The implementation of the Insolvency and Bankruptcy Code, 2016 (IBC) was started on December 1, 2016 with an intent to provide a consolidated legal framework to allow resolution of the corporate debtor in a time-bound manner. The journey of the IBC right from the onset has been subjected to various challenges such as (a) reluctance on the part of the financial creditors in taking companies to the National Company Law Tribunal (NCLT) under IBC; (b) preventing backdoor entry for the promoters with significant haircut on the debt due and payable to the creditors; (c) the rights of home buyers when the real estate company ended up in NCLT; (d) difficulties in attracting investors to buy the distressed corporate debtor under a resolution plan; (e) withdrawal of the corporate insolvency resolution process post its commencement; (f) issues with respect to sharing between financial creditors and operational creditors; and (g) delay in completion of the resolution process. The Government, the Reserve Bank of India (RBI), the courts and the Insolvency and Bankruptcy Board of India (IBBI) have been addressing these challenges in a proactive manner. In fact, this has led to three amendments to the IBC by the Parliament, several amendments to the regulations by the IBBI, and the laying down of important legal principles to uphold the spirit of the IBC by the courts including the Hon’ble Supreme Court of India. In this article, we highlight some of the key developments that have taken place to address the challenges.
Amendments to the IBC
This story is from the October 2019 edition of Legal Era.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 2019 edition of Legal Era.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
If You Think Positive Covid Is A Big Opportunity
Senior Vice President and Head of Legal, ESSAR CAPITAL, Badrinath Durvasula, holds forth on his professional journey, the essence of leadership, working from home, books and more…
PROJECT DEVELOPMENT
JOINT VENTURE TRANSACTIONS
NEW ARBITRATION RULES
PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)
M&A in the time of COVID and beyond
What is clear for those engaging in cross-border M&A is that countries around the world are becoming increasingly protective of their economies and industries, with new rules being introduced and existing rules being more widely applied
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Swiss law interprets the offense of fraud in a special way where in addition to the characteristics of deception and damage as known in many jurisdictions, a qualified lie, i.e. a malicious approach, is required
JOINT VENTURE DISPUTES MEDIATING
Mediation has shown itself to be a powerful tool for bringing a speedy and effective end to crossborder disputes while preserving the commercial relationship between them.
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
A TEST CASE IN THE MAKING?
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Two recent developments in Singapore case law and legislation reflect a willingness to preserve confidentiality related obligations in all arbitrations
ESSENTIAL GOODS SERVICES UNDER IBC
WHAT DOES IT ESSENTIALLY MEAN?
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
A LOOK AT THE KEY CHANGES PRESIDENT-ELECT BIDEN IS LIKELY TO MAKE ONCE HE TAKES OFFICE
