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IBC: Resolution Plan Involving ‘Combination’ Must Clear CCI Hurdle First

The legal framework w.r.t. law of insolvency in India has seen considerable progress since the introduction of Insolvency and Bankruptcy Code, 2016 (“IBC”). The Legislature, taking cue from various judgments passed by the courts and the grey areas identified during the implementation of the provisions of IBC, introduced various amendments from time to time. However, notwithstanding such amendments, various legal questions involving interpretation and implementation of provisions of IBC keep arising posing challenges before the Courts to resolve the same.

India, Competition & Antitrust, Insolvency & Restructuring, Litigation, Singhania & Partners LLP, Competition Commission of India, Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
New York Bankruptcy Court: Lockup Provision in Proposed Settlement Agreement Violated Bankruptcy Code's Disclosure and Solicitation Requirements

A bedrock principle underlying chapter 11 of the Bankruptcy Code is that creditors, shareholders, and other stakeholders should be provided with adequate information to make an informed decision to either accept or reject a chapter 11 plan. For this reason, the Bankruptcy Code provides that any "solicitation" of votes for or against a plan must be preceded or accompanied by stakeholders' receipt of a "disclosure statement" approved by the bankruptcy court explaining the background of the case as well as the key provisions of the chapter 11 plan.

USA, New York, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy
Whether the limitation to file an appeal under IBC will commence on the date of pronouncement of order or from the date when contents are known to the aggrieved party?

The National Company Law Appellate Tribunal (New Delhi Bench) (“NCLAT”) in two recent judgments passed in Raiyan Hotels and Resorts Pvt. Ltd. vs. Unrivalled Projects Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 1071 of 2023] and Aryan Mining & Trading Corpn Pvt. Ltd. vs Kail limited and Anr. [Company Appeal (AT) (Insolvency) No.

India, Company & Commercial, Insolvency & Restructuring, Litigation, Singhania & Partners LLP, Insolvency, Supreme Court of India, National Company Law Tribunal
Whether the limitation to file an appeal under IBC will commence on the date of pronouncement of order or from the date when contents are known to the aggrieved party?

INTRODUCTION: 

India, Insolvency & Restructuring, Litigation, Singhania & Partners LLP, Insolvency, Supreme Court of India, National Company Law Tribunal
U.S. Supreme Court Rules Appellate Protection of Bankruptcy Property Sale Is Subject to Waiver and Estoppel

In Short

The Situation: The U.S. Supreme Court considered whether § 363(m) of the Bankruptcy Code, which limits a party's ability to undo an asset transfer made to a good-faith purchaser in a bankruptcy case, is jurisdictional.

USA, Insolvency & Restructuring, Litigation, Jones Day, US Congress, Supreme Court of the United States
Default Under Assumed Lease Need Not Be Material or Ongoing to Trigger Landlord's Entitlement to Adequate Assurance of Future Performance

The ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to assume, assume and assign, or reject executory contracts and unexpired leases is an important tool designed to promote a "fresh start" for debtors and to maximize the value of the bankruptcy estate for the benefit of all stakeholders. However, the Bankruptcy Code establishes strict requirements for the assumption or assignment of contracts and leases.

USA, Insolvency & Restructuring, Litigation, Real Estate, Jones Day
Effect of breach of settlement agreement under Insolvency & Bankruptcy Code

The Insolvency and Bankruptcy Code, 2016 (“IBC”) being a relatively new legislation, has witnessed inconsistent interpretation of its various provisions, especially in respect of certain legal issues, which are grey areas i.e. the issues which are not specifically dealt with under the existing provisions of IBC. One of such interesting legal issue is effect of breach of settlement agreements, entered into between two parties, where one party promises to pay a certain amount to the other party.

India, Insolvency & Restructuring, Litigation, Singhania & Partners LLP, National Company Law Tribunal
Whether operational creditor includes a purchaser of goods and services

Introduction:

In a recent judgment, the Supreme Court of India, while keeping up the efforts of plugging various loopholes in Insolvency & Bankruptcy Code, 2016 (“Code”), decided an interesting legal issue relating to the scope of Section 5(20) of the Code, which provides the definition of “operational creditor”.

The Apex Court, in the case of Consolidated Construction Consortium Limited vs. Hitro Energy Solutions Private Limited, was seized of the following legal questions:

India, Insolvency & Restructuring, Litigation, Singhania & Partners LLP, Supreme Court of India
In Brief: U.S. Supreme Court Declines Review of High-Profile Bankruptcy Rulings

Madoff

USA, Insolvency & Restructuring, Litigation, Jones Day, Supreme Court of the United States, Second Circuit
Maintainability Of Application Under Section 8 Of Arbitration & Conciliation Act, 1996 In An Insolvency Proceeding

INTRODUCTION:

The Supreme Court in a recent judgment of Indus Biotech Pvt. Ltd. vs. Kotak India Venture (Offshore) Fund [AIR 2021 SC 1638] has settled an important question of law: ‘whetheran application filed under Section 8 of Arbitration & Conciliation Act, 1996 (‘A&C Act’) can be said to be maintainable in a proceeding initiated under Insolvency and Bankruptcy Code, 2016 (‘IBC’)’.

India, Arbitration & ADR, Insolvency & Restructuring, Litigation, Singhania & Partners LLP