Therefore, the Apex Court overturned the order of NCLAT and held that the said mortgage transaction done was a preferential transaction under Section 43 of the IB Code, without considering it necessary to deal with whether these transactions are undervalued and/or fraudulent.
While the move taken by the Government may offer relief to stressed companies, certain provisions in the Ordinance can spring unwarranted consequences and open up the possibility of gross misuse of the leeway by wilful defaulters and fraudulent promoters.
The Hon'ble Union Finance Minister, Smt. Nirmala Sitharaman convened a press conference on 24th March 2020 to make announcements on statutory and regulatory compliance matters. The Minster of State for Finance and Corporate Affairs, Shri. Anurag Singh Thakur was also present. Amongst various other announcements made, a specific announcement was also made with respect to the... Continue Reading →
Further to our Part II, in this Part we have dealt with the interpretation of the term "Dispute" under the Code. The Code being a new legislation is going through several judicial tests and every test is leading to a new interpretation of the provisions of the Code resulting in inconsistency between them. Several judgements... Continue Reading →
The Code offers a comprehensive and uniform insolvency legislation which deals with partnerships, firms and companies. The aim is to construct a separate framework for bankruptcy resolution. A Financial Creditor or an Operational Creditor can initiate a CIRP against a Corporate Debtor at the National Company Law Tribunal (“NCLT”). Further to our Part I, in... Continue Reading →
The Insolvency and Bankruptcy Code, 2016 (“Code”), has attracted attention since its inception and it is being closely watched since the day it has come into effect, as it brings along with itself a promise to change the face of corporate insolvency process in India. The Code is a result of years of grappling with... Continue Reading →