India's Supreme Court on Monday dismissed Adisri Commercial’s appeal against the admission of insolvency proceedings against SREI Infrastructure Finance (SIFL) and SREI Equipment Finance (SEFL). It imposed a cost of Rs one lakh on the Srei Group shareholder for filing such a frivolous petition, the Economic Times of India reported.
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India
The bankruptcy court in Allahabad admitted Jaiprakash Associates Ltd (JAL) for corporate insolvency almost six years after ICICI Bank filed an application, the Economic Times of India reported. The tribunal, while admitting the company under the Corporate Insolvency Resolution Process (CIRP) has also appointed Bhuvan Madan as interim resolution professional (IRP) of the company, said two people aware of the development. The private sector lender had approached the tribunal after the company failed to pay its dues of about Rs 3,000 crore.
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In a bid to check unnecessary pressure on GST payers against early recovery of dues, the Central Board of Indirect Taxes and Customs (CBIC) has put in place guidelines mandating senior officers to initiate recovery action quickly only in rare cases and that too after clearly stating the reasons, the Times of India reported. The law allows central GST authorities to initiate recovery after three months in case the dues remain unpaid after an order is passed.Only in exceptional circumstances can recovery be initiated earlier.
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Asset reconstruction companies (ARCs) are being misused by "tainted" promoters to enter the bankruptcy process after leading their firms to loan defaults, a deputy governor at the Reserve Bank of India said, Reuters reported. Promoters in an Indian market are large shareholders who can influence company policy and, according to regulatory definitions, are prospective owners or directors of the company. There is a section under the Insolvency and Bankruptcy Code "specifically meant to keep out such promoters, said M.
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Creditors have been able to recover nearly half their claims under the Insolvency and Bankruptcy Code (IBC) when the resolution has been completed within the 330-day deadline, but delays lowered the proportion of money they got back, The Economic Times reported. Creditors recovered as much as 49% of claims when the IBC process was finished on time, but this dropped to 26% when it took 600 days or more, according to Insolvency and Bankruptcy Board of India (IBBI) data. The IBC was introduced eight years ago, in May 2016.
Foreigners pulled money out of their emerging market portfolios in April on concerns of a tighter monetary policy path in the U.S., with outflows from stocks in India and Indonesia leading the way, data from a banking trade group showed, Reuters reported. The Institute of International Finance data showed net non-resident portfolio flows for April came in at -$0.7 billion, the first monthly outflow since October. The figure compares with net inflows of $30.2 billion in March and a $16.3 billion inflow in April 2023, the IIF data show.
Engine Lease Finance BV, an aircraft engine lessor of SpiceJet, has moved an insolvency plea before the NCLT against the debt-ridden air carrier over non-payment of over USD 12 million (around Rs 100 crore), the Economic Times of India reported. Engine Lease Finance (ELF) has leased eight engines to SpiceJet. Along with interest and rental, ELF has claimed an amount of around USD 16 million. The matter was listed before a Delhi-based bench of the National Company Law Tribunal (NCLT) on Wednesday, which heard it briefly.
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Insolvency Appellate Tribunal NCLAT has upheld orders approving Adani Goodhomes' resolution plan for realty firm Radius Estate with a 93 percent haircut for creditors, the Economic Times of India reported. A two-member bench comprising the NCLAT Chairman rejected the petitions by two dissenting financial creditors, saying it was "commercial wisdom" of the Committee of Creditors (CoC), which approved the payout to different creditors.
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The Kolkata bench of the bankruptcy court halted the corporate insolvency resolution process (CIRP) of thermal power company Hiranmaye Energy on the promoter's plea that lenders should consider its ₹1,101.5 crore settlement offer, which is about one-fifth of the lenders' debt, showed a tribunal order, the Economic Times of India reported. Meanwhile, over a dozen power-generating companies had submitted expressions of interest for the company.
The Pre-packaged Insolvency Resolution Process (PPIRP) has resulted in the full settlement of operational creditors' claims in five cases, the Economic Times of India reported. They are - Amrit India, Sudal Industries, Shri Rajasthan Syntex, Enn Tee International and GCCL Infrastructure and Projects. The government enacted the Insolvency and Bankruptcy Code (IBC) in August 2021 and introduced the PPIRP for micro, small and medium enterprises. According to the newsletter of the Insolvency and Bankruptcy Board of India (IBBI), these five cases resulted in a 25% realisation.
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