Bankruptcy Archives

Cross Border Insolvency | SICC recognises and enforces foreign proceeding concerning restructuring plan for PT Garuda Indonesia

A mandatory effect operates to recognise a foreign proceeding once the requirements in Article 17 of the Third Schedule are satisfied.

Case Briefs High Courts

Explained| Madras High Court verdict on constitutionality of Section 204 of the Insolvency and Bankruptcy Code

“Regulations and Byelaws framed under Section 204 IBC clearly provide checks and balances. Therefore, it cannot be said to be confirmation of excessive or unbridled power”

Hot Off The Press News

Supreme Court upholds constitutional validity of provisions relating to Personal Guarantors in IBC; Holds IBC cannot operate in retroactive manner

“IBC does not suffer from any manifest arbitrariness to violate Article 14 of the Constitution”

Case Briefs Supreme Court

No absolute or unfettered discretion on the part of Liquidator to cancel auction which is otherwise valid: Supreme Court

Supreme Court said that the mere expectation of the Liquidator that a still higher price may be obtained can be no good ground to cancel an otherwise valid auction and go for another round of auction.

OP. ED.SCC Journal Section Archives

Preference and the Exclusion of Transfers Made in the “Ordinary Course of Business” Under the Insolvency and Bankruptcy Code, 2016

by Sriram Venkatavaradan and Saai Sudharsan Sathiyamoorthy†

Case Briefs Supreme Court

Period of suspension of legal proceedings is excludable in computing limitation period for enforcement of right under Section 22(5), SICA: Supreme Court

Supreme Court held that the period of suspension of legal proceedings is excludable in computing the period of limitation for the enforcement of such right in terms of Section 22(5), SICA. Further, the dismissal of the application under Section 9, IBC on the ground of ‘pre-existing dispute’ cannot be held to be patently illegal or perverse.

Case Briefs High Courts

[IBC] Statutory authorities chose not to submit their proof of claim; Delhi High Court quashes show cause issued by Directorate of Revenue Intelligence

In the instant case, the Directorate of Revenue Intelligence neither submitted proof of claim nor responded to a specific communication via an e-mail addressed to Senior Intelligence Officer. This is a case where despite knowledge, the statutory authorities chose not to submit their proof of claim.

Case Briefs Supreme Court

PF and gratuity dues not part of liquidation estate; cannot be recovered under Section 53 of IBC which provides for waterfall mechanism: Supreme Court

Supreme Court upheld the NCLT order that the provident fund, pension fund and gratuity fund are not part of the liquidation estate, for distribution under Section 53 of the IBC and the same has to be paid to the employees under the stated heads.

Op Eds OP. ED.

Free for All

by K. Vaitheeswaran*

Case Briefs High Courts

Approval of a Resolution Plan does not ipso facto discharge a Personal Guarantor of a Corporate Debtor of his liabilities under Contract of Guarantee; Allahabad High Court reiterates

Allahabad High Court said that challenge to demand notice for electricity dues, issued jointly in name of Directors of the insolvent company cannot be sustained on the ground that liabilities of guarantor stood automatically discharged on acceptance of Resolution Plan.

Case Briefs High Courts

Divesting DRTs of their pecuniary jurisdiction without any amendment to RDB Act 1993 is unsustainable; Bombay HC stays notification changing DRT jurisdiction in matters above ₹100 crores

Bombay High Court: While hearing a challenge to the Government Notification dated 04/10/2022 changing the jurisdiction of Dept Recovery Tribunals

Case Briefs High Courts

Delhi High Court | PMLA seeks to subserve a larger public policy imperative; Moratorium under S.14 IBC does not affect ED’s attachment power under PMLA

An order of attachment when made under the PMLA does not result in the corporate debtor or the Resolution Professional facing a fait accompli.

Case Briefs High Courts

Interim moratorium under S. 96 IBC in respect of one of the guarantors would not ipso facto apply against a co-guarantor; Delhi HC stays suit in view of bar under S.96 IBC

Delhi High Court: In two separate suits filed seeking recovery of amount from the defendants, being ex- promoters and personal guarantors of

Legislation Updates Rules & Regulations

Insolvency professional must not accept any fees or charges from any professional and/or support service provider vide IBBI (Insolvency Professionals) (Second Amendment) Regulations, 2022

The Insolvency and Bankruptcy Board of India has notified Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations,

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLAT | Can the OTS proposal be an ‘acknowledgment of debt’ under S. 18 of the Limitation Act, 1963?

National Company Law Appellate Tribunal, Delhi: The Bench of Anant Bijay Singh, J., Judicial Member, and Shreesha Merla, Technical Member,

Legislation Updates Rules & Regulations

Provisions for document submissions to the Resolution Professional modified vide IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2022

On 14th June, 2022, Insolvency and Bankruptcy Board of India notifies Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate