Our Publications

COVID-19 and Contractual Issues

India’s economic activity has come at a halt since last few months due to unprecedented occurrence of Covid-19 pandemic. It has become difficult on the part of various parties to honour their existing contracts, oral or written, relating to sale and purchase of goods or availing and rendering of the services during these hard times. In this regard, we are pleased to share with you our latest article on 'COVID-19 and Contractual Issues.  

IBC: Moratorium vis-a-vis Invocation of Bank Guarantee

The purpose of moratorium is to suspend all pending or fresh suits or proceedings against a corporate debtor and to bar any encumbrance, sale, disposal or alienation of its assets during a moratorium period. In few cases, some resolution professionals had taken a stand that a moratorium will be applicable to the invocation of bank guarantee by the creditor / beneficiary(ies) since the same is given on behest of a corporate debtor. In this Article, we have analysed the legal position regarding invocation of an irrevocable bank guarantee during a moratorium period.    

IBC: Rejection of Claims Need Evaluation

Section 3(6) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) contains a wide definition of ‘claim’. There were several instances wherein IRP had rejected the claim(s) of creditor(s) due to various reasons, which were later allowed by NCLT / higher courts. In this Article, we have discussed some of those instances.

IBC: Committee of Creditors should include Operational Creditors

The operational creditors are not allowed to be a part of CoC and to vote in favour or against such resolution plan except when there is no financial creditor pertaining to the corporate debtor and such operational creditors meet the prescribed criteria under IBC. Such operational creditors have limited rights to receive notice of CoC meeting and to attend such meeting provided their aggregate dues are at least equivalent to 10% of the total debt. In this article, we have discussed and analysed the necessity for including the operational creditor in the committee of creditors.  

Business Prospects of NBFCs in India

In the current banking sector scenario, NBFCs are truly emerging as the new age lenders. In relation to the same, we are pleased to share with you our latest article 'Business Prospects of NBFCs in India'. In this article, we have discussed the growth of NBFCs in India and the future business prospects pertaining to NBFCs.

IBC: APPLICABILITY OF THE MORATORIUM TO PERSONAL GUARANTOR

The insolvency resolution process for revival or restructuring of defaulting corporate debtor can be invoked by any operational creditor or financial creditor by filing an application with the National Company Law Tribunal ("NCLT"). If NCLT is satisfied that the application filed by such operational creditor or financial creditor meets the criteria as laid down under IBC, it may accept the application and shall order the appointment of an Interim Resolution Professional ("IRP"). Once a petition under IBC is admitted by NCLT against the corporate debtor, a moratorium upto 180 days (as extendable by another 90 days) may be granted by NCLT during which all the recovery proceedings against the corporate debtor shall be stayed by virtue of the provisions of Section 14 of IBC. 

One of the contentious issues was whether the benefit of moratorium, as envisaged in Section 14 of IBC, could also be available to the personal guarantor? In this article, we have discussed and analysed the legal provisions and judicial precedents pertaining to the applicability of moratorium on the personal guarantor. 

IBC: Latest Position On Withdrawal of An Application By Creditor(s) Post Settlement

Change in management and control of the corporate debtor is very critical from the perspective of existing promoter(s) since it adversely affects their interest in the company. No promoter(s) wants to lose his / their control over the affairs of the company. Hence, such promoter(s) prefer to settle the matter with the operational creditor or financial creditor before the acceptance of an application by the NCLT for initiating the insolvency resolution process against the corporate debtor. Sometimes, such creditor succeeds in settling the matter before the application is accepted by the NCLT or sometimes, settlement happens post acceptance of the application and appointment of IRP by the NCLT.  

In this article, we have discussed and analyzed the legal provisions and judicial precedents pertaining to withdrawal of the application by the operational creditor or the financial creditor.

Debentures: Is Appointment of a Debenture Trustee Mandatory?

IBC diluting the rights of secured creditors

Enforceability of pre-emptive rights including call & put option

Insolvency and Bankruptcy Code: Insolvency Resolution Process by Operational Creditor / Trade Creditor

RERA: Registration of Real Estate Projects - A Brief Overview

Is Restriction On Transfer of Shares Valid Under Companies Act, 2013

Change in ‘Control’ of an existing NBFC / HFC

Keeping in view the growth of the NBFC Sector in the last few years, there has been a sharp increase in the transactions pertaining to acquisitions of Non-Banking Financial Companies (NBFC / NBFCs). One of the major reasons for the same could be higher return on the investment made by the investors in such NBFCs. Foreign investors are also attracted to Indian NBFCs as India has a growing customer base and more growth can be witnessed as compared to the saturated western markets which offer limited growth opportunities.  This Article highlights the key provisions regarding the change in control of an NBFC / HFC.

Voluntary Liquidation – A Comparative Analysis Between IBC And CA 1956

Government has recently come up with new regulations on ‘Voluntary Liquidation’ which is effective from April 1, 2017. The new regulations provide the process for initiating voluntary liquidation by a corporate person i.e. companies, limited liability partnerships and any other persons incorporated with limited liability. This article ‘Voluntary Liquidation – A Comparative Analysis Between IBC and CA 1956’ highlights the comparison of new regulations with the provisions of CA 1956.