Background

Introduction

The start of December 2016 saw major developments regarding ease of doing business in India:

The insolvency and bankruptcy regime in India has historically been fragmented, involving a number of regulations implemented by several regulatory authorities and adjudication forums. The introduction of the Insolvency and Bankruptcy Code, 2016 (Insolvency Code) is a significant development aimed at a comprehensive, centralized regime and an efficient procedural framework.

The Insolvency Code is intended to integrate the regulatory framework provided under:

I. Relief for foreign investors: Supreme Court of India sets aside the Bombay High Court ruling in IDBI Trusteeship Services case The Supreme Court of India in the case of IDBI Trusteeship Services Limited vs. Hubtown Limited (decided on November 15, 2016) set aside a Bombay High Court ruling which had garnered quite a lot of attention among the foreign investors and in the legal circles. N e d e r l a n d s e F i n a n c i e r i n g s- M a a ts c h a p p i j v o o r Ontwikkelingslanden N.V.

The Indian Insolvency and Bankruptcy Code 2016 (Code) introduces a completely new insolvency and resolution regime for India. Key provisions of the Code and related regulations came into effect this month, the latest of them being the provisions relating to the liquidation of corporates and related regulations which came into effect on 15th December. The provisions of the Code that are now in effect introduce a new corporate insolvency resolution process and liquidation process, along with corresponding rules and regulations.

Introduction

Background and need

From the Justice Eradi Committee report of 1999 to the Department of Financial Services’ indicator of October 2015, the pendency of winding-up cases in India has been piling up to reach an alarmingly high level of backlog [see end note 1]. The World Bank has ranked India on the 130^th position among 189 economies as it takes more than four years on an average to resolve insolvency in India [see end note 2].

The three-Judge Bench of the Supreme Court of India in the case of Madura Coats Limited (“the Appellant”) vs.

Introduction
Constitution of Bankruptcy Board and appointment of members
Enforcement of Security Bill
Comment

Introduction

Introduction