgement”).Continue Reading Choosing the Correct Door: NCLAT Clarifies Jurisdiction for Insolvency of Personal Guarantors

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

Group Insolvency: Introduction

Group means two or more enterprises, which directly or indirectly are in a position to exercise 26% or more voting rights in other enterprise or appoint more than 50% members of the Board of Directors in the other enterprise or control the management or affairs of the other enterprise.[1]Continue Reading High Time for Group Insolvency Framework?!