0 comments on “Outcomes from NCLAT judgment in the matter of Essar Steel India Limited”

Outcomes from NCLAT judgment in the matter of Essar Steel India Limited

The CoC do not enjoy any authority to delegate to itself the role of the Resolution Applicant including the manner of distribution of amount amongst the stakeholders, which is exclusively within the domain of the Resolution Applicant and thereafter before the Adjudicating Authority, if found discriminatory. Such being the position, the CoC cannot delegate its power to a Sub Committee or Core Committee for negotiating with the Resolution Applicant(s).

0 comments on “Can a bank file an application for initiating CIRP against another (bank) when a default has occurred?”

Can a bank file an application for initiating CIRP against another (bank) when a default has occurred?

A financial creditor or an operational creditor cannot file application for initiating CIRP against financial service provider even if they maybe corporate entities because these are not corporate debtors under the Insolvency and Bankruptcy Code, 2016.  Financial Service provider can file application to initiate CIRP against any corporate debtor, if the corporate debtor commits defaults. However, if a bank takes loan from the another (bank) or from any financial service provider, the debt taker bank cannot file application for initiating CIRP against other bank(or against financial service provider) as debt owned bank is out of purview of the Code as a financial service provider as discussed in the this article.  Similarly, insurer is out of purview of the Code.

0 comments on “Important Points under the Banning of Unregulated Deposit Schemes Ordinance, 2019”

Important Points under the Banning of Unregulated Deposit Schemes Ordinance, 2019

The laws defines that any person who makes deposit under this Ordinance called the depositor. All persons such any individual or group of individuals; proprietorship concern; partnership firm; LLP; company; AOP; trust; co-operative society and any other arrangement of whatsoever nature, receiving or soliciting deposits  called depositor taker except following: (i) a Corporation incorporated under an Act of Parliament or a State Legislature; (ii) a banking company, a corresponding new bank, the State Bank of India, a subsidiary bank, a regional rural bank, a co—operative bank or a multi- State co-operative bank as defined in the Banking Regulation Act, 1949.

0 comments on “Salient Features of Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018”

Salient Features of Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018

Cabinet approves New Bill to ban Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018  In a major policy initiative to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given…

0 comments on “Relaxation of External Commercial Borrowing (ECB) framework for Resolution Applicants”

Relaxation of External Commercial Borrowing (ECB) framework for Resolution Applicants

The RBI amended the regime on external commercial borrowings (ECBs), and allowed RAs to borrow ECBs from recognised lenders (other than the branches or overseas subsidiaries of Indian banks) for repayment of rupee term loans of a corporate debtor under…

0 comments on “The IBBI amends the CIRP-The CIRP(Amendment) Regulations, 2019”

The IBBI amends the CIRP-The CIRP(Amendment) Regulations, 2019

The Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (See amended CIRP Regulation)  The Insolvency and Bankruptcy Code, 2016 provides for corporate insolvency resolution process for invitation,…