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| INSOL India is an independent leadership body representing practitioners and other associated professionals specialising in the fields of restructuring, insolvency and turnaround. It is an association with an architecture that facilitates key stakeholders to come together and share experiences while preserving their independence. |
Welcome to INSOL India Newsletter Volume 5, Issue November | Dec 05, 2017
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| Editor's Message |
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Editorial by Ashish Chhawchharia
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Greetings and warm welcome to all INSOL India members and friends.
Undoubtedly, November marks yet another defining moment in the direction of strengthening the Insolvency and Bankruptcy Code (IBC). Last week, the Union Cabinet has passed an Ordinance amending the IBC with the objective of barring dishonest promoters of an insolvent company from regaining control under the IBC. Also, IBBI amended Insolvency resolution process regulations on 7th November defining additional responsibilities on the RP and seeking additional information about the resolution applicants and other connected persons to enable prudent decision making by the lenders.
The amendment shows the government's & commitment of making the code stronger by bringing clarity to the roles and responsibilities of key stakeholders. The impact of these amendments on the existing companies where CIRP process has been initiated and for all future cases is likely to be far-reaching.
We continue to bring you the latest updates on the insolvency landscape in India. This edition has the details on modification in syllabus for Limited Insolvency Examination and the need for the right training of insolvency practitioners (IP) and bankers. The rapid pace of change in insolvency mechanism in India calls for a well-planned training structure. There must be a proper training pattern maintained so that IPs as well as bankers can function smoothly in accordance with the code without wastage of efforts.
Another significant development is the government constituting an Insolvency Law Committee consisting of 1 chairperson, 12 members and 1 member secretary with the approval of the competent authority.
Hope you will find the newsletter informative. As always, please continue sharing your valuable observations and feedback with us at contact@insolindia.com.
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| President's Message |
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A. S. Chandhiok
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True, the Insolvency and Bankruptcy Code provides a framework for insolvency resolution of corporate persons in a time bound manner with maximisation of value of assets of such persons. However, since the Codes enforcement, various issues have come to the fore. More than three hundred cases have been registered and about five resolution plans stand approved. Some are under judicial scrutiny, in appeal.
All these paved ways for the oft-heard question-does the Code need amendment? Judicial pronouncements also paved way for this kind of a question. Because of this, the President promulgated an ordinance on November 23, 2017, prohibiting promoters and persons connected there-to from submitting resolution plans.
Of course, this can be seen as a trouble-shooting amendment. However, when implementation goes wider and more and more resolution processes set in, newer issues are likely to arise. As all processes and procedures have an element of evolvement, challenges can be expected any time.
Many issues will be there, of great importance and consequences, which if not addressed timely, can give rise to difficult situations. Let us keep abreast of these, and see how improvements could be brought in.
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| E-Newsletter Editorial Board |
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DISCLAIMER
INSOL India is a society registered under the provisions of Societies Registration Act XXI of 1860. A certificate to this effect was issued by the Registrar of Societies, Government of National Capital Territory of Delhi on 11th January 2000.
The formation of INSOL India fulfilled the long cherished desire of the members of the legal fraternity, chartered accountants, company secretaries and other persons, bodies and institutions in India, to have an association to promote closer co-operation, exchange of ideas, dissemination of information and an empathetic understanding of law of insolvency and related lawhe formation of INSOL India fulfilled the long cherished desire of the members of the legal fraternity, chartered accountants, company secretaries and other persons, bodies and institutions in India, to have an association to promote closer co-operation, exchange of ideas, dissemination of information and an empathetic understanding of law of insolvency and related laws.
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