Going by a recent order of the NCLT Chennai bench, in the case of Ashok Magnetics Limited, this critical aspect of the code is likely to be reviewed Since its inception, the Insolvency and Bankruptcy Code (IBC) has been hailed as a monumental reform that would help tackle the problem of bad loans plaguing the […]

Under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), the National Company Law Tribunal (NCLT) in admitting a petition by a financial creditor is concerned only with the existence of a default of a financial debt, not whether such default is admitted or disputed by the debtor. The Supreme Court in Innoventive Industries v ICICI

The government recognised the economic impact of covid-19 on businesses by enacting the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020. The ordinance, among other measures, inserted section 10A into the Insolvency and Bankruptcy Code, 2016, which suspends for six months the operation of sections 7, 9 and 10, the sections triggering insolvency proceedings, in respect

The Insolvency and Bankruptcy Code, 2016 (IBC) was conceived as a solution to the growing problem of non-performing assets. Together with the Reserve Bank of India’s framework for the resolution of stressed assets, the IBC is to be used to resolve viable businesses in a timely fashion. Banks and financial institutions were given precedence in