India

The number of resolved cases under the Insolvency and Bankruptcy Code (IBC) may beat last year's record in FY25, the chief of the bankruptcy regulator said on Friday, the Economic Times of India reported. About 270 insolvency cases were resolved under the IBC last fiscal year, Insolvency and Bankruptcy Board of India (IBBI) chairman Ravi Mittal said at an event organised by the Institute of Chartered Accountants of India (ICAI). This was way beyond the annual average of 125 cases that saw resolution since the IBC was rolled out in late 2016, he added.

The National Company Law Tribunal (NCLT) has ordered initiation of insolvency resolution proceedings against Simbhaoli Sugars Ltd on a petition filed nearly six years ago. The plea was filed in September 2018 by erstwhile Oriental Bank of Commerce which has been merged with state-owned Punjab National Bank (PNB) now, the Economic Times of India reported. The lender had sought initiation of Corporate Insolvency Resolution Process (CIRP) against the company under section 7 of the Insolvency and Bankruptcy Code. "...

Lenders have rejected the one-time settlement offered by Jaiprakash Associates Ltd in the insolvency case filed against it, the Times of India reported. After the National Company Law Tribunal (NCLT) ordered the initiation of bankruptcy proceedings against the company last month on a petition filed by lenders led by ICICI Bank in 2018, its suspended board of directors challenged the order in NCLAT, the appellate tribunal. During a hearing on June 10, NCLAT asked JAL to increase the amount it was to pay upfront in its original settlement offer.

An India government investigation found lapses in the corporate governance of Byju’s, but cleared the struggling online-education startup of financial fraud, the Economic Times of India reported. The yearlong probe by the Ministry of Corporate Affairs found no evidence of wrongdoing such as siphoning of funds or manipulation of financial accounts, people familiar with the matter said. Still, it discovered governance shortcomings that contributed to the startup’s mounting losses, the people said, asking not to be named as the investigators’ report isn’t public yet.

An India government investigation found lapses in the corporate governance of Byju’s, but cleared the struggling online-education startup of financial fraud, Bloomberg News reported. The yearlong probe by the Ministry of Corporate Affairs found no evidence of wrongdoing such as siphoning of funds or manipulation of financial accounts. Still, it discovered governance shortcomings that contributed to the startup’s mounting losses, the people said, asking not to be named as the investigators’ report isn’t public yet.

India’s economic growth is inching toward 8% on a sustained manner, but it is essential to keep inflation under check, Reserve Bank of India Governor Shaktikanta Das said on Tuesday, Bloomberg News reported. “India is at the threshold of a major structural shift in its growth trajectory,” Das said in his address to the Bombay Chamber of Commerce and Industry. “We are moving toward annual growth rate of 8%,” he said. The economy grew at an average 8.3% in the past three years and in 2023-24 contributed 18.5% to global growth, Das added.

Jaiprakash Associates Ltd (JAL) has offered a revised one-time settlement, or OTS, which includes sale of its assets to Dalmia Cement and Rs 500-crore upfront deposit, to its lenders, the Economic Times of India reported. The debt-ridden construction and infrastructure company - which was admitted for insolvency resolution proceedings earlier this month - informed the National Company Law Appellate Tribunal (NCLAT) on Monday that it has revised its offer after the appellate tribunal asked it to consider a higher amount of deposit.

Infrastructure investment trusts (InvITs) are enjoying immunity from insolvency proceedings and should be brought under the Insolvency and Bankruptcy Code, a top official from SBI said on Friday, the Economic Times of India reported. Ashwini Kumar Tewari, the managing director of the bank, said lenders need the assurance of being able to recover their dues from InvITs in case of a default and added that they are in touch with the Reserve Bank and the government on the same.

Uttar Pradesh government’s rehabilitation package for developers of housing projects undergoing insolvency proceedings has been extended by two weeks, the Economic Times of India reported. Builders can opt for the package if they choose to withdraw their cases with National Company Law Tribunal (NCLT) or in different courts, Noida Authority notified on Thursday. The rehabilitation package was introduced by the state government in December last year. It gave several concessions to developers including a two year interest waiver and penalties imposed during the Covid-19 pandemic.

In a landmark judgment, the Supreme Court has provided comprehensive clarity on the application of set-offs within the framework of the Insolvency and Bankruptcy Code (IBC), particularly during the Corporate Insolvency Resolution Process (CIRP). The recent ruling in the case of Bharti Airtel Ltd and Anr. v Vijaykumar V. Iyer addresses a frequently contested issue, offering a detailed analysis of different types of set-offs and their implications, the Times of India reported.