Challenges continue to mount for Byju’s, once celebrated as the posterboy of India’s growing startup ecosystem, as its employees are now considering legal action as they struggle to receive their salaries. The insolvency crisis at ed-tech giant Byju’s has sparked widespread concern among its employees, reported news agency Reuters. The report highlights the growing desperation … Read more
New Delhi: A Mauritius-based Wadia group company that together with its affiliates indirectly holds a stake in Britannia Industries could take centre stage in a face-off between Go First‘s bankers – some of whom want collateral provided by that company overseas for loans taken by the airline to be included in a common security pool, … Read more
The Reserve Bank of India (RBI) believes that the Insolvency and Bankruptcy Code (IBC) is probably the best mechanism for creditors to recover their dues and said the right way to look at its effectiveness would be to compare the resolution value to the liquidation and not the total loans. RBI, in the latest report … Read more
The government has appointed a total of 15 judicial and technical members at the National Company Law Tribunal (NCLT), which is grappling with a shortage of judges. The NCLT adjudicates matters related to the Insolvency and Bankruptcy Code (IBC) and companies law. As many as 9 judicial members and 6 technical members have been appointed … Read more
Seeking to address concerns over the deep haircuts taken by banks in some of the insolvency resolutions, Reserve Bank Deputy Governor M Rajeshwar Rao on Saturday said comparing the outstanding loan amounts with the value realised may not be a ‘reasonable indicator’ to assess the bankruptcy law’s effectiveness. Admitting that there have been concerns, Rao … Read more
Company liquidation as a “going concern”, instead of winding it up and selling the assets bit by bit, is gaining traction, as it helps fetch higher value for creditors while saving the livelihood of employees. The Ahmedabad chapter of the National Company Law Tribunal (NCLT) last week passed an order clearing the liquidation of an … Read more
Seeking to bring in more transparency, the Insolvency and Bankruptcy Board of India (IBBI) on Friday proposed a code of conduct for the committee of creditors under the insolvency law. IBBI, a key institution in implementing the Insolvency and Bankruptcy Code (IBC), has also proposed further measures to strengthen the regulatory framework for liquidation process. … Read more
The Supreme Court on Monday held that the NCLT has jurisdiction to adjudicate disputes, which arises solely or relates to the insolvency of a corporate debtor. The top court, however, cautioned the National Company Law Tribunal (NCLT) and its appellate tribunal (NCLAT) to ensure that they do not usurp the legitimate jurisdiction of other courts, … Read more
New Delhi: In a ruling that will have a bearing on several high-profile insolvency cases, the Supreme Court has clarified that proceedings against a corporate debtor over money-laundering charges would end once a resolution plan is approved, but continue against wrongdoers in the erstwhile management. A three-judge bench led by Justice RF Nariman recently clarified … Read more
(This story originally appeared in on Oct 02, 2020) NEW DELHI: Comptroller and Auditor General G C Murmu has a word of advice for the government as it prepares for a new insolvency landscape for the post-Covid phase. The federal auditor said the Centre should be mindful of preserving the lives of companies and livelihood … Read more