Category Archives: Insolvency and Bankruptcy Code 2016

Provision under the (Indian) Insolvency and Bankruptcy Code 2016

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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Claims in Voluntary Liquidation


Satisfaction of claims is essential part of any liquidation. According to clause (6) of section 3 of the Insolvency and Bankruptcy Code, 2016, “claim” means—

(a) a right to payment, whether or not such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable, secured or unsecured;

(b) right to remedy for breach of contract under any law for the time being in force, if such breach gives rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured, unmatured, disputed, undisputed, secured or unsecured.

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Liquidator in voluntary liquidation


In recent posts, we discussed voluntary liquidation and its commencement. In liquidation, liquidator play crucial role.

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Initiation of Voluntary Liquidation


In last post we discussed here basic provisions of Section 59 of the Insolvency and Bankruptcy Code, 2016 about voluntary liquidation.  As we mentioned, sub – section (3) to (5) of section 59 prescribes conditions related to corporate person registered as company. Similar conditions, in relation to voluntary liquidation of other corporate persons are prescribed in Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. Here, we will discuss.

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Voluntary Liquidation


Part II of Chapter XX of the Companies Act (discussed earlier here and here) has been omitted by the Insolvency and Bankruptcy Code, 2016. In new scheme, there will be voluntary liquidation, not voluntary winding – up as called earlier.  In this post we will discuss Chapter V of the Insolvency and Bankruptcy Code, 2016 consisting of consisting of section 59.

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Transfer of Proceedings


Ministry of Corporate Affairs notified the Companies (Transfer of Pending Proceedings) Rules, 2016 on 7th December 2016. These Rules shall come into effect on 15th December 2016. In this post, we will discuss these rules.

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Notification of IBBI related Sections of IBC 2016


Recently Ministry of Corporate Affairs issued two notifications to enforce selected sections of the Insolvency and Bankruptcy Code, 2016. In this post we will briefly discuss section notified by Notification S.O. 2618(E) dated 5th August 2016 and S.O. 2746(E) dated 19th August 2016.

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PUBLICATION OF INSOLVENCY AND BANKRUPTCY CODE 2016


On 28th day of May 2016, Ministry of Law and Justice published the Insolvency and Bankruptcy Code 2016 for “General Information” of receiving the assent from President of India.

By this publication, nothing including Section 1 of the Insolvency and Bankruptcy Code 2016 come into force. Accordingly, “It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint [Section 1(3)].” This Section is in sharp contrast with Section 1(3) of the Companies Act, 2013, which make it clear that Section 1 of that Act came into force at once.

In case of the Insolvency and Bankruptcy Code, 2016 government is required to notify this Act, including its Section 1.

Further, According to Proviso to sub – section (3) of Section 1, different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.”

Accordingly, the Insolvency and Bankruptcy Code, 2016 shall not come into force at once but in phased manner. This is correct approach for smooth enforcement of any big legislation.

As No section of the Code came into force on 28th May 2016 including Sections 245 to 255, there is not amendment in the Acts mentioned these Sections. Accordingly, the Companies Act, 2013 has no amendment on 28th May 2016.

Please, Readers of this Blog aishmghrana.me read widely circulated Whatsapp, facebook and other Social Media Messages in light of above discussion.

Please note: This blog invite readers to share their comments, suggestions, hardship, queries and everything in comment section. This blog post is not a professional advice but just a knowledge sharing initiative for mutual discussion.