Introduction

The division bench of the Supreme Court of India (Supreme Court) comprising of Hon’ble Justice Mr R.F. Nariman and Hon’ble Justice Mr Vineet Saran, in its judgment dated 30 April 2019 in J.K. Jute Mill Mazdoor Morcha v Juggilal Kamlapat Jute Mills Company Ltd & Ors has held that a trade union  is an operational creditor for the purpose of initiating the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).

Brief Facts

Introduction:

On 11 February 2019, the Supreme Court dismissed the Civil Appeal bearing No...

What is a Statutory Demand?

A Statutory Demand is a formal 21-day demand for payment issued by a creditor to a debtor.

When can a Statutory Demand be issued?

You can issue a Statutory Demand if your debt is owed from a limited company or an LLP and is a liquidated sum of more than £750 or when a creditor is owed a debt from an individual, a sole trader or a partnership as long as the debt is for a liquidated sum of more than £5000 and is unsecured.

In 2018 the Insolvency Service recorded that Company insolvencies were at their highest level since 2014, with a slight increase of 0.7% on 2017. Individual insolvencies were also at their highest level since 2011 with an increase of 16.2% on2017. There was a 19.9% increase on Individual Voluntary Arrangements (“IVAs”) which is the highest level ever recorded. With this in mind, businesses need to focus on tight cash flow across all areas and understand the importance of putting a credit policy in place.

Goodbye 2018 and hello 2019! It is that time of year to take stock and review your cash flow for 2019.

The Court of Appeal has issued a welcome clarification of rules regulating the payment of dividends to shareholders in Global Corporate Ltd v Hale [2018] EWCA Civ 2618.

Facts

The case was appealed from the ruling of Judge Matthews in the High Court [2017] EWHC 2277 (Ch). At issue were several payments made by Powerstation UK Limited (the “Company”) to Mr Hale, who was a director and shareholder of the Company at the relevant times.

Leasing of aircrafts is a prevalent market practice in the aviation industry, and all existing airline operators in India have currently leased a significant number of aircrafts in their fleet. In fact, a sizeable debt in the books of these operators is in connection with such leasehold arrangements.

On 11 October 2018, the Supreme Court (Court) vide its judgment in B.K. Educational Services Private Limited v Parag Gupta and Associates (Civil Appeal No. 23988 of 2017) clarified the applicability of Limitation Act, 1963 (Limitation Act) to the Insolvency and Bankruptcy Code, 2016 (Code). 

Background

The Insolvency and Bankruptcy Board of India (IBBI) amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) for the fourth time in 2018 on 5 October 2018 through the IBBI (Insolvency Resolution Process for Corporate