One of the key issues in the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (code), is the status and resolution of disputed claims, Vantage Asia reported. This has now been set to rest by the Supreme Court in the recent Essar Steel case. The National Company Law Appellate Tribunal (NCLAT), in the Essar Steel case, had held that disputed claims can be decided by the appropriate forums after the expiry of the moratorium period.

Insolvency proceedings have been initiated against another company of crisis-hit 3C real estate group, The Times of India reported. In the wake of a plea by a buyer who has not received his plot, the National Company Law Tribunal (NCLT) appointed an insolvency resolution professional (IRP) to resolve the financial liabilities of Three C Homes Pvt Ltd, the 3C group subsidiary that is building Lotus City, a residential plot scheme in Sector 22A of Yamuna Expressway. The IRP has a maximum 270 days for the resolution, following which the project could be pushed into liquidation.

A tribunal has started insolvency proceedings in the case of Chennai-based wind turbine manufacturer ReGen Powertech, emphasising the dire times the wind energy sector is passing through, The Economic Times reported. The National Company Law Tribunal ordered the commencement of a corporate insolvency resolution process of ReGen Powertech on December 9, the interim resolution professional said in a notice dated December 13 in the Times of India. “This does not come as a surprise… They have not been able to ramp up their order book since 2017,” said an industry expert.

The insolvency resolution of Ruchi Soya under the Insolvency and Bankruptcy Code (IBC) is likely to be completed on December 16, a source told CNBC-TV18. The dues of lenders to Ruchi Soya are also expected to be settled on the same day, the sources added. The National Company Law Tribunal (NCLT), in July, cleared Patanajali Ayurveda’s takeover of Ruchi Soya under the IBC, and approved its resolution plan in September, moneycontrol.com reported. Patanjali secured funds from the State Bank of India, Union Bank, Punjab National Bank, Syndicate Bank and Allahabad Bank before.

Promoters of Essar Steel are not yet off the hook despite banks getting large parts of their dues back, The Times of India reported. The Lakshmi Mittal-owned metals group ArcelorMittal last weekend transferred over Rs 39,000 crore to lenders for the steel company he won after a legal battle that lasted over two years. Another Rs 2,500 crore will be repaid from the steel company’s internal accruals.

Moody’s Investors Service said funding challenges at India’s non-bank financing companies are increasing the risk of asset quality deterioration at banks, which are already saddled with the world’s worst bad-debt pile, Bloomberg News reported. Risks of loan losses at shadow financiers will weaken their financials, prompting banks to further reduce lending to them and worsening their funding stress, the ratings company said in a report dated Friday.

Indian Finance Minister Nirmala Sitharaman today introduced a bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code, the Times of India reported. The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 was approved by the Union Cabinet yesterday. The amendments in the law seek to remove bottlenecks and streamline the corporate insolvency resolution process, wherein successful bidders will bering fenced from any risk of criminal proceedings for offenses committed by previous promoters of companies concerned.