Determination of classes of shareholders and creditors in a scheme of arrangement under SEC.391-394 of the Companies Act,1956

The court has to classify creditors or members if there are such classes and before sanctioning the scheme, to see that their respective interest are taken care of.1

Filed under:
India, Insolvency & Restructuring, Litigation, Singh & Associates, Shareholder, Interest, Articles of association, Supreme Court of India
Location:
India
Firm:
Singh & Associates
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