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The insolvency law in India was transformed with the enactment of the Insolvency and Bankruptcy Code, 2016. Among the many changes, the waterfall mechanism Under IBC was introduced as a systematic manner is distributing the proceeds. This ensures that the distribution is done fairly, according to the principle of equitable treatment, and maintains a structured […]
The Graduate Insolvency Programme (GIP) is a specialised course offered by the Indian Institute of Corporate Affairs (IICA) at its Manesar Campus. It is one of the most competitive exams specifically for the insolvency professionals as it admits only 52 candidates all over India. The eligibility for the GIP is restricted to individuals with an […]
In 2016, the insolvency law had a major change in the enactment of the Insolvency and Bankruptcy Code, 2016. As per this Code, a new method was available for the creditors to seek resolution of a company by engaging an insolvency professional to take charge of the business operations of the corporate debtor when the […]
Corporate bankruptcy is the process that companies or individuals opt for when they are unable to pay their debts to their creditors on time. It is a difficult time for companies or individuals and creditors, but for investors, it is an opportunity. Potential investors should do their due diligence and thorough research on whether the […]
This article Difference between a liquidator and an insolvency professional aims at providing clarity on the distinct roles of a them. Both of these positions are central to guiding a company through their financial difficulties, although the engagement of both in the insolvency process is distinct. While an IP has the main responsibility with supervising […]
A Liquidator: Powers and Functions under IBC, with reference to section 5(18) of the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”), is an insolvency professional who is appointed by the court, which in insolvency law, is the National Company Law Tribunal (NCLT) to manage a company’s liquidation process when it is […]
The Supreme Court’s take on personal insolvency in IBC has brought significant focus on the role of personal guarantors in insolvency law. A personal guarantor, by promising to repay corporate debts, faces substantial liabilities if corporate debtors default, putting their personal assets at risk. This interpretation under IBC highlights potential disadvantages for guarantors and raises […]
Understanding the insolvency process under the Insolvency and Bankruptcy Code, 2016, it’s crucial to grasp the difference between financial debt and operational debt. The core distinction lies in the nature of the debt, which determines the rights, roles, and responsibilities of the creditors. Financial creditors hold a significant influence, particularly in corporate insolvency resolution and […]
When an insolvent company goes into liquidation, employees face a challenging period as the company ceases operations and ultimately stops all salary payments. During this time, understanding How Does Liquidation Affect Employees becomes crucial, as unpaid wages typically become a claim in the liquidation process. For employees, knowing their rights and exploring any available remedies […]
In the insolvency and bankruptcy domain, insolvency professionals (IPs) and registered valuers (RVs) have crucial but distinctive roles within the insolvency process under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”). While IPs manage the overall insolvency resolution process, ensuring that it progresses in accordance with legal and regulatory requirements, RVs […]
