Welcome to INSOL India Newsletter Volume 6, Issue December | Jan 01, 2018

Greetings and warm welcome to all INSOL India members and friends. This month marks completion of one year of the CIRP regulations coming into force. In last one year, there have been many learnings which have proven to be of great value for all the stakeholders. The Government and the IBBI, keeping with the spirt of the Code (being a dynamic and evolving legislation), has taken prompt steps to iron out the creases. As we march forward to the new year, we all await successful resolution of one of the large twelve cases referred under the Code. A successful resolution of one of these cases, will certainly help in strengthening the frame work of the Code and in instilling greater reliance on the Code.

In the coming year, it is expected that the final set of regulations in relation to individual’s bankruptcy and modification to the CIRP regulations, Liquidation regulations and other regulations notified under the Code will be finalized and issued. The Reserve Bank of India has also instructed the banks and financial institutions (as reported in this edition) to put appropriate systems in place for filing and recording of information with NeSL, the first IU registered under the IU Regulations. With this, all the four limbs of organizational framework of the Code (IP, IPA, Adjudicating Authority and IU) are functional to aid effective implementation of the Code. In the last issue, we reported constitution of Insolvency Law Committee which will be making recommendations for improving the processes under the Code and steps to be taken for realizing the objectives of the Code.

There is a lot to look forward to in relation to developments under Code, next year. At the same time, we, as stakeholders, must continue to ensure that the objectives of the Code are realized in letter and spirit and to translate our experiences for betterment of the Code and its processes. We bring you the latest updates on the insolvency landscape in India in this edition and will continue to keep you all updated in the coming year. Hope you will find this edition informative and helpful.

As always, please continue sharing your valuable observations and feedback with us contact@insolindia.com 
 

On behalf of INSOL India, I wish all are members and readers a very fruitful 2018. 2017 has been an eventful year for the insolvency regime. May the year 2018 further strengthen and streamline implementation of Insolvency and Bankruptcy Code, 2016.  

Insolvency and Bankruptcy Code (Amendment) Bill, 2017 has been introduced in Lok Sabha seeking to repeal the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017. The amendment bill makes some amendments to the Ordinance too. One would eagerly, await the final amendment Act and examine its true effect.

The insolvency jurisprudence is developing manifold. Many important questions stand answered by judicial pronouncements right from the Apex Court, Appellate and the Adjudicating Authorities, adding value and strength to implementation of the Code. The Insolvency and Bankruptcy Board of India continues to lead the enforcement of the Code from the front and, whenever and wherever required, has promptly come out with the amendments/clarifications.

India has so far weathered the contagion of the global financial crises wonderfully. Everyone is looking at the international monetary fund projection of India to return to 7% path very soon. The resolution process in the 12 cases filed by Financial Institutions are likely to be completed soon. Each of stakeholder is awaiting their final outcome.

The first insolvency utility stands under the Code and would require its reputed hand for strengthening the working of the Code. Each of us connected with the Code must continue to work with determination and total dedication and apply the best of ourselves to achieve the goal of Code.

INSOL India is awaiting the personal insolvency regime to be brought into operation which will open up new gates for insolvency professionals.

I am thankful to the editors for their untiring effort for the newsletter.