This newsletter covers key updates about developments in the Insolvency Law during the month of July 2021.

We have summarized the key judgments passed by the Supreme Court of India (SC), National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunals (NCLT). Please see below the summary of the relevant regulatory developments.

1) DEMAND NOTICE ISSUED BY OPERATIONAL CREDITOR BASED ON INVOICES CAN BE ISSUED IN FORM-3 INSTEAD OF FORM-4.

INTRODUCTION

This newsletter covers key updates about developments in Insolvency Law during the month of June 2021.

We have summarized the key judgments passed by the National Company Law Appellate Tribunal (“NCLAT”) and the National Company Law Tribunals (“NCLT”). Please see below the summary of the relevant regulatory developments.

1) INELIGIBILITY TO SUBMIT RESOLUTION PLAN UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (“CODE”) IS APPLICABLE AT THE TIME WHEN THE RESOLUTION PLAN IS SUBMITTED BY THE RESOLUTION APPLICANT.

INTRODUCTION

今回のニュースレターでは、2021 年 5 月の破産倒産法関連の主なアップデートについて取り扱ってい ます。インド最高裁判所（＝SC）、会社法上訴審判所（＝NCLAT）、会社法審判所（NCLT）の各裁判 所において下された重要な判決について、まとめました。

1) NO INTERFERENCE IN THE DECISION OF THE LIQUIDATOR TAKEN IN THE BEST INTEREST OF A CORPORATE DEBTOR.

Matter: Basavaraj Koujalagi & Ors. v. Sumit Binani, Liquidator of Gujarat NRE Coke Limited

Order dated: 03 May 2021.

Summary:

主に、債権者が直面している不良債権の回収問題を解決するため、2016年破産倒産法は制定されました。 本FAQでは、破産倒産法の概要、関連諸手続き等について扱っています。

1. 破産倒産法が適用されるのはどのような場合ですか？

会社、有限責任事業組合、組合、個人の倒産、清算、任意整理、破産において適用されます。

2. 破産倒産法の目的は？

財務的困難に陥っている会社の再編成および倒産処理の実施です。

3. 破産倒産法において規定されている制度的枠組みは？

On 21 May 2021, the Supreme Court of India, in the case of Lalit Kumar Jain vs. Union of India & Ors, upheld the provisions of the Insolvency and Bankruptcy Code, 2016 (“Code”) which permitted banks to proceed against personal guarantors for recovery of loans given to a company. Under the Code, the Government of India (“Government”) has been conferred powers to enforce certain provisions of the Code at different points in time. Accordingly, the Government has notified various provisions of the Code from time to time.

The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) were formulated to carry out the provisions of the Insolvency and Bankruptcy Code, 2016 (Code). These regulations are applicable to the corporate insolvency resolution process (CIRP). These FAQs deal with the overview of the CIRP Regulations and the related procedure involved.

INTRODUCTION

This newsletter covers key updates about developments in the Insolvency Law during the month of May 2021.

We have summarized the key judgments passed by the Supreme Court of India (SC), the National Company Law Appellate Tribunal (NCLAT) and various benches of the National Company Law Tribunals (NCLT). Please see below the summary of the relevant regulatory developments.

1) NO INTERFERENCE IN THE DECISION OF THE LIQUIDATOR TAKEN IN THE BEST INTEREST OF A CORPORATE DEBTOR.

When a business is distressed and is due to run out of cash, advisors are often called upon to carry out an accelerated M&A process. Whilst there may be scope for the process to be run on a solvent (share sale) basis, it may need to be implemented on an assets basis, often via a formal insolvency process. Because of the undeniable threat of insolvency, directors of distressed businesses should obtain specialist legal advice on their duties at the earliest possible stage.

Board considerations

Imagine that IPs have been appointed as administrators of an aerospace engineering company that operates around the world. The company was financially stressed before the COVID-19 pandemic and then sales dried up. With no reasonable prospect in sight, the directors filed for administration and questions have since been raised about how the directors conducted the company’s affairs shortly before it entered administration.

The temporary measure allowing companies and other qualifying bodies to hold AGMs virtually will be extended until 30 December 2020. The measure, which was introduced as part of the UK Government's response to the COVID-19 pandemic, had been due to expire on 30 September 2020.