Welcome to INSOL India Newsletter Volume 16, Issue October | Nov 17, 2018

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

 

We are pleased to share another edition of our monthly newsletter with recent developments in the field of insolvency. As anticipated in the last edition, India’s ranking in World Bank’s Ease of Doing Business rankings has improved. The improvement in rankings by 23 places is an encouraging sign and hopefully India will be soon within the top 50. The Supreme Court judgment in Essar Steel corporate insolvency resolution goes a long way in providing jurisprudence on interpretation of one of the most controversial sections under the Code, Section 29A and we have provided a summary in this newsletter.  Our Supreme Court has also settled an important question in respect of applicability of Limitation Act to proceedings under the Code specially those proceedings which were brought before the secondment amendment to the Code. 

 

The changes to the Liquidation Regulations will give more flexibility to a liquidator in disposing assets forming part of the liquidation estate and clarifies that secured assets cannot be disposed if such secured assets have not been relinquished to the liquidation estate. Changes to Insolvency Professional regulations, Insolvency Professional Agencies regulations and Information Utility regulations, are aimed to improve the governance and functioning of these important stakeholders in insolvency resolution and will facilitate effective implementation of the Code. 

 

I 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 their vast knowledge on this subject by contributing articles to this monthly newsletter. You may write in to our editorial team at newsletter@insolindia.com

 

 

 

 

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 Indiato 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.