The original version of this article was first published in the Trilegal Quarterly Roundup
Introduction:
We are happy to present the tenth issue of our e-magazine – Trilegal Quarterly Roundup.
This issue features:
• Intellectual Property Diligences from an Insolvency Lens
• A Roadmap for 100% Biomass-based Energy Solutions
The Supreme Court of India (Supreme Court) in State Tax Officer v Rainbow Papers Limited (Rainbow Papers Judgment) held that a statutory authority, in whose favor a charge is created under a statute, would be treated as a secured creditor under the Insolvency and Bankruptcy Code 2016 (IBC). The Rainbow Papers Judgment was distinguished by the Supreme Court in Paschimanchal Vidyut Vitran Nigam Limited v Raman Ispat Private Limited2 (PVVNL Judgment).
In a recent development, the Supreme Court dismissed the review petitions filed against its decision in State Tax Officer v Rainbow Papers Ltd., which had disturbed the settled position that in insolvency resolution proceedings, statutory dues (including tax claims) fall in the category of operational debt. Instead, the Supreme Court held that statutory dues qualify as debts owed to a secured creditor, and a resolution plan that ignores such debts is liable to be rejected.
The original version of this article was first published in the Trilegal Quarterly Roundup
Key Developments
1. Supreme Court clarifies that under Insolvency and Bankruptcy Code, 2016, creditors hold priority over government dues
The original version of this article was first published in the Trilegal Quarterly Roundup
Key Developments
1. Additional disclosure requirements and compliances for certain foreign portfolio investors
The original version of this article was first published in the Trilegal Quarterly Roundup
This article analyses the utility of set-off provisions in commercial contracts, especially in the context of insolvency, in light of a recent Supreme Court decision. It also provides key takeaways for ensuring the feasibility of set-off provisions and making them capable of withstanding judicial scrutiny.
The original version of this article was first published in the Trilegal Quarterly Roundup.
Key Developments
1. Supreme Court clarifies the scope of adjudicating authority’s power to decide on a financial creditor’s insolvency application when debt and default have been established
The Supreme Court has, in a recent decision, sought to narrow the discretion that may be exercised by National Company Law Tribunals in evaluating a financial creditor's insolvency application. The Supreme Court has held that once such a financial creditor has been able to establish debt and default, the tribunal is left with hardly any discretion but to admit such an application. This update examines the impact of the judgment against the backdrop of the Supreme Court's earlier decision in Vidarbha Industries v Axis Bank Limited.
Introduction