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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 22, Issue June | Jul 15, 2019
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| Editor's Message |
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Divyanshu Pandey
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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. For an effective insolvency regime, it is necessary that debtors and creditors should have an option to opt for out of court negotiated debt restructuring. At times, latter can provide more optimal solutions to both the debtors and creditors. This option was missing in the Indian debt market (largely dominated by banks and non-banking financial institutions) pursuant to the Supreme Court’s order where it struck down RBI’s Framework on Resolution of Stressed Assets (dated February 12, 2018). The RBI filled this void by releasing a revised framework on June 7, 2019. It is early days to pass any judgment on the efficacy of the revised framework. Though given the relaxation in stringent conditions existing under the earlier framework, we all can be helpful that lenders and corporates will explore the option to seek debt resolution under the revised framework. This will ease the burden on adjudicating authorities, it will help in capacity and infrastructure building required for an effective insolvency regime and offer more options and solutions for insolvency resolution.
In this edition, we give an overview of the revised framework for resolution of stressed assets, provide snapshots of some of the important judicial pronouncements along with the news in of events and developments related to insolvency regime in India.
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
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| President's Message |
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A. S. Chandhiok
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Greetings and welcome to the twenty second edition of your Newsletter, covering June - July, 2019!
On July 5, the Union Budget was presented before the Lok Sabha by the Hon’ble Finance Minister. The Budget 2019 is focusing on a better India. Of course, the budget lays down initiatives to position India a global industrial and academic hub. Better infrastructure, connectivity, ease of living and ease of doing business leading to a sustainable India are on the agenda. The efficiency and efficacy in resolution of insolvency, handling bankruptcy, turn around etc. certainly contribute to ease of doing business.
In the first week of last month, FICCI, in association with the Insolvency and Bankruptcy Board of India and the High Commission of India in Singapore, organised a Roadshow in Singapore on on ‘Insolvency and Bankruptcy Code - A New Paradigm for Stressed Assets’. It highlighted progress in implementation of the Code and the emerging investment opportunities in stressed assets in India. Doubts of potential investors and professional firms were cleared with respect to the new insolvency regime and the reforms brought in by the Code.
Two landmark judgments, one by the Hon’ble Supreme Court of India in Swiss Ribbons v. UOI and the other by the Hon’ble NCLAT in Standard Chartered Bank v. Satish Kumar Gupta are continue to storm the minds of professionals in defining the boundaries and interconnection of operational creditors, financial creditors, corporate insolvency resolution process, resolution plan, resolution applicant etc.
Many interesting things are in the following pages. Let us keep the subject alive and look for the highest form of applicability, while maintaining clarity, dexterity and speed.
Best,
A.S. Chandhiok
July 15, 2019.
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| E-Newsletter Editorial Board |
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| Headlines |
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RBI by its circular on a Revised Framework for Resolution of Stressed Assets dated February 12, 2018 (“February 12 Circular”) had established a more stringent regime for debt resolution … read more
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The Supreme Court of India ("Supreme Court”), in the matter of JK Jute Mill Mazdoor Morcha vs. Juggilal Kamlapat Jute Mills Company Limited through its Director & Ors., considered whether trade … read more
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The National Company Law Appellate Tribunal ("NCLAT”), in the matter of RMS Employees Welfare Trust vs. Anil Goel, has observed that the debt due to the Central Government and/or the State … read more
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The case of Jaypee Greens Krescent Homes Buyers Welfare Association vs. Jaypee Infratech Limited was referred by the Allahabad Bench of the National Company Law Tribunal to the Delhi Bench (reference … read more
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A consortium of 26 lenders, led by the State Bank of India had approached the Mumbai bench of NCLT to initiate corporate insolvency resolution process (“CIRP”) against Jet Airways (India) … read more
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Lenders to GMR Chhattisgarh Energy have approved the bid by Adani Power, and the Axis Bank-led consortium of lenders has issued Letter of Intent (LoI) to the bidder. In a statement, GMR … read more
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Hon’ble Mr. Justice M. M. Kumar, President, National Company Law Tribunal (“NCLT”) released a publication titled ‘Understanding the Insolvency and Bankruptcy Code, 2016: … read more
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For the first time IBBI is conducting two-day Advance Workshop on Insolvency and Bankruptcy Code, 2016 on the 30th and 31st of August, 2019 at New Delhi. The workshop is meant for the IPs who are … read more
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The Federation of Indian Chambers of Commerce & Industry (“FICCI”), in association with IBBI and the High Commission of India in Singapore, organised a Roadshow in Singapore on 6th - 7th … read more
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The IBBI, vide its circular dated May 02, 2019, has clarified the procedure for temporary surrender and revival of professional membership of an insolvency professional (“IP”). IPs have … read more
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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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