Review of insolvency and bankruptcy law

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The Insolvency and Bankruptcy Code 2016 has evolved enormously since its creation. Through this quarterly journal, the firm aims to share recent updates and landmark judgments relating to the Code.

IBC – Approval of a resolution relating to the impossibility for a borrower to discharge a co-borrower: Supreme Court

The Supreme Court of India in Maitreya Doshi v Anand Rathi Global Finance Civil Appeal no. 6613 of 2021 of September 22, held that if there are two borrowers or if two legal persons fall within the domain of corporate debtors, there is no reason for a procedure under article 7 of the ‘IBC cannot be engaged against the two corporate debtors.

Read the full judgment here

CIRP can be initiated against corporate guarantor without suing primary borrower, Supreme Court reiterates

The Supreme Court on 07.09.2022 in K. Paramasivam v The Karur Vysya bank ltd. & anr. held that under section 7 of the IBC, CIRP may be incurred against an entity that has agreed to vouch for an unincorporated entity’s contributions as a liability financial. The Court ruled that once the corporation fails to repay its debt, that debt reverts to the guarantor.

Read the full judgment here

Applicability of the minimum threshold of Rs. 1 crore is to be seen from the date of filing of the petition, not from the date of dispatch of notice of application: NCLT Delhi

The National Company Law Tribunal, Delhi on 14.09.2022 in Udit Jain v. Apace Builders and Contractors held that the minimum threshold of 1 crore should be considered from the date of filing of the petition and not from the date of filing. sending the notice of application.

Read the full judgment here

The limitation should be counted not from the date of delivery of the certified copy but from the date of preparation of the certified copy – NCLAT New Delhi

The NCLAT, New Delhi, held in Wadhwa Rubber v. Bandex Packaging Private Limited Company Appeal (AT) (Ins.) No. 576 OF 2021 held that the limitation should be counted not from the date of delivery of the certified copy but from the date of preparation of the certified copy compliant.

Read the full judgment here

KEY CHANGES

On 9.11.2022, the Insolvency and Bankruptcy Board canceled various circulars which are no longer required due to the fact that they are already provided in the and the IBBI (Information Utilities) Regulations, 2017, IBBI Regulations ( insolvency professionals), 2016; IBBI Rules (Model Laws and Rules of the Insolvency Board of Professional Insolvency Agencies), 2016.

Read the flyer here

The National Company Law Appellate Tribunal (“NCLAT”), by order dated 21.10.2022, issued instructions for calculating the appeal filing limit. The limitation period runs from the date of presentation of the appeal.

Read the order here

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