Orders under Section 11 of the Electricity Act - Implications on insolvency

The Power Ministry has issued directions under Section 11 of the Electricity Act, 2003 (“Direction”), mandating all imported coal-based generating power- plants (“Gencos”) to operate and generate at their full capacity. The Direction also mandates that where the relevant Genco is undergoing corporate insolvency resolution process (“CIRP”), under IBC, the resolution professional shall take steps to make such plants functional.

Filed under:
India, Banking, Insolvency & Restructuring, Litigation, JSA, Electricity Act 2003 (India)
Authors:
Soumitra Majumdar
Location:
India
Firm:
JSA
Proposed amendments to the SARFAESI Act and debt recovery laws

Introduction

Filed under:
India, Banking, Insolvency & Restructuring, JSA, Security (finance), Interest, Debt, Debenture
Location:
India
Firm:
JSA
Corporate insolvency resolution process can be initiated separately and simultaneously against a corporate debtor and a corporate guarantor for the same debt and same default

In the case of BRS Ventures Investments Ltd. vs. SREI Infrastructure Finance Ltd. & Anr. the Hon’ble Supreme Court of India (“Supreme Court”) held that simultaneous insolvency proceedings against a borrower and a corporate guarantor can be initiated for the same debt and default; and that assets of a subsidiary do not form part of the corporate insolvency resolution process (“CIRP”) of its holding company.

Brief Facts

Filed under:
India, Insolvency & Restructuring, Litigation, JSA, Bank of India, State Bank of India, Insolvency and Bankruptcy Code (India), Supreme Court of India, Financial services banks, Financial services corporate
Authors:
Divyanshu Pandey , Shrijita Bhattacharya , Aaditya Shukla
Location:
India
Firm:
JSA