Who is a corporate debtor?

A corporate debtor refers to a company, a limited liability partnership or any person who owes a debt to its creditors. Under the Insolvency and Bankruptcy code, a corporate debtor is liable to the financial and operational creditors for the payment of such debt.

What types of creditors are there with respect to a corporate debtor?

The Hon’ble Supreme Court vide its order dated April 18, 2022 in State Bank of India Vs Krishidhan Seeds Private Limited has observed that Section 18 of the Limitation Act, 1963 is applicable to proceedings under the Insolvency and Bankruptcy Code, 2016.

Brief Facts

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.

このニュースレターは、2022年4月のインドの破産法の発展に関する重要な最新情報をカバーしています。

The Insolvency and Bankruptcy Code, 2016 read with, the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2020, establish a procedure for the voluntary liquidation of solvent corporate persons.

Between the lines... For Private Circulation-Educational & Information purpose only Vaish Associates Advocates… Distinct. By Experience. I. NCLT: Corporate debtor cannot be sent into liquidation just because liquidation value is more than the value of the resolution plan. The National Company Law Tribunal, Kolkata (“NCLT”) has in its order dated April 6, 2022, in the matter of CFM Asset Reconstruction Private Limited v. S. S. Natural Resources Private Limited and Another [IA No. 538/KB/2021 in CP (IB) No.

The Hon’ble Supreme Court has recently upheld a Judgement of the Division Bench of Tripura High Court in the case of Sri Subhankar Bhowmik vs Union of India(1) wherein it was held that a Decree Holder cannot be treated at par with Financial Creditors in a Corporate Insolvency Resolution Process (CIRP) initiated under the Insolvency and Bankruptcy Code, 2016 (Code).

Quite recently, a two Judges’ bench of the Hon’ble Apex Court in Indian Overseas Bank v. M/s. RCM Infrastructure Ltd. & Anr., Civil Appeal No. 4750/2021 (dated 18.05.2022), inter alia, determined on the issue of applicability of provisions under Section 14 of the Insolvency and Bankruptcy Code, 2016/ IBC/ Code to a proceeding initiated in terms of the SARFAESI Act, in particular, auction sale.

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”). 

Introduction

2016年破産倒産法については、導入以来、継続して改正が行われてきています。2018年倒産破産法(第2次修正)法(以下「2018年改正法」)により、不動産プロジェクトの割当者(以下「住宅購入者」)は、「金融債権者」の範囲に含まれ、不動産開発業者に対する破産手続を開始することができるようになりました。その後、当該2018年改正法については、Pioneer Urban Land and Infrastructure Ltd. v. Union of Indiaにて最高裁で争われ、最終的に憲法上の有効性が認められました。