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Amendment in IBBI, Application to Adjudicating Authority Regulations, 2016

2020-09-27T11:43:00.006+05:30

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Amendment in IBBI, Application to Adjudicating Authority Rules, 2016

Now the applicant has to serve the copy of application to Board also along with Corporate Debtor and to attach the proof of dispatch with application.

Now the IRP has to declare at the time of giving consent in Form-2 the number of assignments in hand and the estimated time of closure of process.

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 24th September, 2020

G.S.R. 583(E).—In exercise of the powers conferred by clauses (c), (d), (e) and (f) of sub-section (2) of section 239 read with sections 7, 8, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby makes the following rules further to amend the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, namely:-

1. (1) These rules may be called the Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020.

(2) These rules shall come into force from the date of their publication in the Official Gazette.

2. In the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016,-

(i) in rule 4, for sub-rule (3), the following sub-rule shall be substituted, namely: -

(3) The applicant shall serve a copy of the application to the registered office of the corporate debtor and to the Board, by registered post or speed post or by hand or by electronic means, before filing with the Adjudicating Authority.;

(ii) in rule 6, for sub-rule (2), the following sub-rule shall be substituted, namely: -

(2) The applicant under sub-rule (1) shall serve a copy of the application to the registered office of the corporate debtor and to the Board, by registered post or speed post or by hand or by electronic means, before filing with the Adjudicating Authority.;

(iii) in rule 7, for sub-rule (2), the following sub-rule shall be substituted, namely:-

(2) the applicant under sub-rule (1) shall serve a copy of the application to the Board by registered post or speed post or by hand or by electronic means, before filing with the Adjudicating

Authority.;

(iv) in FORM 1:-

(a) after Part - V, for the words, ―[Name of the financial creditor] has paid the requisite fee for this application through [state means of payment] on [date], the following shall be substituted, namely:-

[Name of the financial creditor] has paid the requisite fee for this application through [state means of payment] on [date] and served a copy of this application by registered post/speed post/by hand/electronic means to the registered office of the corporate debtor and to the Board.;

(b) under the Instructions‘, after Annex IV’, the following shall be inserted, namely: -

Annex V Proofs of serving a copy of the application (a) to the corporate debtor, and (b) to the Board.

(v) in FORM 2, for the serial number (iii), the following shall be substituted, namely: -

(iii) disclose that I am currently having the following assignments in hand:

Sl. No.

Assignment as

Number of assignment(s)

No.

Name of corporate debtor

Date of commencement of process

Expected date of closure of process

Corporate Processes

1 IRP 1

2 RP 1

3 Liquidator (including voluntary liquidations)

4 Authorised Representative

Individual Processes

5 Resolution Professional

6 Bankruptcy Trustee

7 Any other.

(vi) in FORM 5, after Part – V: -

(a) for the words [Name of the operational creditor] has paid the requisite fee for this application through [state means of payment] on [date], the following shall be substituted, namely:-

[Name of the operational creditor] has paid the requisite fee for this application through [state means of payment] on [date] and a copy of this application has been served by registered post/speed post/by hand/electronic means to the registered office of the corporate debtor and to the Board;

(b) under the Instructions‘, -

(I) for the portion beginning with Annex III Copy of the relevant accounts and ending with operational debtor, if available., the following shall be substituted, namely:-

Annex III Form 5A, if available, from the banks/financial institutions that maintains relevant accounts of the operational creditor.;

(II) after Annex VI‖, the following shall be inserted, namely: -

Annex VII Proofs of serving a copy of the application (a) to the corporate debtor, and (b) to the Board.

(vii) after Form 5, the following Form shall be inserted, namely:-

“Form 5A

[Under section 9(3)(c) of the Code]

(To be issued on the letter head of the Bank / Financial Institution)

To whomsoever it may concern

Based on a request of ……….(name and address of person), having an account(s) bearing No…… at …..branch of bank/financial institution, it is certified that the following amounts have been credited in the last three years to this account on behalf of corporate debtor (name and address of the corporate debtor from whom the amount is supposed to be credited).

Date of credit

Amount of credit (Rs.)

(Signature and Name of issuing authority)

Date :

Place :

(viii) in Form 6, after Part III, -

(a) for the words, ―[Name of the corporate applicant] has paid the requisite fee for this application through [state means of payment] on [date], the following shall be substituted, namely:-

[Name of the corporate applicant] has paid the requisite fee for this application through [state means of payment] on [date] and a copy of this application has been served by registered post/speed post/by hand/electronic means to the Board.

(b) under the Instructions‘, after Annex IX‘, the following shall be inserted, namely: -

Annex X Proof that a copy of the application has been served to the Board.

[F. No. 30/20/2018-Insolvency Section]

GYANESHWAR KUMAR SINGH, Jt. Secy.

Note : The principal rules were published in the Gazette of India, Part II, Section 3, Sub-section (i), vide G.S.R. 1108(E) dated the 30th November, 2016 and amended vide notification no. G.S.R. 222(E) dated the 14th March, 2019.

Click Here to download amended regulations

Compiled By:

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Disclaimer: The Purposes of this article is knowledge sharing among the users while the information is believed to be accurate to the best of our knowledge and belief. We do not make any representation or warranties, express or implied, as to the accuracy or completeness of this information. We accept no responsibilities for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Further Extension of Three Months upto 25th December 2020 for filing of fresh application under IBC

2020-09-27T11:08:00.001+05:30

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Further Extension of Three Months upto 25th December 2020 for filing of fresh application under IBC

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 24th September, 2020

S.O. 3265(E).—In exercise of the powers conferred by section 10A of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) [as inserted by section 2 of the Insolvency and Bankruptcy Code

(Second Amendment) Act, 2020 (17 of 2020)], the Central Government hereby notifies further period of three months from the 25th September, 2020 for the purposes of the said section.

[F. No. 30/33/2020-Insolvency]

GYANESHWAR KUMAR SINGH, Jt. Secy.

Click Here to download notification

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Disclaimer: The Purposes of this article is knowledge sharing among the users while the information is believed to be accurate to the best of our knowledge and belief. We do not make any representation or warranties, express or implied, as to the accuracy or completeness of this information. We accept no responsibilities for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Changes in appointment rules of Authorised Representative to represent financial creditors in a class

2020-08-09T10:59:00.007+05:30

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Changes in appointment rules of Authorised Representative to represent financial creditors in a class

The Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020.

The Insolvency and Bankruptcy Code, 2016 (Code) envisages appointment of an authorised representative (AR) by the Adjudicating Authority to represent financial creditors in a class, like allottees under a real estate project, in the committee of creditors. For this purpose, the Regulations require the interim resolution professional to offer a choice of three Insolvency Professionals (IP) in the public announcement, and the creditors in a class to choose one of them to act as their authorised representative. The amendment made to the Regulations today provides that the three IPs offered by the interim resolution professional must be from the State or Union Territory, which has the highest number of creditors in the class as per records of the corporate debtor. This will facilitate ease of coordination and communication between the AR and the creditors in the class he represents.

The Regulations currently envisage that the authorised representative shall seek voting instructions from creditors in a class at two stages, namely, (i) before the meeting; and (ii) after circulation of minutes of meeting. The amendment made to the Regulations today provides that the authorised representative shall seek voting instructions only after circulation of minutes of meeting and vote accordingly. He shall, however, circulate the agenda, and may seek preliminary views of creditors in the class before the meeting, to enable him to effectively participate in the meeting.

The Regulations provide that the committee of creditors shall evaluate all compliant resolution plans as per evaluation matrix to identify the best of them and may approve it. The amendment made to the Regulations today provides that after evaluation of all compliant resolution plans as per evaluation matrix, the committee of creditors shall vote on all compliant resolution plans simultaneously. The resolution plan, which receives the highest votes, but not less than sixty-six percent of voting share, shall be considered as approved.

Click Here for download of Amended CIRP Regulations

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Corporate Person may replace the liquidator by appointing another insolvency professional as liquidator

2020-08-09T10:50:00.002+05:30

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Corporate Person may replace the liquidator by appointing another insolvency professional as liquidator

The Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020.

The Insolvency and Bankruptcy Code, 2016 enables a corporate person to initiate voluntary liquidation process if it has no debt or it will be able to pay its debts fully from the proceeds of the assets. The corporate person appoints an insolvency professional to conduct the voluntary liquidation process by a resolution of members or partners, or contributories, as the case may be. However, there can be situations which may require appointment of another resolution professional as the liquidator. The amendment made to the Regulations today provides that the corporate person may replace the liquidator by appointing another insolvency professional as liquidator by a resolution of members or partners, or contributories, as the case may be.

Click Here for download of Amended Voluntary Liquidation Process Regulations

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IBBI - Fixation of Fees Payable to Liquidators

2020-08-09T10:44:00.005+05:30

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IBBI - Fixation of Fees Payable to Liquidators

The Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy

Board of India (Liquidation Process) Regulations, 2016

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy

Board of India (Liquidation Process) (Third Amendment) Regulations, 2020.

The Regulations require the committee of creditors to fix the fee payable to the liquidator.

Where the fee has not been fixed by the committee of creditors, the Regulations provide for a

fee as a percentage of the amount realised and of the amount distributed by the liquidator. There have been instances where a liquidator realises the amount while another liquidator distributes the same to stakeholders. The amendment made to the Regulations today clarifies that where a liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him. Likewise, where a liquidator distributes any amount, which is not realised by him, he shall be entitled to a fee corresponding to the amount distributed by him.

click here for download amended liquidation process regulations in PDF

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INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS BY FINANCIAL CREDITORS U/S 7 OF INSOLVENCY AND BANKRUPTCY CODE, 2016

2020-08-06T22:55:00.004+05:30

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INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS BY FINANCIAL CREDITORS U/S 7 OF INSOLVENCY AND BANKRUPTCY CODE, 2016

FINANCIAL CREDITOR : SECTION 5(7)

“financial creditor” means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to;

FINANCIAL DEBT : SECTION 5(8)

“financial debt” means a debt alongwith interest, if any, which is disbursed against the consideration for the time value of money and includes–

money borrowed against the payment of interest;
any amount raised by acceptance under any acceptance credit facility or its de- materialised equivalent;
any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;
the amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other accounting standards as may be prescribed;
receivables sold or discounted other than any receivables sold on non-recourse basis;
any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing;

[Explanation. -For the purposes of this sub-clause, -

any amount raised from an allottee under a real estate project shall be deemed to be an amount having the commercial effect of a borrowing; and
the expressions, “allottee” and “real estate project” shall have the meanings respectively assigned to them in clauses (d) and (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);]

g. any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account;

h. any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution;

i. the amount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in sub-clause (a) to (h) of this clause;

PERSONS WHO MAY INITIATE CORPORATE INSOLVENCY RESOLUTION PROCESS : SECTION 6

Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor in the manner as provided under this Chapter.

INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS BY FINANCIAL CREDITOR: SECTION 7

SECTION 7 (1)

A financial creditor either by itself or jointly with 1[other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government] may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred.

Proviso:

[Provided that for the financial creditors, referred to in clauses (a) and (b) of sub- section (6A) of section 21, an application for initiation corporate insolvency resolution process against the corporate debtor shall be filed jointly by not less than one hundred of such creditors in the same class or not less than ten per cent. of the total number of such creditors in the same class, whichever is less:

Provided further that for financial creditors who are allottees under a real estate project, an application for initiating corporate insolvency resolution process against the corporate debtor shall be filed jointly by not less than one hundred of such allottees under the same real estate project or not less than ten per cent. of the total number of such allottees under the same real estate project, whichever is less:

Provided also that where an application for initiating the corporate insolvency resolution process against a corporate debtor has been filed by a financial creditor referred to in the first or second provisos and has not been admitted by the Adjudicating Authority before the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2020, such application shall be modified to comply with the requirements of the first or second provisos as the case may be within thirty days of the commencement of the said Act, failing which the application shall be deemed to be withdrawn before its admission.]

Explanation. - For the purposes of this sub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor.

SECTION 7 (2)

The financial creditor shall make an application under sub-section (1) in such form and manner and accompanied with such fee as may be prescribed.

SECTION 7 (3)

The financial creditor shall, along with the application furnish -

(a) record of the default recorded with the information utility or such other record or evidence of default as may be specified;

(b) t h e name of the resolution professional proposed to act as an interim resolution professional; and

SECTION 7 (4)

The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor under sub-section (3):

[Provided that if the Adjudicating Authority has not ascertained the existence of default and passed an order under sub-section (5) within such time, it shall record its reasons in writing for the same.]

SECTION 7 (5)

Where the Adjudicating Authority is satisfied that –

(a) a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or

(b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application:

Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-section (5), give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority.

SECTION 7 (6)

The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (5).

SECTION 7 (7)

The Adjudicating Authority shall communicate-

(a) the order under clause (a) of sub-section (5) to the financial creditor and the corporate debtor;

(b) the order under clause (b) of sub-section (5) to the financial creditor,

within seven days of admission or rejection of such application, as the case may be.

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Once an insolvency professional is appointed to manage the company, the erstwhile directors who are no longer in management, obviously cannot maintain an appeal on behalf of the company

2020-08-05T21:35:00.000+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, Once an insolvency professional is appointed to manage the company, the erstwhile directors who are no longer in management, obviously cannot maintain an appeal on behalf of the company

SC - Innoventive Industries Ltd. Vs. ICICI Bank.pdf

The time limit prescribed in IBC, 2016 for admitting or rejecting a petition or initiation of CIRP is directory for courts and time limit for removal of objections is mandatory for applicants

2020-08-05T20:59:00.003+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, The time limit prescribed in IBC, 2016 for admitting or rejecting a petition or initiation of CIRP is directory for courts and time limit for removal of objections is mandatory for applicants

SC - Surendra Trading Company Vs. Juggilal Kamlapat Jute Mills Co. Ltd. & Ors..pdf

IBC is not a recovery forum and the IBC provisions cannot be invoked if there is existence of real pre-existing dispute

2020-08-02T20:14:00.005+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, IBC is not a recovery forum and the IBC provisions cannot be invoked if there is existence of real pre-existing dispute

Transmission Corporation Of Andhra Pradesh Limited Vs Equipment Conductors 34994_2018_Judgement_23-Oct-2018_2018-10-23 22_58_08.pdf

NCLAT opens window for the Corporate Debtor, to exit the CIRP, and allow to make an out of court settlement with its creditors.

2020-08-02T14:48:00.001+05:30

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NCLAT Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_NCLAT Orders, NCLAT opens window for the Corporate Debtor, to exit the CIRP, and allow to make an out of court settlement with its creditors.

In the matter of Vivek Bansal Vs. Burda Druck India Pvt. Ltd. & Anr. CA(AT)(Ins)No. 552 of 2020

High Court ought not to have proceeded with the auction of the property of the Corporate Debtor, once the proceedings under the IBC had commenced, and an Order declaring moratorium was passed by the NCLT

2020-08-02T14:05:00.004+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, High Court ought not to have proceeded with the auction of the property of the Corporate Debtor, once the proceedings under the IBC had commenced, and an Order declaring moratorium was passed by the NCLT

In the matter of Anand Rao Korada Resolution Professional Vs. Varsha Fabrics (P) Ltd. & Ors. Civil Appeal Nos. 8800-8801 of 2019.pdf

Expenses fixed by adjudicating authority will be borne by creditor who moves the application

2020-08-02T13:57:00.001+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, expenses fixed by adjudicating authority will be borne by creditor who moves the application, if no COC is constituted

In the matter of S3 Electricals and Electronics Private Limited Vs. Brian Lau & Anr. Civil Appeal No. 103-2018

A Corporate Debtor in respect of whom a liquidation order has been made is not entitled to make application to initiate CIRP against other Corporate Debtor

2020-08-01T22:29:00.006+05:30

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NCLAT Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_NCLAT Orders, A Corporate Debtor in respect of whom a liquidation order has been made is not entitled to make application to initiate CIRP against other Corporate Debtor, section 11 of IBC, 2016

In the matter of Abhay N. Manudhane Vs. Gupta Coal India Pvt. Ltd. CA(AT)(Insolvency)No.786 of 2019

ED has no jurisdiction to attach the property of the Corporate Debtor which is undergoing CIRP without prior approval of the Appellate Tribunal

2020-08-01T22:27:00.006+05:30

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NCLAT Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_NCLAT Orders, ED has no jurisdiction to attach the property of the Corporate Debtor which is undergoing CIRP without prior approval of the Appellate Tribunal

In the matter of JSW Steel Limited Vs. Mahender Kumar Khandelwal CA(AT) (Ins) No. 957 of 2019.pdf

Successful Resolution Applicant can not be burdened for past and unclaimed liabilities after approved Resolution Plan

2020-08-01T22:06:00.006+05:30

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NCLAT Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_NCLAT Orders, Successful Resolution Applicant can not be burdened for past and unclaimed liabilities after approved Resolution Plan

In the matter of State of Haryana Vs. Uttam Strips Ltd. and Ors. CA(AT)(Ins)No. 319 of 2020.pdf

COC has the requisite power to replace the IRP with Proposed RP even in the subsequent meetings if not replaced by RP in first meeting of COC

2020-08-01T21:42:00.009+05:30

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NCLAT Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_NCLAT Orders, COC has the requisite power to replace the IRP with Proposed RP even in the subsequent meetings if not replaced by RP in first meeting of COC, Section 22 read with section 27 of the IBC,2016

In the matter of Bank of India Vs. Ms. Nithin Nutritions Pvt. Ltd. CA(AT)(Ins)No. 497-501of 2020.pdf

withdrawal application allowed by sc by using powers under article 142

2020-07-12T12:04:00.003+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, withdrawal application allowed by sc by using powers under article 142

3rd Jul 2018 in the matter of Ashoke Kumar Pan Vs. Mithan Ceramic Ltd. & Anr. Diary No. 19031-2018_2018-07-13 12_05_09.pdf

applicability of section 12A after date of admission of Petition

2020-07-12T11:54:00.002+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, applicability of section 12A after date of admission of Petition

3rd Aug 2018 in the matter of Shipra Hotels Ltd. Vs. Value Lines Interiors Pvt. Ltd. Civil Appeal No. 7405-2018_2018-08-21 10_23_03.pdf

resolution of stressed assets.

2020-07-12T11:03:00.002+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, constitutional validity of Sections 35AA and 35AB of the Banking Regulation Act, resolution of stressed assets

2nd Apr 2019 in the matter of Dharani Sugars and Chemicals Ltd. Vs. Union of India & Ors. Transferred Case (Civiil) No. 66 of 2018 In Transfer Petition (Civil) No. 1399 of 2018_2019-04-.pdf

SC asks auditor to examine diversion of funds by Amrapali group

2020-07-12T10:40:00.003+05:30

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2nd Aug 2018 in the matter of Bikram Chatterji & Ors. Vs. Union of India & Ors. Writ Petition (C) No. 940-2017 Connected Matters_2018-09-06 11_57_36.pdf

The Supreme Court again took note of the alleged diversion of Rs 2,765 crore fund collected from home buyers by the Amrapali group of companies and asked the auditor to find out where this money had gone.

The apex court also told Amrapali group to furnish all the bank account details of directors of its 40 group firms.

"If you do not give the correct information, you will be held for contempt," a bench of Justices Arun Mishra and U U Lalit told Advocate Gaurav Bhatia, representing the group.

The court had yesterday observed that diversion of funds collected from investors by real estate developers was a "malady" and it wanted to stop this "nonsense" once and for all.

The bench asked two chartered accountants (CAs), who were present in the court and had handled work of the group till 2015, to find out how this money was diverted or transferred by the company in other projects.

"You are the CA. You are supposed to be the watchdog. We want to know about movement of fund of Rs 2,765 crore. Where that money has gone, we want to know. We want to know the complete movement of this Rs 2,765 crore," the bench told one of the CAs who had handled the work of the group from 2008 till 2015.

"We want you to trace the entire movement of money and inform us," the bench said.

One of the two CAs told the bench that he had handled the work of Amrapali group from 2013 till 2015 and after that had not received any balance sheet from the company.

Bhatia, who was representing the group, said there was no diversion or siphoning of funds by the company.

"We request the auditor to find out how much money has been diverted or transferred to other projects and let project wise report be placed before us," the bench said and posted the matter for hearing on the issue for September 4.

The apex court asked the company to furnish the requisite details to the auditor and directed the internal auditor of the group to cooperate in the process.

During the hearing, the National Buildings Construction Corporation (NBCC) India Ltd told the court it was ready to "undertake" the projects of Amrapali group, which has failed to hand over possession of flats to around 42,000 home buyers.

The counsel appearing for the home buyers also said they have trust in NBCC and instead of handing over the work to any other private co-developer, the corporation should be entrusted with the task of completing the projects.

The bench told Durga Shanker Mishra, secretary in the Union Ministry of Housing and Urban Affairs, that a committee headed by him to look into the issue of home buyers of Noida, Greater Noida and Yamuna Expressway should not have called Amrapali group's representative in a meeting by the panel without apex court's consent.

"When you knew that the matter is sub-judice, you should not have called Amrapali group in the meeting. Your communication (to the group) was used here to scuttle the hearing," the bench said.

The secretary told the bench that he never intended to violate any orders of the court and that the committee was only working to solve the problem of home buyers.

"If you are trying to solve the problem, then go into its root," the bench said, adding, "It is sheer contempt".

It said the committee or the NBCC should first take the court into confidence before proceeding in any matter which was sub-judice.

The bench told NBCC Chairman Dr Anoop Kumar Mittal to come out with a concrete proposal within 30 days as to how it proposed to complete the projects along with a time line of work.

"We have some constraint. These are not those matters which can linger on. There are no fire fighting equipments, no water (where possession has been given to buyers) and in case, any calamity happens, it will be a tremendous risk for the people residing there," the bench observed.

Bhatia said he would compile all the details of bank accounts of the group companies as well its directors and place it before the court within three days.

The top court had cracked the whip on the Amrapali group for what it said playing "fraud" and "dirty games" with the court and ordered attachment of all the bank accounts and movable properties of 40 firms of the real estate major.

It had also directed the group to place before it the details of all of its bank accounts from 2008 till today and ordered freezing of bank accounts of all the directors of its 40 firms, besides attaching their personal properties.

withdrawal of application after issue of expression of interest

2020-07-12T10:11:00.002+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, withdrawal of application after issue of expression of interest, Regulation 30A read with section 12A

1st Nov 2018 in the matter of Brilliant Alloys Private Limited Vs. S. Rajagopal & Ors. Appeal (C) No(s). 31557-2018_2019-01-04 12_19_51.pdf

diversion of more than Rs. 2765 crore by Amrapali Group

2020-07-11T23:46:00.002+05:30

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Supreme Court Orders, Insolvency & Bankruptcy Code, 2016, Landmark Judgments_SC Orders, diversion of more than Rs. 2765 crore by Amrapali Group

1st Aug 2018 in the matter of Bikram Chatterji & Ors. Vs. Union of India & Ors. Writ Petiton (C) No. 940-2017 Connected Matters_2018-09-06 11_53_28.pdf

Preamble of Insolvency and Bankruptcy Code,2016

2020-06-29T21:11:00.002+05:30

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Preamble of Insolvency and Bankruptcy Code,2016

An Act

to consolidate and amend the laws
relating to re-organisation and insolvency resolution
for corporate persons, partnership firms and individuals
in a time bound manner
for maximization of value of assets of such persons
to promote entrepreneurship
availability of credit
balance the interests of all the stakeholders
alteration in the order of priority of payment of Govt. Dues
to establish an Insolvency and Bankruptcy Board of India
for matters connected therewith or incidental thereto.

Compiled By:

Team Apna IP Consultant

TEAM APNA IP CONSULTANT

Amendment in IBBI, Application to Adjudicating Authority Regulations, 2016

Amendment in IBBI, Application to Adjudicating Authority Rules, 2016

Now the applicant has to serve the copy of application to Board also along with Corporate Debtor and to attach the proof of dispatch with application.

Now the IRP has to declare at the time of giving consent in Form-2 the number of assignments in hand and the estimated time of closure of process.

Click Here to download amended regulations

Further Extension of Three Months upto 25th December 2020 for filing of fresh application under IBC

Further Extension of Three Months upto 25th December 2020 for filing of fresh application under IBC

MINISTRY OF CORPORATE AFFAIRSNOTIFICATIONNew Delhi, the 24th September, 2020

Click Here to download notification

Changes in appointment rules of Authorised Representative to represent financial creditors in a class

Changes in appointment rules of Authorised Representative to represent financial creditors in a class

Click Here for download of Amended CIRP Regulations

Corporate Person may replace the liquidator by appointing another insolvency professional as liquidator

Corporate Person may replace the liquidator by appointing another insolvency professional as liquidator

Click Here for download of Amended Voluntary Liquidation Process Regulations

IBBI - Fixation of Fees Payable to Liquidators

IBBI - Fixation of Fees Payable to Liquidators

click here for download amended liquidation process regulations in PDF

INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS BY FINANCIAL CREDITORS U/S 7 OF INSOLVENCY AND BANKRUPTCY CODE, 2016

INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS BY FINANCIAL CREDITORS U/S 7 OF INSOLVENCY AND BANKRUPTCY CODE, 2016

FINANCIAL CREDITOR : SECTION 5(7)

FINANCIAL DEBT : SECTION 5(8)

PERSONS WHO MAY INITIATE CORPORATE INSOLVENCY RESOLUTION PROCESS : SECTION 6

INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS BY FINANCIAL CREDITOR: SECTION 7

SECTION 7 (1)

SECTION 7 (2)

SECTION 7 (3)

SECTION 7 (4)

SECTION 7 (5)

SECTION 7 (6)

SECTION 7 (7)

Once an insolvency professional is appointed to manage the company, the erstwhile directors who are no longer in management, obviously cannot maintain an appeal on behalf of the company

The time limit prescribed in IBC, 2016 for admitting or rejecting a petition or initiation of CIRP is directory for courts and time limit for removal of objections is mandatory for applicants

IBC is not a recovery forum and the IBC provisions cannot be invoked if there is existence of real pre-existing dispute

NCLAT opens window for the Corporate Debtor, to exit the CIRP, and allow to make an out of court settlement with its creditors.

High Court ought not to have proceeded with the auction of the property of the Corporate Debtor, once the proceedings under the IBC had commenced, and an Order declaring moratorium was passed by the NCLT

Expenses fixed by adjudicating authority will be borne by creditor who moves the application

A Corporate Debtor in respect of whom a liquidation order has been made is not entitled to make application to initiate CIRP against other Corporate Debtor

ED has no jurisdiction to attach the property of the Corporate Debtor which is undergoing CIRP without prior approval of the Appellate Tribunal

Successful Resolution Applicant can not be burdened for past and unclaimed liabilities after approved Resolution Plan

COC has the requisite power to replace the IRP with Proposed RP even in the subsequent meetings if not replaced by RP in first meeting of COC

withdrawal application allowed by sc by using powers under article 142

applicability of section 12A after date of admission of Petition

resolution of stressed assets.

SC asks auditor to examine diversion of funds by Amrapali group

withdrawal of application after issue of expression of interest

diversion of more than Rs. 2765 crore by Amrapali Group

Preamble of Insolvency and Bankruptcy Code,2016

Preamble of Insolvency and Bankruptcy Code,2016

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 24th September, 2020