Posts

Outstretching section 29A to realisations by secured creditors: Will it work?

-Sikha Bansal (resolution@vinodkothari.com)

Freedom is not worth having if it does not include the freedom to make mistakes.

                                                                                                                                                                    Mahatma Gandhi

If one collates all the discussion going on around section 29A of the Insolvency and Bankruptcy Code, 2016 (‘Code’), the concept has been outstretched so far that the idea of Mahatma, at least when applied to entrepreneurial traits, seems to be a distant dream.

In a recent ruling, State Bank of India v. Anuj Bajpai (Liquidator)[1], Hon’ble National Company Law Appellate Tribunal (‘NCLAT’) held that a secured creditor realising assets outside of liquidation under the Code cannot sell the assets to persons ineligible under section 29A. Read more

Group Insolvency: Moving from “Entity” to “Enterprise”

-Sikha Bansal (resolution@vinodkothari.com)

 

Recently, the Working Group led by Shri U.K. Sinha, submitted its Report on group insolvency, recommending a complete framework to facilitate insolvency resolution and liquidation of corporate debtors in a “group”. The Report was submitted by the working group on 23.09.2019.

See our presentation here on various aspects of group insolvency proceedings as suggested by the Working Group, and includes discussion on procedural coordination versus substantive consolidation along with case laws and case studies.