Shardul Amarchand Mangaldas & Co’s Post

There is a pressing need in India for a group insolvency framework. While the IBBI’s working group and the CBIRC have prepared reports on the implementation of a group insolvency framework, the Insolvency and Bankruptcy Code, 2016 has yet to be amended to provide for the same. In their latest article, Sudeshna Guha Roy, Partner, and Alabh Anant Lal, Associate, analyse the CBIRC’s report and the need for a group insolvency framework against the backdrop of judicial precedent. Read our article at: https://lnkd.in/ghgYERbe #bharuchaandpartners #insolvency #CIRP #groupinsolvency #IBC #insolvencycode #IBBI #CBIRC #lexology

Our partner Siddharth Mody shares his views with Financial Express (India) on Insolvency And Bankruptcy Board Of India’s (IBBI) attempt to rationalise the regulatory framework for the insolvency professional entities (IPEs). “With their institutional framework and access to a larger pool of resources, IPEs can manage multiple assignments more effectively than individual IPs, and bring more flexibility and efficiency into the CIRP,” said Siddharth. Read more: https://lnkd.in/grS6WTNk #insolvency #ibbi #cirp #jsa #leadinglawyer #leadinglawfirm

🚀 **Insolvency Compliance Relief Proposed for Insolvency Professionals** 🚀 (June 12, 2024) In a bid to expedite the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), the government is mulling to reduce the compliance burden on insolvency professionals (IPs). In a discussion paper floated on Monday (10.06.2024), the Insolvency and Bankruptcy Board of India (IBBI) has proposed to streamline and reduce the number of CIRP forms filed by IPs by merging, dropping, and revamping certain forms. Currently, the timelines for filing various CIRP forms - nine in total - are linked to different events such as the insolvency commencement date, public announcement, appointment of RP, etc. For more details: Financial Express- https://lnkd.in/gs3tKYC8 #Insolvency #IBC #Compliance #IBBI #CIRP #CorporateResolution #FinanceNews #RegulatoryUpdates #Governance #Finance #Legalupdate #ICSI #ICAI #Lawyers

IBBI seeks to tighten the noose around guarantors of bankrupt firms- The insolvency regulator has proposed that the resolution plan submitted by an investor won’t extinguish the creditors’ right to proceed against loan guarantors to the stressed firm and enforce realisation of guarantees governed through various agreements. The move, suggested in a discussion paper by the Insolvency and Bankruptcy Board of India (IBBI), will make it difficult for personal guarantors of defaulting firms to escape liabilities. The regulator has decided to follow the Supreme Court verdict in the case of Lalit Kumar Jain vs Union of India since the extant insolvency regulations don’t offer much clarity on the guarantee issue. The apex court had ruled that the approval of a resolution plan of a bankrupt firm does not automatically release its guarantors from their liability. Source - ET #ibc #personalguarantee #law #bankrptucy #insolvency #ibbi #nclt #banks https://lnkd.in/d5xzpfbm

The IBBI’s consistent efforts in smoothening the resolution and liquidation process for Corporate Debtors and Personal Guarantors under the Insolvency and Bankruptcy Code, 2016 are evident from the recent amendment whereby the IBBI has removed the restrictions which desisted same insolvency professional to be appointed in both the corporate process as well as the insolvency and bankruptcy proceeding of the Personal Guarantors to the Corporate Debtors. This move will enable the resolution professionals to swiftly collate and validate the claims filed under the insolvency process of the Corporate Debtor and ensure that no contradictory actions qua the Corporate Debtor and its Personal Guarantors are undertaken during the insolvency process, thereby resulting in the derailment of the complete process. In addition to the above, the insolvency professional will be privy to all the crucial and material liabilities of the Corporate Debtor which would indeed assist in the preparation of an elaborative information memorandum for the Prospective Resolution Applicants. - Shravan Chandrashekhar, Senior Associate. https://lnkd.in/gRhwJPim #insolvency #bankruptcy #ibc #legalupdates #insolvencylaws #amendment #ukca #UKCAandPartners

Happy to share my article in Mint on delays in insolvency resolutions for IBC, resulting in defeating its stipulated objective and erosion of assets! When enacted in 2016, IBC was hailed as one of the biggest reforms,and lauded by the World Bank too, resulting in a jump of India's global ranking by 14 notches in EoDB tally to 63rd, but the recent trends have shown that the regime has been mired in troubles, as cases pile up and financial recovery dropped. The IBC has become a saga of delays that can be pinned on slow case admission, frivolous appeals and as observed by a Dy Governor of RBI, a few parties, including loan defaulters using court proceedings to delay resolutions. Further, NCLT system has a pendency of over 20,000 cases on account of capacity constraints! There are sometimes interpretational issues too. These are evident from several illustrative existing cases pending for long, as cited in the above article. There is a need to review and streamline the process, lest the IBC also goes the same way of the Sick Industrial Companies Act, to achieve the desired objectives as stipulated under the Act by the Parliament. Insolvency & Bankruptcy Board of India (IBBI) Ministry Of Corporate Affairs Competition Commission Of India CRISIL Limited #SEBI

𝐈𝐁𝐁𝐈 𝐫𝐞𝐩𝐨𝐫𝐭𝐬 𝐡𝐢𝐠𝐡𝐞𝐬𝐭 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐫𝐞𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐲𝐞𝐚𝐫 𝟐𝟎𝟐𝟒 𝑻𝒉𝒆 𝒉𝒊𝒈𝒉𝒆𝒔𝒕 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒓𝒆𝒔𝒐𝒍𝒖𝒕𝒊𝒐𝒏𝒔 𝒐𝒇 𝒊𝒏𝒔𝒐𝒍𝒗𝒆𝒏𝒄𝒚 𝒄𝒂𝒔𝒆𝒔 𝒉𝒂𝒗𝒆 𝒃𝒆𝒆𝒏 𝒔𝒆𝒆𝒏 𝒊𝒏 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒚𝒆𝒂𝒓 2024 🔸 Resolutions could be arrived in 270 cases in the financial year 2024, in comparison to 189 in financial year 2023 🔸 According to IBBI, the credible threat of IBC has brought about a behavioural change in the mindset of creditors 🔸 IBBI has worked towards ensuring faster resolutions with the help of artificial intelligence in the judicial system 🔸 The IBBI is the process of submitting a report to the government on introducing voluntary mediation as a dispute resolution mechanism under the IBC #IBC #insolvency Insolvency & Bankruptcy Board of India (IBBI)

In a bid to streamline the Corporate #Insolvency #Resolution Process (CIRP) and prevent delays in the execution of the resolution plans, the Insolvency & Bankruptcy Board of India (IBBI) has floated a discussion paper and proposed amendments to the existing regulations. “The proposals presented in the discussion papers are expected to bring about comprehensive changes to make the mechanism robust, more effective and efficient while removing the existing shortcomings in the system,” said Sudhir Chandi, Partner, Resurgent India Limited. Anoop Rawat, Partner, Shardul Amarchand Mangaldas & Co, said, “some of the suggestions such as pro rata or staggered payment to the dissenting creditors as against payment of entire entitlement prior to any payment to assenting creditors need further deliberation in view of recent supreme court judgements on the timing of payment to dissenting financial creditors.” #news #economy https://lnkd.in/dpdeFh_c

The recent notification by the Insolvency & Bankruptcy Board of India (IBBI) is primarily intended to facilitate the resolution of real estate projects. Out of the total CIRPs initiated to date, the real estate sector has 21% of the share in the pool and further study of data would indicate that the proportion of real estate companies heading for liquidation(18%) is proportionately more than what could be resolved(15%) under the Code. This signified the utter need to bring synchronization of the IBC process with the real estate sector Our Partner - Insolvency & Restructuring Practice, Anjali Jain shares her views with businessline : https://lnkd.in/ga9cC-s2 #realestate #thehindu #insolvency #bankruptcy #insolvencyandbankruptcy #areness #arenesslaw #legaladvice #legalinsights #ibbi #realestatecompany #companylaw #regulatorycompliance #transparency #finance