INTRODUCTION

This newsletter covers key updates about developments in insolvency law during the month of December 2021.

Creditors of English Defence League founder Tommy Robinson (real name Stephen Yaxley-Lennon) have appointed a licensed insolvency practitioner to act as his Trustee in Bankruptcy to investigate any claims against him and seek to recover any hidden assets.

Robinson applied for bankruptcy shortly after his divorce in February 2021, and while libel proceedings were ongoing against him. A bankruptcy order was made on 3 March 2021. In July 2021, Robinson was ordered to pay £100,000 in damages, together with legal costs, on top of his bankruptcy debts, which are estimated at £2m.

In what is believed to be the first reported decision on this issue, the High Court has allowed an appeal under section 205(4) of the Insolvency Act 1986 (IA 1986) against a decision of the Secretary of State to defer the dissolution of a company in liquidation.

A link to the judgement can be found here.

The facts

Ministry of Corporate Affairs proposes changes to theInsolvency and Bankruptcy Code for time bound resolution of stressed assets.

Ministry of Corporate Affairs (“MCA”) has, vide a notification dated 23 December 2021, proposed amendments to the Insolvency and Bankruptcy Code, 2016 (“Code”) to facilitate a swift admission process, streamline provisions concerning avoidable transactions and wrongful trading, and promote timely approval of resolution plans.

Administrators of Arena Television are reportedly investigating an alleged fraud involving millions of pandemic loans, where government-backed loans were offered to businesses to help them deal with the pandemic, and are suing two of the directors for breach of fiduciary duty. More companies may be in a similar position as, according to the National Audit Office, it is likely that the level of fraud in the bounce back loan scheme ranges from £3.5bn to £4.9bn. Who can claim these ill-gotten gains?

Directors’ duties

On 23 November 2021, the Supreme Court of India, in the case of TATA Consultancy Services Ltd. v. Vishal Ghisulal Jain, Resolution Professional, SK Wheels Pvt. Ltd. (TCS Case), clarified that the jurisdiction of the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (Code) cannot be invoked by the corporate debtor if the termination of a contract by a third party takes place on grounds unrelated to the insolvency of the corporate debtor.

Brief facts

INTRODUCTION

今回のニュースレターでは、2021 年 11 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。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る共に、2016 年破産倒産法の改正についても解説しています。

1) A DEL CREDERE AGENT IS NOT AN OPERATIONAL CREDITOR UNDER THE CODE

Matter: Alturas Trading Corp. v. VRMX Concrete India Pvt. Ltd.

Order dated: 04 October 2021

Summary:

INTRODUCTION

This newsletter covers key updates about developments in the insolvency law during the month of November 2021.

INTRODUCTION

今回のニュースレターでは、2021 年 10 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。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る共に、2016 年破産倒産法の改正についても解説しています。

1) GOVERNMENT AMENDS THE RULES RELATING TO INSOLVENCY OF CORPORATE DEBTOR TO ENSURE TIME BOUND INSOLVENCY PROCESS.

Notification dated: 30 September 2021.

The problem of Non-performing Assets (NPAs) in the Indian banking system is one of its foremost predicaments.