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.

The Federal Court has recently confirmed that liquidators are able to assign their rights to examine people and to obtain the production of documents.

Liquidators may now find that there is greater interest from litigation funders to purchase potential claims that have not been fully investigated.

Overview

A Supreme Court in Australia has dismissed an application by a UK company’s moratorium restructuring practitioners for recognition of a UK moratorium and ordered that the company be wound up under Australian law.

The decision provides insights into the interaction between cross-border insolvencies and the winding up in Australia of foreign companies under Australian law.

Introduction

In the matter of Hydrodec Group Plc [2021] NSWSC 755, delivered 24 June 2021, the New South Wales Supreme Court:

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.

It is possible for a trustee in bankruptcy to make a claim to property held by a bankrupt on trust. For example, by lodging a caveat over a home that is held on trust.

A trustee in bankruptcy may be able to make a claim, relying on the bankrupt’s right of indemnity as trustee of the trust. This is because the bankrupt’s right of indemnity, as trustee, is itself property that vests in the trustee in bankruptcy under the Bankruptcy Act 1966.

Explaining a trustee’s right of indemnity

The passage and the working of the Insolvency and Bankruptcy Code, 2016 (Code) is an important landmark in India’s tryst with insolvency and debt restructuring laws. Further, the interpretation provided by the courts, from holding that the Code is not a means for recovery of dues to reinforcing the primacy and commercial wisdom of the committee of creditors, along with appropriate and timely amendments by the legislature in line with the object of the Code has certainly aided in the successful implementation of the Code.