The Hon'ble NCLT Principal Bench, Delhi approved the Resolution Plan on 07.03.2023. Jaypee Infratech Limited becomes the first acquisition of India’s revolutionary Bad Bank, signalling a promising future for distressed assets. The Bad Bank, which is a twin structure comprising of National Asset Reconstruction Company Limited (NARCL) and India Debt Resolution Company Limited (IDRCL), has been established to facilitate the effective resolution of large and complex non-performing assets (NPAs), in line with the announcement made by the Hon'ble Finance Minister in the Union Budget of February 2021.
Author wise: Kajal Bhatia
No fresh insolvency cases for a year: A narrow escape for companies – By Advocate Kajal Bhatia
No doubt IBC is considered as a landmark reform by the government as a measure by companies to recover its lost glory and continue as a going concern, but the much-relieved scheme will result in a slew of IBC cases flooding the court's post-1-year window. Also, due to deterioration in the business valuations, by the time a 1-year window will be lifted, the valuation would have dropped considerably and may not be in sync with the earlier reports and nobody would be in a condition to pay more than the current valuation. Hence, the creditors to effectuate their claims will resort to Summary suits under Order XXXVII of the Code of Civil Procedure, 1908 (CPC), or a commercial suit under Commercial Court Act, 2015, or a civil suit and few may also take recourse under the Companies Act, 2016 for winding up of the companies or the SARFESI Act, 2002.