As per Section 60 (5) (c) of the Insolvency and Bankruptcy Code (IBC), the jurisdiction of matters, inter alia, pertaining to Intellectual Property infringement by a corporate debtor is vested with the National Company Law Tribunal (NCLT) which is empowered by the IBC to entertain and dispose off any question of priorities or any question of law or fact, arising out of or concerning the insolvency resolution for liquidation proceedings.
On 5 June 2020, the Government of India issued an ordinance (The Insolvency and Bankruptcy Amendment (Ordinance), 2020 (the Ordinance)) to amend the Insolvency and Bankruptcy Code, 2016 (the Insolvency Code). This follows on from the Finance Minister’s press conferen
Observing that the short-term loans advanced by few Appellants on exorbitant rates of interest (40% to 60% per annum) were covered under Extortionate Credit Transactions as prohibited under Section 50(1) of the Insolvency and Bankruptcy Code, 2016, the NCLAT has set aside the entire transactions as illegal and void and held them as not entitled to any relief.
The Government of India has introduced a slew of legislative, regulatory and financial measures to support the MSME sector amidst the financial crisis created by the COVID-19 pandemic.
Background
The Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act) provides a raft of protections and incentives for micro, small and medium enterprises (MSMEs).
Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020
On 5th June, 2020, the Insolvency and Bankruptcy Code (Amendment) Ordinance was promulgated to amend the provisions of the Insolvency and Bankruptcy Code (“Code”). The rationale for the said amendment is to prevent corporate persons experiencing financial distress on account of the unprecedented Covid-19 situation from being pushed into insolvency proceedings.
New Section 10A
In a significant judgment dated 9 June 2020 titled ‘Indus Biotech Private Limited v.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 suspends the applicability of Section 7, 9 and 10 of the Insolvency and Bankruptcy Code for 6 months to protect corporate entities defaulting on payment obligations during the Covid-19 pandemic.
Introduction
Introduction
Indian Banking sector is going through a hard time due to various reasons including but not limited to increase in Gross Non-Performing Assets (GNPA), loan frauds/corruption in some cases, economic slowdown etc. Rise in NPAs is major concern for banks as it reduces profit of banks and restricts the loan giving ability of the banks by way of provisioning. Reasons for the rise in NPA can be attributed to aggressive lending practice by the banks and willful default by borrowers i.e., lack of willingness to repay.
Introduction