Financial Creditor

IBC Insolvency & Bankruptcy CodeNCLT Delivers First Impression In India: Insolvency Process Can Continue Despite Assets Of Corporate Debtor Being Attached By Enforcement Directorate

June 13, 2020by Krishna Grandhi and GLC Team

** This blog was co-published as a news item on https://legaldesire.com/insolvency-process-can-continue-despite-assets-of-corporate-debtor-being-attached-by-ed/ The case for the Applicant Resolution Professional was argued by one of our members – Counsel Krishna Grandhi of GLC & Partners. The National Company Law Tribunal (NCLT), Hyderabad Bench, has delivered an important ruling impacting several ongoing tussles between the Prevention of Money...

IBC Insolvency & Bankruptcy CodeWhether The Erstwhile Directors Of An Insolvent Company File An Appeal Under The Insolvency and Bankruptcy Code, 2016?

June 29, 2019by Krishna Grandhi and GLC Team

In the case of M/S Innoventive Industries Pvt. Ltd vs. ICICI Bank & Anr { CIVIL APPEAL No. 8337-8338 of 2017], the Hon’ble Supreme Court for the first time explained the paradigm shift in the law by virtue of the newly enacted Insolvency and Bankruptcy Code, 2016 (“Code”) which consolidates and amends all the insolvency...

IBC Insolvency & Bankruptcy CodeMeaning And Scope Of A Finanical Creditor And Corporate Debtor Under The Insolvency And Bankruptcy Code, 2016

June 28, 2019by Krishna Grandhi and GLC Team

In the case of IndiaBulls Housing Finance Ltd. vs. Rudra Buildwell Projects Pvt. Ltd [Company Appeal (T) (insolvency) No. 172 of 2019] the question before NCLT is whether the appellant can claim to be a ‘Financial Creditor’ under the Insolvency and Bankruptcy Code, 2016 (“Code”) or not? In the above case, a tripartite agreement was...

IBC Insolvency & Bankruptcy CodeDuties Of Interim Resolution Professional Under Section 18 Insolvency And Bankruptcy Code, 2016

June 25, 2019by Krishna Grandhi and GLC Team

In the case, Encore Asset Reconstruction Co. Pvt. Ltd vs. Ms. Charu Sandeep Desai & Ors. [Company Appeal (AT) (Insolvency) No. 719 of 2018] an appeal has been made by the appellant against the order passed by the NCLT in the matter of State Bank of India Vs. Calyx Chemicals & Pharmaceuticals Ltd. whereby the...

IBC Insolvency & Bankruptcy CodeWhether the Financial Creditor Can Claim Voting Rights Against the Total Loan Amount of the Contract or Individual Amount with Respect to the Corporate Debtor, IBC

June 10, 2019by Krishna Grandhi and GLC Team

In the case of Capri Global Capital Limited Vs. Value Infracon India Pvt. Ltd.(Through its Resolution Professional Mr. Sanjay Kumar Singh) & Anr.( Company Appeal (AT) (Insolvency) No. 29 of 2019) the main issue before the NCLAT was whether the financial creditor can claim voting rights against the total loan amount of the contract or...

IBC Insolvency & Bankruptcy CodeWhether Regulation 30A OF IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 Is Directory Or Mandatory In Nature?

May 8, 2019by Krishna Grandhi and GLC Team

In the case of Brilliant Alloys Private Limited Vs. Mr. S. Rajagopal & Others [Special Leave to Appeal (C) No(s). 31557/2018], the Hon’ble Supreme Court allowed the withdrawal of the Corporate Insolvency Resolution Process (“CIRP”) application under the Insolvency and Bankruptcy Code, 2016 (“IBC”) after the issuance of the invitation for expression of interest. The appeal...

IBC Insolvency & Bankruptcy CodeApplicability Of The Limitation Act, 1963 To The Provisions Of The Insolvency And Bankruptcy Code, 2016

May 1, 2019by Krishna Grandhi and GLC Team

Since the inception of the Insolvency and Bankruptcy Code 2016 (“Code”), there has been an ambiguity with respect to the applicability of the Limitation Act, 1963 (“Limitation Act”) to the provisions of the Code. The Hon’ble Supreme Court in the case of B.K. Educational Services Private Limited v. Parag Gupta and Associates [Civil Appeal No....

IBC Insolvency & Bankruptcy CodeDemarcation Between Financial Creditors And Operational Creditors Under the Insolvency and Bankruptcy Code, 2016

January 29, 2019by Krishna Grandhi and GLC Team

From the time the Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force, there has been some ambiguity regarding the differentiation of a creditor as a Financial Creditor (“FC”) or as an Operational Creditor (“OC”) and the constitutional validity of such differential treatment. As per Section 5A of the IBC, a Financial Creditor “means any...

IBC Insolvency & Bankruptcy CodeSection 138 Of The Negotiable Instruments Act, 1881 And Moratorium Period Under The Insolvency And Bankruptcy Code, 2016

January 7, 2019by Krishna Grandhi and GLC Team

The moratorium period under Section 14 of The Insolvency and Bankruptcy Code, 2016 (“IBC”) talks about various proceedings and transactions that are given a pause while Corporate Insolvency Resolution Process (“CIRP”) is in process. The rationale behind such prohibition is to let the negotiations take place without any restriction which might occur due to destruction...

IBC Insolvency & Bankruptcy CodeAdjudicating Authority Has The Ultimate Power To Reject Or Accept A Resolution Plan Under The Insolvency And Bankruptcy Code, 2016

November 25, 2018by Krishna Grandhi and GLC Team

The Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force with three main objectives, i.e., “promote entrepreneurship, availability of credit and balance the interests of all the stakeholders”. To achieve and balance all three objectives, it is important that the Resolution Plan (“RP”) accepted by the Committee of Creditors (“CoC”) caters to the need of...

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