Should lawyers be allowed to accompany the Creditor in Committee of Creditors? -EasyLegalTax
In India, under the IBC, there is no provision which permits the legal advisor to go with his client in the Committee of Creditors (CoC). In any case, the IBC gives that where the bank can't go to the meeting, he has the ability to approve any agent or some other individual to go for his benefit. In any case, there is no provision which permits the corporate account holder to take the attorney alongside him in the gathering. Along these lines, the IBC, IBBI and the Courts rules are quiet on this.
DOES RESOLUTION PLAN NEED TO MATCH THE LIQUIDATION VALUE? -EASYLEGALTAX
Justice Anirudh Bose speaking through two-judges bench in the case of Maharashtra Seamless Ltd (MSL) v. Padmanabhan Venkatesh and others. The SC was called upon to decide, firstly, whether the code contemplates that the sum forming part of the resolution plan should match the liquidation value or not. And secondly, whether Section 12-A is the applicable route through which a successful Resolution Applicant can retreat. The NCLAT has approved the resolution plan computing of amount of Rs.477 crores, this has given the Resolution Applicant pennies from the heaven as they would get assets valued at Rs.597.54 crores at much lower amount.
Can insolvency petition, be entertained in a case where financial fraud exists -EasyLegalTax
Section 65 was consolidated in the Insolvency and Bankruptcy Code, 2016 (the "Code") so the provisions thereof can't be abused by any individual who has started the insolvency resolution procedure or liquidation procedures with a fake or vindictive plan, and for any reason other than for the resolution of insolvency or liquidation, by and large.
Section 14: moratorium -EASYLEGALTAX
The moratorium regarding Insolvency and Bankruptcy Code, 2016 ('IBC') implies a period wherein no legal procedures for recovery, enforcement of security interest, sale or transfer of assets, or termination of essential contracts can be established or proceeded against the Corporate Debtor. This brings up a fascinating issue on the issue of the pertinence of the Moratorium to the procedures under Section 138 of the Negotiable Instruments Act, 1891 (NI Act).
INSOLVENCY PROFESSIONAL UNDER THE IBC, 2016 -EASYLEGALTAX
The Insolvency and Bankruptcy Code, 2016 (IBC) was introduced to consolidate laws relating to insolvency resolution of corporate persons, firms and individuals. While the Code in itself is very intricate and accommodates point by point mechanism of insolvency resolution, the obligation and duty of an Insolvency Professional/Resolution Professional (IP/RP) can't be ignored.
WHY NCLAT ORDERS ARE APPLEALLABLE TO SUPREME COURT ONLY? -EASYLEGALTAX
On the vide recommendation of Justice Eradi Committee on law relating to insolvency and winding up of companies, the NCLT and NCLAT was established on 1st June, 2016. The jurisdiction of NCLT and NCLAT extents to the Companies Act, 2013 and Limited Liability Partnerships under the Insolvency and Bankruptcy Code, 2016. The NCLT and NCLAT has limited subject-matter jurisdiction specifically in the matters related to the companies and their liquidation and insolvency. The establishment of the NCLT and NCLAT was also challenged in the SC but the court upheld their establishment.
COMPANY UNDER LIQUIDATION BARRED FROM INITIATING CIRP OF ANOTHER COMPANY UNDER I&B CODE.
The National Company Law Appellate Tribunal (NCLAT) in an Appeal preferred by Mr. Abhay N. Manudhane, the Liquidator of Gupta Coal India Pvt. Ltd. (‘Corporate Debtor’) against the order dated 30th May, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench has upheld the judgment passed by the Adjudicating Authority, Mumbai Bench whereby an Application filed under Section 9 of the I&B Code by the Liquidator of the Corporate Debtor against another Company was dismissed.