Provisions of the Individual Bankruptcy under IBC 2016 – By CS Gaurav Joshi

Insolvency and Bankruptcy Process of an individual in India under IBC’ 2016 has gained momentum as Financial Institutions as well as the personal guarantors have started invoking provisions of Section 95 and 94 of the Code to trigger the process for resolving insolvency of personal guarantors. Some issues involving individual insolvency are being settled by way of judicial pronouncement either by Supreme Court, NCLAT or by NCLT, whereas most of the provisions are yet pass the test of judicial scrutiny.  The data issued by IBBI suggests that there are total 1612 no of application under Section 94 or 95 of the code filed by stakeholders involving an amount of Rs. 1.41 Lakh Crore. The data further suggests that till 31st December’ 2022, only 4 applications have been filed for initiating Bankruptcy Process of Individual. These numbers indicate that Individual Bankruptcy process is still at a very nascent stage. Therefore, a deeper and clear understanding among the stakeholders regarding provisions of Individual Bankruptcy is necessary so as to effectively use the provisions of Code.

Understanding the excluded assets and Liabilities: Insolvency Process of Personal Guarantor under the Code – By CS. Gaurav Joshi

Understanding the excluded assets and Liabilities: Insolvency Process of Personal Guarantor under the Code - By Gaurav Joshi, CS, Ll.b, I.D The provisions under Insolvency and Bankruptcy Code’ 2016 with respect to insolvency resolution and bankruptcy process for Individuals have…

Paper on Position of Directors in Twilight Zone- By Gaurav Joshi

Twilight zone- Although there has been no reference in International insolvency legislation of this term but it is recognized as important concept in Insolvency Jurisprudence across the world. It has been seen that many Insolvency laws recognize that there is shift in duties and responsibilities of a director on deterioration of financial position of a company from being solvent to being unable to service its debts. Twilight zone commences from the time when director of a company knew or ought to have known that there is no reasonable prospect of avoiding initiation of formal process of Insolvency till actual commencement of formal process of Insolvency. Ordinarily, for a solvent firm, duties and responsibilities of directors are prescribed under Company law with more shareholder centric approach.