Liquidation & Winding-up – Vinod Kothari Consultants

In the context of an auction sale conducted during liquidation or by a secured creditor, the sale certificate serves as a critical document, evidencing the transfer of title to the purchaser upon confirmation of the sale. Its legal nature and the procedural requirements such as registration and the payment of stamp duty have often been a subject of scrutiny and debate.

The Hon’ble Supreme Court in the matter of State of Punjab & Anr. v Ferrous Alloy Forgings P. Ltd. & Ors. reaffirmed the principle that a sale certificate issued by the authorised officer is not compulsorily registrable under section 17(1) of the Registration Act, 1908. The Court further clarified that compliance with Section 89(4) of the Registration Act, which provides for forwarding of a copy of the sale certificate by the authorised officer to the registering authority, is sufficient to satisfy the statutory requirements. However, in instances where the purchaser voluntarily presents the original sale certificate for registration or uses the same for some other purpose, the document is liable to attract stamp duty as prescribed under the Indian Stamp Act, 1899, or the relevant state enactments governing stamp duty.

This article examines the legal framework governing sale certificates in auction sales, analyzing the procedural and practical nuances associated with their registration and the evolving interpretations rendered by courts in the context of SARFAESI Act and Insolvency and Bankruptcy Code, 2016.

Income tax issues in IBC

April 26, 2023/0 Comments/in Insolvency and Bankruptcy, Liquidation & Winding-up, Resolution /by Team Resolution

-Vinod Kothari and Sikha Bansal | finserv@vinodkothari.com

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Analysing Current Issues in Liquidation under IBC & Future Reforms

January 20, 2023/0 Comments/in Insolvency and Bankruptcy, Liquidation & Winding-up, Resolution, Schemes and Arrangements /by Staff

– Sikha Bansal & Barsha Dikshit, Partner | resolution@vinodkothari.com

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Regulatory developments in Insolvency and bankruptcy law in 2022 – a quick round-up

December 30, 2022/0 Comments/in Case laws, Insolvency and Bankruptcy, Liquidation & Winding-up, Resolution /by Staff

– Sikha Bansal, Partner & Barsha Dikshit, Partner | resolution@vinodkothari.com

IBC, in a very short span of its life, has undergone multifarious amendments. In 2022, there were no amendments in the Code, but almost all regulations were amended. Majority of the amendments aimed at compressing the timelines. Few other amendments filled the gaps in law and provided clarity.

A quick snapshot of the key changes introduced in the CIRP regulations, Liquidation regulations, voluntary liquidation regulations and IP regulations, in the year 2022 is provided below. A brief discussion can also be referred to in our video on the same.

Key Amendments in IBBI (Insolvency Resolution Process For Corporate Persons) Regulations, 2016^{^[1]}

IBBI introduced several changes in the IRPCP Regulations vide Notifications dated 9th February, 2022, 14th June, 2022, 13th September, 2022, 16th September, 2022, and 20th September, 2022. The amendments mostly focused on reducing the timeline of corporate insolvency resolution process, removing ambiguities, facilitating IPs thereby increasing value and realisation for stakeholders.

Resolution Professionals have been empowered to invite EOI for resolution plans for one or more assets of CD with approval of CoC, if no resolution plan for CD is received within the given timeline. Resolution plan shall also provide for the manner of pursuing avoidance transaction application and distribution of realisation therefrom, if any. Timelines for certain activities during CIRP have been reduced.

Further, the regulations now also provide for payment of a regulatory fee at the rate of 0.25% of the realisable value under approved resolution plan to the Board w.e.f 1^st October, 2022 which will form part of CIRP cost.