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 14, Issue August | Sep 14, 2018

Editor's Message
Divyanshu Pandey

Greetings and a warm welcome to all INSOL India members and friends.

The month of August saw few more resolution plans getting approved by NCLT in closely watched cases, such as Ruchi Soya, Bhushan Power and Steel, Castex Tehcnologies. While an example was set by way of resolution of Bhushan Steel Ltd, the resolution plan was contested. The outgoing bidders or the promoters approach has been to challenge the approved resolution plans and they are willing to go to the highest court. This has the potential to mar the belief in efficacy of the Code specially from the point of view of foreign investors. The foreign investors may not want to be embroiled in litigation duing the CIRP or post CIRP as long as the resolution has happened through a process laid down under the Code and they have been declared the successful resolution applicant. It is therefore important that any frivolous litigation should not be encouraged by the courts. Even Mr. Raghuram Rajan has suggested in his report to the parliamentary panel that “Higher courts must resist the temptation to intervene routinely in these cases, and appeals must be limited once points of law are settled’. Though it is commendable at the speed which the adjudicating authority, the appellate tribunal and even the Supreme Court is working towards settling the principles of law on issues arising under the Code. The rapidly evolving jurisprudence will definitely allay all fears.

In this editions, we bring to you summaries of two important Supreme Court decisions settling the legal positions, updates in relation to recent circulars issued by IBBI, news and developments in some of the ongoing insolvency resolution processes.


Hope you will find the newsletter informative. As always, please do share your valuable feedback, especially on the topics you would like us to address. Also, I encourage the readers to share your vast knowledge on this subject by contributing articles to this monthly newsletter. You may write in to our editorial team on newsletter@insolindia.com
 

 

 

 

President's Message
A. S. Chandhiok
Greetings!

Welcome to yet another issue of the newsletter!

I am sure you would enjoy reading this issue also. There are interesting news and views in this issue as well. In a decisive judgment titled “Numetal Ltd. v. Satish Kumar Gupta & Others,” the Hon’ble NCLAT has directed to exclude the period the appeal was pending before it for the purpose of counting the total period of 270 days. The Hon’ble Tribunal has also directed one of the Resolution Applicants to make payment of all overdue amount with interest in relation to ‘connected party,’ so as to enable it get the benefit of second proviso to sub-section (4) of Section 30, inserted in the Code on November 23, 2017.

Insolvency matters are increasing in number before the Adjudicating Authorities and new issues are surfacing often. The government’s plan to have eight special Benchesof the Adjudicating Authority/ NCLT is a step in the right direction. We need to have an efficient system in place, so that the history of ‘backlog’ will not haunt the insolvency terrain, where things are fine now. Adding more Benches is just one thing; proper system and meticulous running of the same is a different kettle of fish.

INSOL India assisted the Bar Associations of the Adjudicating Authorities to ensure proper infrastructure development so as to cope with the rising demand. The Hon’ble High Court of Delhi has called for a status report from the Government incompliance with the infrastructure needs of the Adjudicating Authorities as contained in their report to the Hon’ble High Court.

I would like to share a piece of glad news. Because of its fast growth in membership volume, profile and other activities during the past two years, INSOL India has become one of the top ten member associations of INSOL International, earning it eligibility to have representation on the Board of INSOL International. Hon’ble Mr. Justice A.K. Sikri, Judge, Supreme Court of India, who is part and parcel of INSOL India and is its Past President, has been unanimously recommended by the Board of INSOL India to be on the Board of INSOL International.

Insolvency and bankruptcy resolution needs careful handling. Only smart processes with a high degree of transparency and dexterity can bring the desired results.
SIG 24
AAA Insolvency Professionals LLP
ASC Consulting Private Limited
AZB & Partners
Chandhiok & Mahajan, Advocates and Solicitors
Cyril Amarchand Mangaldas
Dhir & Dhir Associates
Duff & Phelps
Edelweiss Asset Reconstruction Company Ltd.
Ernst & Young Global Limited
Grant Thornton India LLP
J Sagar Associates
Kesar Dass B & Associates
Khaitan & Co
KPMG India private Limited
Link Legal
Luthra & Luthra Law Offices New Delhi
PHOENIX LEGAL
Shardul Amarchand Mangaldas Shroff & Co.
Talwar Thakore & Associates
E-Newsletter Editorial Board
Editorial Team
Divyanshu Pandey
Partner, J. Sagar Associates
Editorial Team
Ashish Chhawchharia
Partner - Advisory, Head - Restructuring Services, Grant Thornton Advisory Pvt Ltd
Editorial Team
Anju Agarwal
Director, ASC Consulting Pvt. Ltd.
Editorial Team
Ashwin Bishnoi
Partner, Khaitan & Co.
Upcoming Events and Activities
13th
November, 2018

Venue: The Leela Palace New Delhi, Diplomatic Enclave, Chanakyapuri, New Delhi 110 023

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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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