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End of the Road for CIRP: An Impasse at the COC

[Shivani Shenoy and Yashwardhan Rajawat are students at Symbiosis Law School, Pune. In this article, they analyse the predicaments in the formation of a Committee of Creditors (CoC) in two instances- i) when there is only one creditor which has successfully submitted a claim and ii) when no committee of creditors can be formed. The authors relate these two scenarios to the results of the insolvency proceedings, finding patterns and highlighting contradistinctions.] Introduction Section 21 of the Insolvency and Bankruptcy Code, 2016 (IBC) states that a CoC would be constituted after the collation of all claims received by the interim resolution professional (IRP) against the corporate debtor.

Corporate Debts: Better on Paper?

[Riya Sharma is a student at Jindal Global Law School.] A company cannot thrive without a proper inflow of funds – depending on the capital structure of a company, borrowing may be critical to its functioning and can help in meeting its financial requirements. Section 179 of the Companies Act, 2013, empowers the board of directors of a company to authorize borrowing in the interest of the company. Given that a poor rating may significantly hamper a company’s ability to borrow funds, credit rating agencies play an important role in this process. For such companies, there is always a higher borrowing cost to make up for the additional risk that an investor is undertaking in investing in a comp

Issues Arising from Non- Implementation of a Resolution Plan

[Shubham Kumar is a student at Hidayatullah National Law University, Raipur.] The Insolvency and Bankruptcy Code, 2016 (IBC) has, within 2.5 years of its enactment, passed many litmus tests and is yet to get through the storms. The problem of runaway bidders has plagued the Corporate Insolvency Resolution Process (CIRP) of Amtek Auto Limited, Castex Technologies Limited, ARGL Limited, Orchid Pharmaceuticals Limited, Ruchi Soya Limited, Adhunik Metaliks Limited, and Metalyst Forgings Limited. These cases have seen the successful resolution applicant backtracking from implementing the Resolution Plan (RP), the undesired consequence of which is the chopper of death falling on the corporate debt

A Seventh Set of Amendments to the Combination Regulations: CCI Makes Sweeping Changes to the Framew

[Saumya Raizada is an Editor at IRCCL.] The Competition Commission of India (CCI) on 13 August 2019 notified the seventh set of amendments to the CCI (Procedure in regard to the Transaction of Business relating to Combinations) Regulations 2011 (Regulation). These amendments, done keeping in mind the objective of making the merger control process in the country simpler, shall be effective from 15 August 2019 and are likely to give a major boost to the M&A scene in the country. Introduction of a green channel The CCI has, via Regulation 5A, inserted a green channel route for the parties which would ordinarily not cause any significant threat to competition under Schedule III for a faster merg

Insolvency and Bankruptcy Code (Amendment) Bill 2019: An Analysis

[Viraj Virvadia is a student at National Law University, Jodhpur.] One can say that the decision of Standard Chartered Bank v. Satish Kumar Gupta, also known as the Essar Steel case, is a wake-up call to resolve various lacunae present in the Insolvency and Bankruptcy Code, 2016 (IBC). In the Essar Steel case, the financial creditors were treated at par with the operational creditors. Further, the Committee of Creditors (COC) did not have a say in deciding the manner of distribution amongst the creditors. This raised several questions and the case was also challenged before the Supreme Court of India. Meanwhile, the Government of India placed the Insolvency and Bankruptcy Code (Amendment) Bi

Insolvency and Bankruptcy (Amendment) Bill 2019: Exigencies of Service

[Siddharth Jain and Sandeep Golani are students at National Law University, Odisha.] On 1 August 2019, Parliament passed the Insolvency and Bankruptcy (Amendment) Bill 2019 (Bill). The Bill concerns itself with the specific provisions of the Insolvency and Bankruptcy Code 2016 (Code) that seem to be surrounded by dark waters and offers eight much-needed amendments in the principal code. In light of the same, this article scratches the surface to understand the origin of such lacunae and the consequences and reasonableness of few of the major amendments. Time period for completion of corporate insolvency resolution process (CIRP) “A deadline for completion of CIRP within an overall limit of 3

Department of Consumer Affairs seeks views on Consumer Protection (E-Commerce) Guidelines 2018

[The following update has been brought to you by Geetanjali Kamat, who is the Founder-Editor at IRCCL.] The Department of Consumer Affairs has sought views of stakeholders on the Consumer Protection (e-Commerce) Guidelines 2018 (Guidelines) the latest by 16 September 2019. The Guidelines, applicable to B2C e-commerce in relation to goods and services (including digital content products), define an ‘e-commerce entity’ to mean a company incorporated under the Companies Act; or a foreign company (as defined under the Companies Act); or an office, branch or agency in India (as provided in the FEMA, 1999) owned or controlled by a person resident outside India, and includes an electronic service p

Dissecting the Companies (Amendment) Bill 2019

[The following update is brought to you by Shreetama Ghosh, who is an Editor at IRCCL.] The Companies (Amendment) Bill 2019 (Bill) has been tabled before and passed by the Lok Sabha and the Rajya Sabha with the aim to ensure more accountability and better enforcement to strengthen the corporate governance norms and compliance management in the corporate sector. It is time to look at some of the important amendments and examine whether they have been brought about in consonance with such ambition. Commencement of Business: The Bill has dealt with the issue of shell companies by introducing Section 10A to the Companies Act 2013 (Act), wherein a company cannot commence business unless it files:

Examining the Arbitration and Conciliation (Amendment) Bill 2019

[The following update is brought to you by Amrit Singh, who is an Editor at IRCCL.] On 15 July 2019, the Minister for Law and Justice, Mr. Ravi Shankar Prasad, introduced the Arbitration and Conciliation (Amendment) Bill, 2019 (2019 Bill) in the Upper House of the Indian Parliament. The Arbitration and Conciliation (Amendment) Bill 2018 (2018 Bill) was passed by Lok Sabha on 10 August 2018 and was pending before Rajya Sabha. However, the 2018 Bill lapsed as the 16th session of the Lok Sabha was dissolved. The 2019 Bill contains a few minor changes in addition to the amendments that were originally proposed in the 2018 Bill. The Upper House and the Lower House of the Indian Parliament passed

Energy Watchdog v. CERC: The Contractual Crisis Plaguing India’s Electricity Sector

[Ananaya Agrawal is a student at National Law University, Delhi.] An introduction to electricity sector’s journey in the past decade In the last decade, India has transformed from being an energy starved to a power surplus country. However, the shift has not been a path of roses, and the solutions to old problems have inadvertently opened a can of worms. One such emerging challenge is best understood through the case of Energy Watchdog v. Central Electricity Regulatory Commission (Energy Watchdog), which deals with classic contract law concepts of force majeure and contingent contracts in the specialized and dynamic niche of electricity law. Previously, state electricity distribution compani

Escaping the Corporate Grim Reaper - Revival over Liquidation under the IBC

[Shiv Verma is a student at National Law University, Jodhpur.] The Insolvency and Bankruptcy Code 2016 (IBC) was introduced as an essential tool for the recovery of debts in a streamlined and time-bound manner. With the Insolvency and Bankruptcy Board of India (IBBI) (Liquidation Process) Regulations 2016 (as amended by 28 March 2018 Amendment) (Liquidation Process Regulations), companies could continue through a sale as going concern during a liquidation by the liquidator. However, many issues arose during the revival process at the liquidation stage and in maintaining the company as a going concern due to lack of discernible clarity on the regulations as well as the IBC. On 27 April 2019,


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