Analysis of PPIRP Process and Its benefits as compared to CIRP – By Mallika Tiwary

Analysis of PPIRP Process and Its benefits as compared to CIRP - By Mallika Tiwary INTRODUCTION Pre- Packaged Insolvency Resolution Process (PPIRP) came into existence in April 2021 by way of an amendment in the Insolvency and Bankruptcy Code, 2016[1].…

Accounting for the Right of the Personal Guarantor: Critique of the Plea Challenging Validity of IBC – By Lolita Delma Crasta

On August 2022, Anil Ambani filed a plea challenging the constitutionality of certain IBC provisions in response to the insolvency proceedings initiated against Reliance Group. The validity has been raised against Section 95 (Application by creditor to initiate insolvency resolution process), 96 (Interim-moratorium), 97 (Appointment of resolution professional), 99 (Submission of report by resolution professional), 100 (Admission or rejection of application) of the IBC Code, 2016.

Fresh Start Process in India and United Kingdom – By Hariharran

“Fresh start” is a first step to free up the debtors from the old legislation of the colonial era such as the Presidency-Towns Insolvency Act of 1909 and the Provincial Insolvency Act of 1920 but the debtors need some guidance and assistance from misuse of the law. Many institutions from microfinance industry and commercial banks which lend money to such institutions apprehend that such a legislation in India will encourage small unsecured debtor to default which will eventually destroy the credit culture. It is important to understand that this process do not “erase” a debt; the discharge order is an injunction that makes a debt uncollectible. But this process will provide relief to small debtors there are various concerns in its implementation procedure. One of the major drawbacks to seek a fresh start, that the debt recovery tribunals (DRT) and there are very less than across the country.

Does the Supreme Court need to clarify the applicability of the increased Insolvency Threshold? – By Naman Khatwani

On March 24, 2020, an amendment in the insolvency threshold was notified by the MCA to increase the amount of default from 1 lakh rupees to 1 crore rupees for initiating insolvency process against corporate debtors. Since the notification, it has been interpreted differently by various benches of the NCLT despite there being precedent set out by the NCLAT. The article aims to determine why the notification dated March 24, 2020 has been interpreted differently by various benches, and whether it needs settling by the Supreme Court.

Placing the Artificial Intelligence on the Insolvency Spectrum: an Analysis – By Sakshi Pandey and Harshvardhan Singh Sikarwar

The article aims to transverse into the future and explores the unexplored potential and capability of AI in insolvency laws in all three pre-insolvency, CIRP, and liquidation stages. It looks into the global adoption of AI to strengthen the argument of streamlining the insolvency resolution process through AI.

Tackling the Hindrances arising Post Approval of the Resolution Plan – By Sujay Agrawal

In this Article, the Author would delve into certain specific hinderances concerning circumstances post the approval of resolution plan and provide suggestions pertaining to the same. First of all, the Author would delve into certain aspects arising pertaining to the Clean Slate theory. Thereafter, the Author would discuss factors/hinderances concerning the withdrawal or modification of resolution plan.

Audi Alteram Partem: A Right not accorded to Personal Guarantors – By Swena Prashant & Soham Das

The IBC was enacted to provide a streamlined and faster process for dealing with the insolvency of individuals and corporate entities. However, it should ensure that personal guarantors don’t miss out on their fundamental rights in the garb of speedy redressal.  It is high time that the courts recognize the significance of the role that is played by personal guarantors and vest them with fairness, in line with principles of natural justice. By granting interim relief, the Supreme Court has made its intention clear that the subject of rights of personal guarantors requires further scrutiny. It is left to be seen what the court adjudges, but optimizing the resolution process to accommodate all parties on the same pedestal, is of utmost need.

Guide to Public M&A in India – By Tanveen Kaur

These are just a few things that buyers should be aware of and each M&A agreement comes with its own set of nuances, issues, and workarounds. The value of having trusted Public M&A advisors to help the parties navigate these complex issues cannot be underestimated.

The Alienation of Operational Creditors from Committee of Creditors- A lacunae in IBC – Adv. Ankit Chandra

As per the data published by IBBI quarterly newsletter Oct-Dec. 2021, an all total of Rs. 32,861.90 crore was admitted as claims and up till December, 2021 only Rs. 4406.76 crore was recovered, i.e., just a mere sum of 13.41% of all admitted claims. It is ironical that the FCs total admitted claims and realised claims were mentioned in the quarterly report, but the same of the OCs couldn’t find a place in the said report. Analysing the data issued by the IBBI, it can be inferred that the operational creditors have been vehemently side-lined by lawmakers and realization of their claims has not been proportionate.