Continuing our exploration of the evolving insolvency landscape in 2023, Part 4 examines two pivotal cases that further shape the legal framework surrounding insolvency proceedings in India.

M/S. Vistra ITCL (India) & Ors. v. Mr. Dinkar Venkatasubramanian & Anr

Secured Creditor Rights and Treatment of Pledged Shares

In the intricate tapestry of corporate insolvency, the year 2023 unfurled a saga of legal intricacies that left an indelible mark on the evolving insolvency landscape in India. This blog, the first of a five-part series, will be exploring the cases that not only shaped the insolvency regime but also defined pivotal aspects of the Insolvency and Bankruptcy Code (IBC). From the sectors affected to the geographical intricacies, we'll dissect the diverse facets that contributed to the evolution of insolvency laws. Additionally, we'll analyze two significant cases – RPS Infrastructure Ltd. v.

As we continue our journey through the evolving insolvency landscape of 2023, we will delve into two landmark cases that further shaped the legal framework governing insolvency proceedings in India. Building upon the foundations laid in Part 1 of this series, we now turn our attention to M/s. Next Education India Pvt. Ltd. Vs. M/s. K12 Techno Services Pvt. Ltd and Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation India Ltd.

M/s. Next Education India Pvt. Ltd. Vs. M/s. K12 Techno Services Pvt. Ltd.

This is the 1st article in a 2-part series on employment contracts vis-à-vis CIRP. The article examines whether a resolution professional can enforce an employment contract (for an employee, not a ‘workman’) during the moratorium period.

Introduction

The modification or withdrawal of Resolution Plans under the Insolvency and Bankruptcy Code, 2016 (“Code / IBC”) had always been a contentious subject, with the National Company Law Tribunal (“Adjudicating Authority / NCLT”) and National Company Law Appellate Tribunal (“NCLAT”) taking conflicting views in the past.

The Supreme Court of India (Supreme Court) in State Tax Officer v Rainbow Papers Limited (Rainbow Papers Judgment) held that a statutory authority, in whose favor a charge is created under a statute, would be treated as a secured creditor under the Insolvency and Bankruptcy Code 2016 (IBC). The Rainbow Papers Judgment was distinguished by the Supreme Court in Paschimanchal Vidyut Vitran Nigam Limited v Raman Ispat Private Limited2 (PVVNL Judgment).

December, 2023 For Private Circulation - Educational & Informational Purpose Only A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Supreme Court: Rents receivable can be assigned by a debtor to a creditor as actionable claim. ⁎ Supreme Court: The constitutional validity of provisions of IBC pertaining to the personal guarantors upheld. ⁎ NCLAT: An operational creditor who is a participant in meetings of the CoC has no right to seek a copy of the information memorandum.

Introduction

1. Introduction 

In the case of Dilip B Jiwrajka v Union of India & Ors, a 3 (three) judge bench of the Supreme Court of India (“SupremeCourt”) has upheld the constitutional validity of Sections 95 to 100 of the Insolvency and Bankruptcy Code, 2016 (“IBC”).

Background