As per the scheme of the Insolvency and Bankruptcy Code, 2016 (“Code”), an application for initiation of corporate initiation resolution process (“CIRP”) can be filed by the debtor itself or by a financial or operational creditor. The Code provides for filing of record of default recorded with the Information Utility (“IU”) as evidence of default, along with other specified documents.
Continue Reading Proving default: IU reports not the be-all and end-all
For initiating proceedings under the Insolvency and Bankruptcy Code 2016 (“IBC”), categorisation of a creditor as either a “financial creditor” or an “operational creditor” is a rather significant first step. Such categorisation is not merely organisational, but essential since the rights, obligations and procedural requirements for realisation of debt by financial and operational creditors also differ under the IBC.
Continue Reading Untangling legal knot: SC’s ruling on “security deposits” as financial or operational debt under IBC![SUPREMACY OF THE IBC VIS-A-VIS THE ELECTRICITY ACT[1]](https://disputeresolution.cyrilamarchandblogs.com/wp-content/uploads/sites/894/2023/09/Blog-Image9-656x375.png)
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]