Cross Border Insolvency

If parallel insolvency proceedings has been initiated against the Corporate Debtor, the respective authority of other country has also right to participate in the meeting of CoC & joint CIRP will continue in accordance with IBC – Jet Airways (India) Ltd Vs. State Bank of India & Anr – NCLAT

NCLAT held that it clear that the CoC have no role to play as the agreement reached between the ‘Dutch Administrator’ and the Resolution Professional of India is on the basis of the direction of this Appellate Tribunal. In spite of the same, unfortunately the CoC interfered with the matter and put its view to the Resolution Professional resulting into difference of the suggestions. ‘The Dutch Trustee’ is equivalent to the Resolution Professional of India, therefore, as per law he has a right to attend the meeting of the CoC. However, as we do not want to overlap the power between one and other, we are of the view that the suggestion given by the ‘Dutch Trustee’ (Administrator) as shown in its ‘Clause 6.1.2’ should be part of the Agreement – ‘Cross Border Insolvency Protocol’.

If parallel insolvency proceedings has been initiated against the Corporate Debtor, the respective authority of other country has also right to participate in the meeting of CoC & joint CIRP will continue in accordance with IBC – Jet Airways (India) Ltd Vs. State Bank of India & Anr – NCLAT Read Post »

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