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).
The procedure of filing an application by an operational creditor under Insolvency and Bankruptcy Code (IBC)
Section 6 of the Insolvency and Bankruptcy Code,2016 (“IBC”) provides that only three categories of persons can initiate Corporate Insolvency Resolution Process(“CIRP”) namely financial creditors, operational creditors and the corporate debtor itself. Procedure for initiating the corporate insolvency process in all the three cases are different.
Whether the suspended board of directors entitled to managerial remuneration while the Company is undergoing CIRP
While the powers of the Board are suspended and the Directors continue to perform their duties, are they entitled to managerial remuneration while the CIRP is under progress? The relevant provision dealing with the directors of the Corporate Debtor which is undergoing CIRP is explained under Section 17 (1)(b) of the Insolvency and Bankruptcy Code
Moratorium Under Insolvency and Bankruptcy Code -EasyLegalTax
Insolvency and Bankruptcy Code, 2016 (“IBC”) has given new hope to the financial market in India. Before IBC the debt recovery system in India was in a complete clutter, which was affecting the Indian Economy. The IBC has introduced the concept of moratorium under Section of the I & B Code in a Company which undergoes the corporate insolvency resolution process (in short CIRP) as soon as a Petition/Application either filed by a Financial Creditor or an Operational Creditor or a Corporate Applicant is admitted.
Functions, Powers and Duties Insolvency Resolution Process -EasyLegalTax
Insolvency Resolution Professional(“IRP”) has been given wide powers under the Insolvency and Bankruptcy Code, 2016 (“I & B Code”) so that he/she can conduct the Corporate Insolvency Resolution Process (“CIRP”) smoothly. Although the IRP is always under the supervision of the Committee of Creditors, Adjudicating Authority and Insolvency and Bankruptcy Board of India.
Time limit for completion of Insolvency Resolution Process -EasyLegalTax
As per Section 12 of the Insolvency and Bankruptcy code, the whole procedure involved in the Corporate Insolvency Resolution Procedure (CIRP) should be completed within 180 days. However, same can be duly extended up to 90 days. In nutshell, the resolution procedure should be completed within 270 days, failing to which the Adjudicating Authority will initiate Liquidation procedure under Chapter III of the Code.
Corporate Insolvency Resolution Process -EasyLegalTax
After the admission of application for corporate insolvency, submitted to the Adjudicating Authority by the corporate debtor, financial creditor or operational creditor under section 7,9 or 10 of the Insolvency and Bankruptcy Code, 2016 (“I & B Code”), the Corporate Insolvency Resolution Process (“CIRP”) commences.