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** This blog was co-published as a news item on https://legaldesire.com/insolvency-process-can-continue-despite-assets-of-corporate-debtor-being-attached-by-ed/ The case for the Applicant Resolution Professional was argued by one of our members – Counsel Krishna Grandhi of GLC & Partners. The National Company Law Tribunal (NCLT), Hyderabad Bench, has delivered an important ruling impacting several ongoing tussles between the Prevention of Money...

In the case of M/S Innoventive Industries Pvt. Ltd vs. ICICI Bank & Anr { CIVIL APPEAL No. 8337-8338 of 2017], the Hon’ble Supreme Court for the first time explained the paradigm shift in the law by virtue of the newly enacted Insolvency and Bankruptcy Code, 2016 (“Code”) which consolidates and amends all the insolvency...

In the case of IndiaBulls Housing Finance Ltd. vs. Rudra Buildwell Projects Pvt. Ltd [Company Appeal (T) (insolvency) No. 172 of 2019] the question before NCLT is whether the appellant can claim to be a ‘Financial Creditor’ under the Insolvency and Bankruptcy Code, 2016 (“Code”) or not? In the above case, a tripartite agreement was...

In the case of Capri Global Capital Limited Vs. Value Infracon India Pvt. Ltd.(Through its Resolution Professional Mr. Sanjay Kumar Singh) & Anr.( Company Appeal (AT) (Insolvency) No. 29 of 2019) the main issue before the NCLAT was whether the financial creditor can claim voting rights against the total loan amount of the contract or...

In the case of Brilliant Alloys Private Limited Vs. Mr. S. Rajagopal & Others [Special Leave to Appeal (C) No(s). 31557/2018], the Hon’ble Supreme Court allowed the withdrawal of the Corporate Insolvency Resolution Process (“CIRP”) application under the Insolvency and Bankruptcy Code, 2016 (“IBC”) after the issuance of the invitation for expression of interest. The appeal...

Since the inception of the Insolvency and Bankruptcy Code 2016 (“Code”), there has been an ambiguity with respect to the applicability of the Limitation Act, 1963 (“Limitation Act”) to the provisions of the Code. The Hon’ble Supreme Court in the case of B.K. Educational Services Private Limited v. Parag Gupta and Associates [Civil Appeal No....

From the time the Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force, there has been some ambiguity regarding the differentiation of a creditor as a Financial Creditor (“FC”) or as an Operational Creditor (“OC”) and the constitutional validity of such differential treatment. As per Section 5A of the IBC, a Financial Creditor  “means any...

The moratorium period under Section 14 of The Insolvency and Bankruptcy Code, 2016 (“IBC”) talks about various proceedings and transactions that are given a pause while Corporate Insolvency Resolution Process (“CIRP”) is in process. The rationale behind such prohibition is to let the negotiations take place without any restriction which might occur due to destruction...

The Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force with three main objectives, i.e., “promote entrepreneurship, availability of credit and balance the interests of all the stakeholders”. To achieve and balance all three objectives, it is important that the Resolution Plan (“RP”) accepted by the Committee of Creditors (“CoC”) caters to the need of...