Category Archives: Insolvency and Bankruptcy Code 2016

Provision under the (Indian) Insolvency and Bankruptcy Code 2016

Managing a Going Concern


[A version of this article was published in July – August 2017 issue of Newsletter of The ICSI – WIRC Pune Chapter.]

These days, media hype talk about a new magical law to reduce nonperforming assets from the books of lender banks and financial institutions. There is no such new law. There is a law for insolvency resolution. This law also deals with the possibility of liquidation which may trigger after the failure of resolution of insolvency.

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Amendment in Corporate Insolvency Regulations


Recent case of Jaypee Infratech, question arises where should home-buyers be classified? Are home-buyers financial creditors or operational creditors? In case, home-buyers they classify themselves as operational creditors, will they forego their claim on interest or assured return on their advances? In case, home-buyers they classify themselves as financial creditors, will they forego their claim over homes? This was a game of dice, will company be able to resolve insolvency or face liquidation?

These amendments try to solve these issues.

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Managing Corporate Debtor under Resolution


My well criticized last post “Insolvency Professional ‘Non’ Entities” mentioned, “The Term “Insolvency Professional Entity” has no mention in the Insolvency and Bankruptcy Code, 2016. This is sole creation of anxieties of newly enrolled registered Insolvency Professionals reflected in Regulation 12 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.” Most insolvency professionals, except few like me, are anxious about managing corporate debtor as a going concern. Every worry has its solution.

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Insolvency Professional “Non” Entity


The Term “Insolvency Professional Entity” has no mention in the Insolvency and Bankruptcy Code, 2016. This is sole creation of anxieties of newly enrolled registered Insolvency Professionals reflected in Regulation 12 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. This magic creation has no purpose except one apart from its legal existence.

[This post already published in NIRC – NIRC Newsletter June 2017] Continue reading

Cracking Limited Insolvency Examination


This was first attempt. I studied about 120 hours. But after lot of discussion with many who attempted it with or without success, in first attempt. I made strategy and changed it slightly just 20 study hours before examination on advice.

Last advice I received was not to try too much question. Due to negative marking you should touch your most positive questions. We should care positivity more, if negativity surround.

In first round of 70 minutes, I read all questions and answered most sure one. I marked all other questions for review. In second round of 20 minutes, I reviewed all marked questions and decided not to attempted most of them. Now, out of my target of 70 out of 90, I did only 69 questions.  Now, in final round of 30 minutes, I reviewed all questions once. This did the trick.

But, passing this examination or any examination is not about tricks only. In an examination with multiple choice questions coupled with negative marking need concentration of minor details. Section numbers, penalties, imprisonment, rules, regulations, timelines, definitions and case laws are just a few critical points. No model paper can cover all these in a comprehensive manner. You have to study from original sources. I read law directly from bare published by ICSI – Insolvency Professional Agency.

With age, we may loss our memory and become adamant. Experience usually comes with overconfidence. When new law come into statute books, it changes rule of game more dramatically than we understand.

I was well advised to focus 90% on 60% of syllabus to be covered. I revised all old laws in syllabus in first day of my preparation not to touch again. I cannot memorise all these minor details missed earlier. This was time to focus on new law – the king of the examination concerned. I noted down all possible minor details and left confusing details for practical life outside this examination.

In professional life and examination you cannot take risk with your time. I enrolled for back to back three attempts spread over two weeks. There was another risk for me, the syllabus is about to be revised from fourth week. My failure may require me to cover more diversification and enrichment in new syllabus.

I am indebted to all my family, seniors, critics, friends, relatives and well wishers.

I am thankful to following person more directly for this success, in alphabetical order –

Hari Babu Thota
ICSI
ICSI IPA
Jinesh Kulshreshtha
Lakshmi Arun
Prabhjit Singh Soni
RajKumar S Adukia

Rakesh Kumar Jain

 

Completion of Voluntary Liquidation


Successful completion of a process is as important as its beginning. Voluntary liquidation process is not only a completion of liquidation but result in dissolution of the company.

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REALISATION OF ASSETS AND DISTRIBUTION OF PROCEEDS


Once voluntary liquidation process started; satisfaction of claim becomes primary exercise. For this purpose, this is duty of liquidator handling voluntary liquidation to realize all assets of corporate person and distribute the proceeds.

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