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The issue of economic downturns that impact the financial situation of different industries, such as construction companies, cannot be ignored due to their contribution to the overall economy in India. Their delayed payments severely affect the cash flow disruptions, particularly in large corporations. The current insolvency framework in India may not address the distinctive obstacles […]
Sector-specific insolvency cases are needed to address the unique characteristics of different industries, aspects that the Insolvency and Bankruptcy Code, 2016 (IBC) may not address. The Committee of Creditors’ (CoC) decision is crucial in forming the resolution plans that either revive the corporate debtor is liquidate them. Thereby, the CoC in CIRP decisions on sector-specific […]
A company has a juristic existence that is independent of its shareholder, known as the figurative ‘Corporate Veil in Insolvency’. The members are protected against obligations resulting from the company’s acts. In a series of judgments, courts have taken a consistent view that the Corporate Veil in Insolvencyof a company should be respected as the […]
When a party to a contract becomes insolvent, it significantly impacts their ability to fulfill their contractual obligations potentially leading to disputes over contract performance, termination rights, and the overall legal framework of the agreement. It creates a complex situation where the solvent party may face uncertainty regarding their contractual rights and potential losses due […]
The Adjudicating Authority approves the resolution plan submitted by the Committee of Creditors, if it meets the requirements of the Insolvency and Bankruptcy Code, 2016 (IBC). Once approved, the resolution plan becomes legally binding on all parties associated with the corporate debtor. Section 31 of IBC affects not only the corporate debtor’s creditors, but also […]
The Insolvency and Bankruptcy Code, 2016 (IBC) establishes a time-bound process that ensures fairness and transparency during CIRP in the insolvency process. It is the responsibility of insolvency professionals and the Adjudicating Authorities to ensure fairness and transparency during the corporate insolvency resolution process (CIRP) in the IBC. This allows for a level playing field […]
Insolvency law is significantly impacted by the parties involved in the insolvency proceedings. Unfortunately, certain stakeholders may misuse the insolvency framework to benefit themselves. To prevent the abuse of insolvency law there is the doctrine of Clean Hands in Insolvency Law. By applying this doctrine, courts can prevent individuals from using insolvency laws to gain […]
Having a clear and efficient insolvency process reduces the perceived risk for foreign investors, as they are more confident about recovering their investments if a company they invest in faces financial difficulties. The Insolvency and Bankruptcy Code, 2016 (IBC) streamlines the insolvency process, leading to a quicker resolution, which positively impacts investor sentiment and encourages […]
When a company becomes insolvent, there are several parties involved in the resolution process, not only the corporate debtor and its creditors. Understanding equitable treatment under insolvency law is essential, as it ensures a fair distribution of assets and protects the interests of all stakeholders. The Insolvency and Bankruptcy Code, 2016 (IBC) provides the framework […]
Fraudulent practices may impede economic growth, exacerbate income inequality, increase the cost of government services, and lower trust in government, among other consequences. Public sector entities need to adopt advanced CIRP Fraud Detection methods as they allow them to safeguard the general public, maintain their trust, improve the efficiency of their operations, and stay ahead […]
