India enacted wide reaching reforms in the area of insolvency and bankruptcy laws. The enactment of Insolvency and Bankruptcy Code, 2016 (“the Code”) to overcome the shortcomings of the erstwhile legislation on the subject has had a significant impact even in the short term. Since the enactment of the Code in 2016, insolvency law in India has been one of the most active legal areas.
The Code has allowed financial creditors to have a significant role in company, created opportunities for investment for investors and led to significant litigations between parties. It has had impact across various industrial sectors, ranging from real estate to the steel industry.
Insolvency at L&S
The team at Lakshmikumaran & Sridharan (L&S) supports clients with advisory as well as litigation services. The strong expertise in core commercial and corporate laws, coupled with the understanding of various business sectors enables the firm to deliver holistic and effective guidance to the Clients.
The team at L&S has been involved in several matters involving the Code, representing both creditors as well as debtors before various company law and appellate tribunals. The team has represented creditors in various sectors, such as power, heavy industries, tourism, and financial sector. Specifically, the team has rendered advisory and consultancy services to creditors on various potential issues that could arise as a result of an interplay between the Code and other applicable laws. The team has also initiated insolvency resolution process and sought relief before the NCLT on behalf of various Clients. The team supports with a strategic combination of advisory and litigation throughout the course of the insolvency proceedings to our Clients in order to safeguard their financial interests.
The team is also well-positioned to deliver strategic advice to asset reconstruction companies. The team aids and guides in the assessment of assets and liabilities of a stressed company and accordingly advises the risk involved in taking over businesses of stressed companies undergoing resolution process.
Timelines for Corporate Insolvency Resolution Process - The 2019 amendments and their ambiguities
NEWSNo requirement under IBC for Resolution Plan to match liquidation value of Corporate Debtor
February 2020 Protection to Corporate Debtors for offences prior to commencement of CIRP – IBC (Amendment) Ordinance, 2019 promulgated
December 2019 Insolvency - Secured creditor opting out of liquidation process cannot sell assets to persons ineligible to be resolution applicant