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After an extensive career as an advocate and an equally extensive judicial career including the Supreme Court of India, Justice Ashok Bhushan took over as Chairman of NCLAT in 2021.
From recent IBC amendments to evolving merger control and competition law enforcement, the roundtable examined the legal and regulatory developments shaping India’s commercial landscape and their implications for businesses and investors.
Supreme Court held that reliance on non-existent, AI-generated or hallucinated judicial precedents vitiates adjudication, rendering the decision void in law and warranting its setting aside.
Commemorating a decade of the Insolvency and Bankruptcy Code, the Indian Institute of Corporate Affairs hosted a national conference on India’s restructuring ecosystem alongside the PGIP 6th Batch Convocation. The event featured discussions on cross-border insolvency, distressed assets, early-stage resolution, and the future of India’s insolvency framework.
SAM advised the Triveni Group on all aspects of the transaction until receipt of the final NCLT Order, including structuring the composite scheme, drafting and finalising the scheme, advising on regulatory considerations, and assisting with obtaining approvals from the stock exchanges/ SEBI and the NCLT.
“Once an order of liquidation is passed and a statutory liquidator is appointed, the assets of the corporate debtor are required to be dealt with in accordance with Section 53 IBC i.e. the “waterfall mechanism” and the dues are to be paid in the order of priority set out in the section. Section 238 IBC contains a non-obstante clause giving primacy to the mechanism for distribution of the assets of the corporate debtor in the manner prescribed under the IBC.”
The Tribunal dismissed the petition, recognising the existence of a pre-existing dispute and upholding the relevance of the arbitration clause in the contractual arrangement.
The Court noted that despite filing an appeal before the NCLAT, the petitioners filed the present writ petition challenging the demand notice issued by the Bank.
On Day 3 of the 4th Insolvency Law Academy Annual Conference, discussions centred on climate change and insolvency, institutional challenges facing economic law tribunals, the evolving turnaround framework, and contemporary insolvency scholarship.
Day 1 of the much-awaited 4th ILA Conference featured erudite addresses and insights from leading insolvency experts and distinguished dignitaries on insolvency law and policy, global trends in restructuring, the changing geopolitical landscape, and cinema as a lens and mirror for the economy.
Although the respondent acknowledged execution of works, instalments under the Vendor Settlement Agreement remained unpaid. With repeated acknowledgments of inability to pay and only the first tranche settled, default was established under Section 9 of the Insolvency and Bankruptcy Code, 2016.
“The Corporate Debtor in the present case was running into substantial losses which has now become a profit-making entity earning substantial profits. The SRA — JSW invested huge amounts in modernization and expansion of the entity. Not only that but thousands of employees have been earning their livelihood on account of the Corporate Debtor running as an on-going concern due to the Resolution Plan being implemented by the SRA — JSW.”
The judgment reaffirmed the principle that entries in a corporate debtor’s balance sheet can constitute an acknowledgment of liability under Section 18 of the Limitation Act, provided they indicate a subsisting jural relationship between the parties, even if the financial creditor is not named explicitly. The Court emphasised that such entries must be interpreted liberally and in context, considering the overall tenor of the balance sheet and the surrounding circumstances.
In the present case, initiation of the voluntary liquidation was a voluntary commercial decision taken by the shareholders. It is open to the shareholders, where no prejudice is caused to any stakeholder, to reconsider and reverse their decision, particularly when the process has not proceeded to an irreversible stage, such as distribution of assets.
Cyril Amarchand Mangaldas acted as legal counsel to JSW Energy Limited (as successful bidder) for availing credit facility of INR 12,475 Crore from State Bank of India for implementation of resolution plan.
Reiterating that the commercial wisdom of the CoC is to be given paramount importance for approval/rejection of the Resolution Plan, the NCLT held that the Resolution Plans in the present case met the requirements of the IBC and the IBBI Regulations, and thus, had to be approved.
by Mridul Chitransh* and Milan Asati**
The RP sought exclusion of the time it took for NCLT to decide the applications filed under Section 19 of the IBC regarding the non-cooperation by the Company.