Introduction

Recently, by a judgment dated 30 May 2022, a three-judge bench of the Supreme Courtin the case of Kotak Mahindra Bank Limited versus A. Balakrishnan & Anr (Judgment dated 30 May 2022 in Civil Appeal No. 689 of 2021) held that a recovery certificate issued the Recovery of Debts and Bankruptcy Act, 1992 (RDB Act) would qualify as a “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), and give rise to a fresh cause of action under section 7 of the IBC.

The Supreme Court of India in Indian Overseas Bank v M/s RCM Infrastructure Ltd. & Anr. held that a sale under section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”), would be regarded as complete only upon receipt of full consideration towards the sale properties.

INTRODUCTION

India has been grappling with an increase in non-performing assets (NPA) and defaults of loans since at least the 1990s. As per recent reports, gross NPAs of public sector banks have doubled in the last 7 (seven) years, 1 which is indicative of the issues being faced by lenders against recalcitrant borrowers.

Facts

The Supreme Court of India (“SC”) in the judgment New Delhi Municipal Council v. Minosha India Limited, dated 27 April, 2022, Civil Appeal No. 3470 of 2022 has clarified the position on the applicability of the Limitation Act, 1963 (“Act”) and the Insolvency and Bankruptcy Code, 2016 (“IBC”). 

Facts and Background

New requirements brought in during the Covid-19 pandemic have added to the potential procedural pitfalls facing creditors seeking a winding up order in recent months. They have also led to quite a lot of adjourned hearings and delays.

Facts

Facts

Dispute Resolution analysis: Deputy ICCJ Schaffer has dismissed an application brought by the Respondents to a claim brought by the Joint Liquidators of BHS Group Ltd for wrongful trading. The failure to plead the relevant quantum of the claim was not a deficiency which merited strike-out.

Re BHS Group Ltd [2021] EWHC 3501 (Ch)

What are the practical implications of this case?