IBC Proceedings

IBBI Chairperson Ravi Mital on Tuesday asked insolvency professionals to be as transparent as possible during the resolution process as that will help in improving the bids and reduce haircuts. Speaking at a conference organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) in the national capital, he said insolvency professionals and insolvency professional entities are the fulcrum of the insolvency system. While highlighting that the insolvency professionals need to be mindful of time and delays, Mital said, "be as transparent as possible during the bidding process. This will improve bids, reduce haircuts and improve image of the IBC ecosystem," according to a release issued by IIIPI. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).

After boosting NCLT's strength, the MCA has asked the body to expeditiously dispose of crucial cases, especially M&A, under the Companies Act

Citing several judgments, the SG said only the company can speak for the shareholder

For cases that have been resolved, creditors have continued to face a haircut of around 70 per cent of the admitted claims

The Supreme Court on Thursday said if two corporate bodies fall within the ambit of corporate debtors, there is no reason why insolvency proceedings cannot be initiated against both under the IBC. Section 7 of the Insolvency and Bankruptcy Code (IBC) deals with the initiation of the corporate insolvency resolution process by financial creditors. The apex court also observed that approval of a resolution in respect of one borrower cannot "certainly discharge" a co-borrower. A bench of Justices Indira Banerjee and J K Maheshwari delivered its verdict on a plea against the August last year judgement of the National Company Law Appellate Tribunal (NCLAT) which had dismissed an appeal against an order of the adjudicating authority, the National Company Law Tribunal (NCLT), Mumbai. The NCLT had in its February last year order admitted a petition for initiation of Corporate Insolvency Resolution Process (CIRP) against a firm for the same set of loans arising out of the same loan documents

The move, according to tax experts, will set a precedent for matters related to recoveries

The creditors of DHFL will recover an aggregate amount of Rs 38,000 crore from the resolution

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It refused to stay, at this stage, a notice issued by SBI to Singal seeking to invoke personal guarantee under the provisions.

As per the Ordinance, the corporate insolvency resolution process cannot be initiated against a company under the IBC for defaults arising on or after March 25, 2020, for a period of six months

Suspension could be extended to one year and is expected to allow companies to get their business back on track without the fear of being dragged into insolvency

The Corporate Affairs ministry will issue a special circular to define the time period which will cover "covid related debt" to be exempted from default, the finance minister said

Section 7 of the Code enables financial creditors to start insolvency proceedings against a company, while section 9 gives these powers to an operational creditor

But, also this amount is 210 per cent of their liquidation value," Insolvency and Bankruptcy Board of India (IBBI) chairman M S Sahoo said.

Financial creditors initiated around 1,086 cases or 43 per cent

A case is taken up for resolution under the law only after approval from the National Company Law Tribunal (NCLT)

The code came into force in December 2016 and the first resolution case was approved in August 2017

ED's move could stall the resolution process, prevent banks from recovering their pending dues

Move to prevent reopening of claims, protect acquired assets

Of the 2,162 cases admitted under the IBC, corporate insolvency resolution process of 1,292 cases are going on