0 comments on “Remedy to file a suit or an application against the corporate debtor after completion of the period of moratorium in accordance with Section 60(6) of the Code”

Remedy to file a suit or an application against the corporate debtor after completion of the period of moratorium in accordance with Section 60(6) of the Code

The cases in which the Adjudicating Authority or Appellate Tribunal could not decide the claim on merit, such claims or issues can be raised before an appropriate forum in terms of Section 60(6) of the Code. The Financial Creditors and the Operational Creditors whose claims have been decided by the Adjudicating Authority or this Appellate Tribunal, such decision being final and is binding on all such Financial Creditors and the Operational Creditors in terms of Section 31 of the Code. Their total claims stand satisfied and, therefore, they cannot avail any remedy under Section 60(6) of the Code. The Financial Creditors in whose favour guarantee were executed as their total claim stands satisfied to the extent of the guarantee, they cannot reagitate such claim from the Principal Borrower.

4 comments on “Analysis of withdrawal of CIRP proceeding pursuant to settlement under Section 12A of the IBC”

Analysis of withdrawal of CIRP proceeding pursuant to settlement under Section 12A of the IBC

Section 12A is inserted by second amendment in IBC on recommendation by  Insolvency Law Committee Report submitted in Mar, 2018 to provide facility to withdraw application made under section 7, 9 or 10 on settlement even if CIRP has been initiated. Before the Section 12A, there was no provision in the Code or the regulations in relation to permissibility of withdrawal post admission of a CIRP application. As discussed above, only rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016t provide facility to withdraw the application on a request by the applicant before it is admitted by the NCLT.

2 comments on “Analysis of the time limit under Section 12 of the Insolvency and Bankruptcy Code, 2016 for completion of CIRP”

Analysis of the time limit under Section 12 of the Insolvency and Bankruptcy Code, 2016 for completion of CIRP

“Decoding the Code” Analysis on time limit under section 12 of the Code for completion of insolvency resolution process  (Updated up to 25.08.2019) As per the Insolvency and Bankruptcy Code, 2016 (the Code), the procedure involved in the Corporate Insolvency…

1 comment on “All about the Moratorium under IBC including judicial pronouncements”

All about the Moratorium under IBC including judicial pronouncements

"Decoding the Code" All about the Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 including judicial pronouncements  (Updated up to 18th July, 2019) Since the enforcement of the Insolvency and Bankruptcy Code, 2016 ('IBC' or 'the Code'),…

0 comments on “Persons who may initiate CIRP against Corporate Debtor”

Persons who may initiate CIRP against Corporate Debtor

"Decoding the Code" Persons who may initiate Corporate Insolvency Resolution Process(CIRP) Chapter-II of the Insolvency and Bankruptcy Code, 2016 (referred as 'IBC' or 'the Code') covers Corporate Insolvency Resolution Process(CIRP). As per Section 6 of the Code, following persons may…

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.

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