The Insolvency and Bankruptcy Board of India has amended the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 with effect from February 7, 2018, and has brought into force the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2018[1]. The salient features of the new regulations have been discussed hereunder.

Appointment of registered valuers

Enforced with the objective of time-bound insolvency resolution and maximization of assets, the Insolvency Bankruptcy Code, 2016 (hereinafter referred to as “IBC”), in order to facilitate the process of insolvency resolution, has provision for appointment of an insolvency resolution professional (hereinafter referred to as “IRP”).

Background:

The Hon’ble Calcutta High Court on February 2, 2018, upheld the validity of Section 7, 8 and 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as ‘IBC 2016’ or ‘the Code’) in the case of Akshay Jhunjhunwala & anr. v. Union of India[1].

Introduction

Introduction:

Incorporated with the objective of promoting maximization of value of assets in a time bound manner, the Insolvency and Bankruptcy Code (hereinafter referred to as “IBC”) works towards effective protection to honest creditors against unscrupulous debtors who may misuse insolvency to evade of their liabilities. The conducive and efficacious implementation of the IBC has instilled confidence in the creditors for a systematic and speedy reform. The remedy under the IBC is also available to the unpaid employees of the debtor which is now being recognized judicially as well.

Introduction –

Introduction –

The Principal Bench of the National Company Law Tribunal (hereinafter referred to as the ‘NCLT’), in the case of Alchemist Asset Reconstruction Company Limited (herein after referred to as AARCL) vs Hotel Gaudavan Pvt. Ltd (herein after referred to as HGPL)[1], entertained the first resolution plan filed before it, which was the first to have been submitted since the implementation of the Insolvency and Bankruptcy Code, 2016.

FACTS

Hamera International Private Limited executed an agreement with, Macquarie Bank Limited, Singapore (hereinafter called ‘appellant’), where the appellant purchased the original supplier's right, title and interest in a supply agreement in favour of Shilpi Cable Technologies (hereinafter referred to as the “respondent”).

Background: