HSA Advocates’ Post

The March edition of our monthly ‘Restructuring & Insolvency Newsletter’ discusses several topical judgments by NCLT, NCLAT and the courts. The team (Abhirup Dasgupta, Pratik Ghose, Ishaan Duggal, Avishek Roy Chowdhury, and Ruchi Goyal) has also analyzed some of the Resolution Plans approved by the NCLT recently, and provided details on the companies admitted to insolvency or directed to be liquidated in September 2023.   Statutory updates 1.      IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2024 2.      IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2024 3.      IBBI (Insolvency Professionals) (Amendment) Regulations, 2024 4.      IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024 5.      IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024    Recent judgments 1.      Greater Noida Industrial Development Authority v. Prabhjit Singh Soni & Anr 2.      Vijay Saini v. Shri Devender Singh & Ors 3.      Navyuga Engineering Company Ltd v. Mr. Umesh Garg & Ors    Recent deals 1.      Resolution of Sarga Hotel Pvt Ltd 2.      Resolution of Balaji Paper and Newsprint Pvt Ltd 3.      Resolution of Magppie International Ltd   Companies admitted to insolvency in JAN-FEB 2024 1.     Companies admitted to insolvency 2.     Companies directed to be liquidated     Click here to read more: https://lnkd.in/gRq3b4cc #restructuring #insolvencyandbankruptcy #statutory #update #judgements #orders #deals #liquidation #insolvency #resolutionprocess #nclat  #india  #Law #lawstudents #lawyers #lawfirmmarketing #lawyerlife #lawyering #legalinsights #generalcounsel #lawsuits  #india #inhousecounsel #legalprofession #legal #law #lawyers #lawfirms #lawdotasia

The September edition of our monthly ‘Restructuring & Insolvency Newsletter’ discusses several topical judgments by NCLT, NCLAT and the courts. The team (Abhirup Dasgupta, Ishaan Duggal, and Ruchi Goyal) has also analyzed some of the Resolution Plans approved by the NCLT recently, and provided details on the companies admitted to insolvency or directed to be liquidated in August 2024. Statutory Updates -- 1. Discussion Paper on “MSME Registration and disclosure framework under CIRP” dated August 23, 2024 Recent judgments -- 1. V.S. Palanivel v P. Sriram CS, Liquidator – Supreme Court 2.  Vijay Kumar Singhania v Bank of Baroda & Ors. [NCLAT, New Delhi 3.  Asha Chopra & Ors. v M/s Hind Motors India Ltd – NCLAT, New Delhi  Recent deals -- 1.  Resolution of Lanco Amarkantak Power Ltd 2. Resolution of Monarch Brookefields LLP Companies admitted to insolvency in August 2024 Companies admitted to insolvency Companies directed to be liquidated    Click here to read more: https://lnkd.in/g_kHtics #restructuring #insolvencyandbankruptcy #statutory #update #judgements #orders #deals #liquidation #insolvency #resolutionprocess #nclat  #india #Law #lawstudents #lawyers #lawfirmmarketing #lawyerlife #lawyering #legalinsights #generalcounsel #lawsuits  #india #inhousecounsel #legalprofession #legal #law #lawyers #lawfirms #lawdotasia

𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟭𝟮𝗔: 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗪𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹 𝗗𝘂𝗿𝗶𝗻𝗴 𝗟𝗶𝗾𝘂𝗶𝗱𝗮𝘁𝗶𝗼𝗻 𝗣𝗲𝗿𝗶𝗼𝗱 - 𝗡𝗖𝗟𝗔𝗧 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹 𝗕𝗲𝗻𝗰𝗵 Abhay Shrotiya - In the recent case of 𝘈𝘴𝘩𝘢 𝘊𝘩𝘰𝘱𝘳𝘢 & 𝘖𝘳𝘴. 𝘷𝘴 𝘔/𝘚. 𝘏𝘪𝘯𝘥 𝘔𝘰𝘵𝘰𝘳𝘴 𝘐𝘯𝘥𝘪𝘢 𝘓𝘪𝘮𝘪𝘵𝘦𝘥 & 𝘖𝘳𝘴., the principal bench of the National Company Law Appellate Tribunal (NCLAT) in New Delhi, comprising Justice Ashok Bhushan, Barun Mitra, and Arun Baroka, ruled that an application for withdrawal under Section 12A of the Insolvency and Bankruptcy Code (IBC) cannot be permitted once the liquidation process has commenced. Section 12A allows for the withdrawal of an insolvency application if at least 90% of the Committee of Creditors (CoC) approves the request. The bench clarified that Section 12A was intended to facilitate the withdrawal of insolvency applications during the Corporate Insolvency Resolution Process (CIRP). Once the CIRP concludes, the CoC ceases to exist, which is crucial for approving the withdrawal of the insolvency application. Consequently, if the CoC is no longer in existence, the insolvency application cannot be withdrawn during the liquidation phase under Section 12A, as the authority to withdraw rests solely with the CoC. This judgment from the NCLAT provides important clarity regarding the withdrawal of insolvency applications under Section 12A when a company enters liquidation, thereby establishing a clear legal position. 𝗖𝗮𝘀𝗲 𝗗𝗲𝘁𝗮𝗶𝗹𝘀: Case Title: Asha Chopra & Ors. vs M/S. Hind Motors India Limited & Ors. Case Number: Company Appeal (AT) (Insolvency) No. 1425-1428 of 2024 & I.A. No. 5180-5183 of 2024 mentblue #Section12A #IBC #NCLAT #Liquidation

The October edition of our monthly ‘Restructuring & Insolvency Newsletter’ discusses several topical judgments by NCLT, NCLAT and the courts. The team (Abhirup Dasgupta, Ishaan Duggal, and Ruchi Goyal) has also analyzed some of the Resolution Plans approved by the NCLT recently, and provided details on the companies admitted to insolvency or directed to be liquidated in September 2024. Statutory Updates 1. Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2024 dated September 24, 2024. Recent judgments 1. SBS Holdings, Inc. v Mohan Lal Jain, Liquidator of SBS Transpole Logistics Pvt Ltd – NCLAT, New Delhi 2. Rohit J Vora v Insolvency and Bankruptcy Board of India, New Delhi – High Court of Bombay 3. Ramesh Kumar Chugh v Assets Care & Construction Enterprise Ltd – NCLAT, New Delhi 4. State Bank of India v India Power Corporation Ltd – Supreme Court 5. Samrat Restaurant v Brewcrafts Microbrewing Pvt Ltd Recent deals 1. Resolution Of Sevenhills Healthcare Pvt Ltd 2. Resolution of Unitech Machines Ltd 3. Resolution of Nagai Power Pvt Ltd Companies admitted to insolvency and liquidation process in September 2024    Click here to read more: https://lnkd.in/egAW_hUj #restructuring #insolvencyandbankruptcy #statutory #update #judgements #orders #deals #liquidation #insolvency #resolutionprocess #nclat  #india #Law #lawstudents #lawyers #lawfirmmarketing #lawyerlife #lawyering #legalinsights #generalcounsel #lawsuits  #india #inhousecounsel #legalprofession #legal #law #lawyers #lawfirms #lawdotasia

The November edition of our monthly ‘Restructuring & Insolvency Newsletter’ discusses several topical judgments by NCLT, NCLAT and the courts. The team (Abhirup Dasgupta, Ishaan Duggal, and Ruchi Goyal) has also analyzed some of the Resolution Plans approved by the NCLT recently, and provided details on the companies admitted to insolvency or directed to be liquidated in October Statutory Updates --- 1. Insolvency and Bankruptcy Board of India – Discussion Paper on issues related to Real Estate dated November 07, 2024 2. Insolvency and Bankruptcy Board of India – Discussion Paper on Mediation by Operational Creditors before approaching the AA under Section 9 of the IBC dated November 04, 2024  Recent judgments --- 1. GLAS Trust Company LLC v BYJU Raveendran & Ors. – Supreme Court of India 2. State Bank of India & Ors. v The consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch & Anr. – Supreme Court of India 3. Noida Special Economic Zone Authority v Manish Agarwal and Ors. – Supreme Court of India 4. Narottamka Trade & Vyapaar Pvt Ltd v SPP Insolvency Professionals LLP Liquidator Kamachi Industries Ltd and Anr. – NCLAT Chennai  Recent deals --- 1. Resolution of Dolphin Offshore Shipping Ltd 2. Resolution of Superways Enterprises Pvt Ltd 3. Resolution of Nagai Power Pvt Ltd Companies admitted to insolvency in October   Click here to read more: https://lnkd.in/gatPRhbE #restructuring #insolvencyandbankruptcy #statutory #update #judgements #orders #deals #liquidation #insolvency #resolutionprocess #nclat

📢 𝐈𝐁𝐁𝐈 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐬 𝐂𝐥𝐚𝐫𝐢𝐭𝐲 𝐚𝐧𝐝 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐟𝐨𝐫 𝐈𝐧𝐬𝐨𝐥𝐯𝐞𝐧𝐜𝐲 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥𝐬 𝐰𝐢𝐭𝐡 𝐍𝐞𝐰 𝐆𝐮𝐢𝐝𝐞𝐥𝐢𝐧𝐞𝐬 📢 On February 1, 2024, the Insolvency & Bankruptcy Board of India (IBBI) issued a pivotal circular to address key operational aspects for Insolvency Professionals (IPs), marking a significant move towards transparency and efficiency in insolvency processes under the Insolvency and Bankruptcy Code, 2016. #Insolvency #IBBI #ProfessionalGuidance 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐈𝐁𝐁𝐈 𝐂𝐢𝐫𝐜𝐮𝐥𝐚𝐫:Professional Services in Resolution 𝑷𝒍𝒂𝒏 𝑰𝒎𝒑𝒍𝒆𝒎𝒆𝒏𝒕𝒂𝒕𝒊𝒐𝒏: The circular clarifies IPs can provide professional services related to the implementation of a resolution plan post-approval by the Adjudicating Authority (AA), given the services are detailed in the approved plan. This aims to leverage IPs’ familiarity with the corporate debtor's business nuances during the transitional phase. 𝑪𝒍𝒂𝒓𝒊𝒇𝒊𝒄𝒂𝒕𝒊𝒐𝒏 𝒐𝒏 𝑩𝒊𝒍𝒍𝒊𝒏𝒈 𝒂𝒏𝒅 𝑰𝒏𝒗𝒐𝒊𝒄𝒊𝒏𝒈 𝑪𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆: Addressing invoicing practices for services availed by IPs, the circular allows bills or invoices to be raised in the name of the Insolvency Professional Entity (IPE), the professional, or their firm. This adjustment ensures adherence to the Code of Conduct while accommodating market practices. 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲 𝐚𝐧𝐝 𝐏𝐮𝐫𝐩𝐨𝐬𝐞: Issued under Section 196 of the Insolvency and Bankruptcy Code, 2016, the circular reflects IBBI's dedication to refining insolvency proceedings. Drawing from stakeholder feedback and practical experiences, these clarifications aim to facilitate smoother and more efficient conduct by IPs. 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬: These updates not only enhance the operational clarity for IPs but also contribute to the broader goal of improving the #easeofdoingbusiness . By outlining explicit conduct guidelines, the IBBI strengthens the framework within which IPs operate, ensuring a more streamlined resolution process for distressed entities. The IBBI's proactive approach underscores the evolving landscape of insolvency and bankruptcy processes in India. Insolvency Professionals and related stakeholders are encouraged to align their practices with these clarifications to ensure smoother insolvency proceedings. How do you see these clarifications impacting the efficiency and transparency of insolvency processes in India? Are there other areas within insolvency proceedings that could benefit from similar clarifications? #InsolvencyLaw #CorporateGovernance #Bankruptcy #BusinessLaw #Mojupdate

JSA Prism | Insolvency | March 2024 NCLT has inherent power to recall an order passed by it for approving a resolution plan   A 3 (three) judge bench of the Hon’ble Supreme Court of India, headed by Chief Justice of India, held that (a) the National Company Law Tribunal has inherent powers to recall its own order(s), which includes an order approving resolution plan for a corporate debtor; and (b) even if a claim submitted by a creditor is in a form not specified under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 the same has to be given due consideration by the Resolution Professional.   To read further details, please click here: https://lnkd.in/gCbaUbWt Varghese Thomas | Aditi Sehgal | Fatema Dalal Kachwalla | Ahsan Allana | Bhaskar Dhandharia #jsa #leadinglawfirm #leadinglawyers #legalupdates #insolvencylaw  #prism

🚀 Understanding the Corporate Insolvency Resolution Process (CIRP) in India 🚀 In today’s complex business environment, knowing how to navigate corporate insolvency is essential. The Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) has redefined the landscape for companies facing financial distress, offering a streamlined path for both revival and liquidation. 💼 The IBC framework emphasizes protecting stakeholder interests, preserving asset value, and ensuring a transparent, time-bound resolution. Here’s a snapshot of what CIRP entails: 🔹 Role of the Resolution Professional (RP): The RP manages operations, facilitates proposals, and steers the insolvency process, ensuring compliance with legal deadlines. 🔹 Committee of Creditors (CoC): This body has the power to approve or reject resolution plans, playing a critical role in deciding the debtor’s future. 🔹 Moratorium for Asset Protection: A temporary halt on legal actions allows focus on restructuring or orderly liquidation, safeguarding company assets. For businesses, investors, and financial professionals, understanding these statutory provisions can be a game-changer. CIRP not only promotes an efficient resolution process but also strengthens India’s insolvency regime, contributing to a stable and dynamic economy. For Full article 👉 https://sarojaachanta.in/   #CorporateInsolvency #CIRP #IBC #InsolvencyResolution #NCLT #ResolutionProfessional #CommitteeOfCreditors #AssetProtection #CorporateLaw #BusinessRestructuring#Corporate Insolvency Resolution Process# Insolvency and Bankruptcy Code (IBC)# Statutory Provisions for CIRP# Corporate debtor Insolvency India# CIRP and NCLT process# Role of Committee of Creditors (CoC)# Liquidation process under IBC# Resolution Professional responsibilities# Moratorium in insolvency resolution# Corporate insolvency statutory framework#  

📉NCLT Admits Insolvency Plea Against Dream11 Parent. 🔍Key Details: - Reward Solutions Pvt Ltd filed an insolvency plea against Sporta Technologies, Dream11's parent company, citing a rent default of over INR 7.6 Cr. - The Mumbai NCLT bench admitted the plea after Reward Solutions proved the presence of operational debt and default, with Sporta acknowledging its liability. 🏢Insolvency Proceedings Overview: - The dispute stems from a lease agreement between Reward Solutions and Sporta Technologies for two units in Mumbai. - Reward Solutions alleged consistent default in payment of the monthly licence fee by Sporta Technologies, prompting the insolvency plea in response to non-compliance with a demand notice. ⚖️NCLT's Decision and Actions Taken: - The NCLT recognized Sporta Technologies as a corporate debtor and admitted the insolvency petition under Section 9 of the Code. - An interim resolution professional was appointed for the case, and Sporta Technologies was directed to deposit INR 2 Lakh towards the initial insolvency process cost. 📈Dream11's Financial Position and Challenges: - Dream11 reported a 32% rise in net profit to INR 187.83 Cr in FY23, with operating revenue increasing by 66% to INR 6,384.49 Cr. - Amid tax challenges in the online gaming sector, Dream11 disclosed a show cause notice of INR 28,294.19 Cr under Section 74 of the Central Goods and Service Tax Act, 2017. 📊Future Implications and Proceedings: - The admission of the insolvency plea against Sporta Technologies could impact Dream11's operations and financial standing, necessitating strategic resolutions to address the rent default issue. - The case underscores the importance of contractual compliance and the potential consequences of defaults in commercial agreements. 🔍📉 #NCLT #Dream11 #Insolvency #CorporateDebt #FinancialDispute #StartUpNews #BusinessNews #MicroShots #NewsUpdates

𝐋𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 - 𝐀 𝐇𝐚𝐧𝐝𝐛𝐨𝐨𝐤 𝐛𝐲 𝐭𝐡𝐞 𝐈𝐂𝐀𝐈 Liquidation Process – A Handbook for the Guidance of Insolvency Professionals The Committee on Insolvency & Bankruptcy Code of the Institute of Chartered Accountants of India (ICAI) has brought out a publication – *Liquidation Process – A Handbook for the Guidance of Insolvency Professionals* to facilitate professionals in understanding the various functions and responsibilities while performing his duties as a Liquidator in conducting the Liquidation Process of the Corporate Debtors. The IBC has laid an extensive framework for Liquidation Process and elaborate Regulations thereunder. Liquidation Process of the corporate debtor is initiated under following circumstances: • No resolution plan is received by the Adjudicating Authority before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process • The resolution plan received is rejected by the Adjudicating Authority for non- compliance of the requirements specified • The Committee of Creditors (COC) with not less than 66% of the voting share, at any time during the Corporate Insolvency Resolution Process (CIRP) but before confirmation of a resolution plan, including at any time before the preparation of information memorandum, decides to liquidate the corporate debtor • The resolution plan approved by the Adjudicating Authority is contravened by the corporate debtor and any person other than the corporate debtor whose interests are prejudicially affected by such contravention, makes an application to the Adjudicating Authority for a liquidation The Adjudicating Authority orders for liquidation of the corporate debtor in the aforesaid situations. As per the IBBI, 2249 orders for commencement of liquidation have been passed up to September 2023. The publication is quite useful for all stakeholders connected to liquidation. The Institute of Chartered Accountants of India The Institute of Chartered Accountants of India (ICAI) #Liqudation #IBC #IBBI #Corporatedebtor #ICAI #ResolutionPlan #CorporateInsolvency #CoC #InformationMemorandum #AdjudicatingAuthority.