Ratio Decidendi Insolvency And Bankruptcy Code
Legal Era|September 2017

While IBC consolidates scattered and unstructured jurisprudence on insolvency prevalent in the past, in view of various interpretational issues, one is bound to witness a whirlwind of judicial pronouncements that will result in the development of IBC jurisprudence in days to come

Ratio Decidendi Insolvency And Bankruptcy Code

The enactment of the Insolvency and Bankruptcy Code, 2016 (IBC) marks a historical step by lawmakers of India in the jurisprudence relating to corporate insolvency. IBC was primarily enacted with the objective of consolidating and amending laws relating to reorganization and insolvency resolution of corporates, firms, and individuals in a time bound manner to maximize the value and potential of their assets.

IBC is inspired by the UK Insolvency Act, and historically, a large part of the insolvency jurisprudence across the world is based on judicial precedents and that is where tribunals and courts sit to create principles that serve as precedents in times to come.

Insolvency in layman’s language means inability of a person or company or corporation to repay its debts when they become due or when the liability of the person or company or corporation exceeds the value of its assets. Bankruptcy is the condition when they have become bankrupt where a revival is not possible and occurs at the end of the insolvency process.

Key Themes Under The Ibc

• Interpretation Of “Dispute”

Sub-section (6) of Section 5 of IBC defines “dispute” to include any suit or arbitration relating to the existence of a debt; quality of goods or services; or breach of a representation or warranty.

• Stages In A Corporate Insolvency Process

IBC provides a two-stage process for corporate insolvency. The first stage is famously described as the Corporate Insolvency Resolution Process (CIRP) under which any of the financial creditors, operational creditors, or the corporate itself can initiate proceedings on a payment default by way of an application before the respective National Company Law Tribunal (NCLT). IBC recognizes two kinds of creditors who can trigger CIRP: operational creditor and financial creditor.

• Timelines

Bu hikaye Legal Era dergisinin September 2017 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Legal Era dergisinin September 2017 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

LEGAL ERA DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
If You Think Positive Covid Is A Big Opportunity
Legal Era

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…

time-read
10+ dak  |
December 2020
PROJECT DEVELOPMENT
Legal Era

PROJECT DEVELOPMENT

JOINT VENTURE TRANSACTIONS

time-read
10+ dak  |
December 2020
NEW ARBITRATION RULES
Legal Era

NEW ARBITRATION RULES

PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)

time-read
6 dak  |
December 2020
M&A in the time of COVID and beyond
Legal Era

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

time-read
6 dak  |
December 2020
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Legal Era

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

time-read
5 dak  |
December 2020
JOINT VENTURE DISPUTES MEDIATING
Legal Era

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.

time-read
7 dak  |
December 2020
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
Legal Era

Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA

A TEST CASE IN THE MAKING?

time-read
8 dak  |
December 2020
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Legal Era

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

time-read
5 dak  |
December 2020
ESSENTIAL GOODS SERVICES UNDER IBC
Legal Era

ESSENTIAL GOODS SERVICES UNDER IBC

WHAT DOES IT ESSENTIALLY MEAN?

time-read
6 dak  |
December 2020
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
Legal Era

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

time-read
7 dak  |
December 2020