Background:
Background
The Insolvency & Bankruptcy Code, 2016 (the “Code”) consolidated the archaic insolvency laws, provided a consolidated legislation and revolutionised the insolvency regime in India. Undoubtedly, the Code has had a significant impact on the way corporate India functions. It has been almost two years since the Code came into effect and in the year 2017 some significant amendments have been made to the Code based on inputs received from various market participants.
Introduction
In proceedings with regards to the provisions of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘IBC’) the Bombay High Court has passed a landmark judgement ruling that an application under IBC may be made even in cases where a Winding-Up petition has been admitted by a Company Court. Such an Application under the IBC, would not be permitted, only in such a scenario where final order of Winding-Up has been passed under Section 481 of the Companies Act, 1956.
Brief Facts of the Case
Introduction
In proceedings with regards to the provisions of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘IBC’) the Bombay High Court has passed a landmark judgement ruling that an application under IBC may be made even in cases where a Winding-Up petition has been admitted by a Company Court. Such an Application under the IBC, would not be permitted, only in such a scenario where final order of Winding-Up has been passed under Section 481 of the Companies Act, 1956.
Brief Facts of the Case
Introduction
The Insolvency and Bankruptcy Board of India (hereinafter referred to as the “IBBI”) has constituted the Insolvency law Committee vide notification no. 35/14/2017 dated November 16, 2017 (hereinafter referred to as the “Committee”).
In order to protect honest creditors against the unscrupulous debtors who are using insolvency as a shield to evade of their liabilities, the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) was incorporated. The IBC works in pursuit of insolvency resolution process in a time-bound manner for maximization of value of assets which promotes entrepreneurship, availability of credit and balance the interests of all the stakeholders.
Introduction –
The Delhi High Court in the case of Power Grid Corporation of India Ltd. vs Jyoti Structures Ltd.[1], vide its order dated December 11, 2017, ruled that Section 14(1)(a) of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as the ‘IBC’) would not apply to proceedings which are beneficial to the corporate debtor.
Legal provision –
Introduction:
The objective of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the ’Code’) is multi-faceted. Not only does it seek to promote entrepreneurship, by making availability of credit more transparent, but it also balances the interests of all stakeholders by consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals, in a time bound manner and for maximization of the value assets of such persons and other related matters.
Introduction
Recently, in Neelkanth Township and Construction Pvt. Ltd. v.Urban Infrastructure Trustees Ltd, Company Appeal (AT) (Insolvency) No. 44 of 2017 (Neelkanth Township), the National Company Law Appellate Tribunal (NCLAT) addressed several issues with regard to the Insolvency and Bankruptcy Code, 2016 (IBC).