7 Difference Between Financial Debt and Operational Debt
Understanding the insolvency process under the Insolvency and Bankruptcy Code, 2016, it’s crucial to grasp the difference between financial debt and operational debt. The core distinction lies in the nature of the debt, which determines the rights, roles, and responsibilities of the creditors. Financial creditors hold a significant influence, particularly in corporate insolvency resolution and […]
The Graduate Insolvency Programme (GIP) is a specialised course offered by the Indian Institute of Corporate Affairs (IICA) at its Manesar Campus. It is one of the most competitive exams specifically for the insolvency professionals as it admits only 52 candidates all over India. The eligibility for the GIP is restricted to individuals with an […]
This article aims at providing clarity on the distinct roles of a liquidator and an insolvency professional. Both of these positions are central to guiding a company through their financial difficulties, although the engagement of both in the insolvency process is distinct. While an IP has the main responsibility with supervising the resolution process having […]
The Supreme Court of India recently delivered a landmark judgment in the case of BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. & Anr, making it clear that a guarantor’s payment can’t Protect Debtors from CIRP. This ruling sets a precedent that part payments by guarantors do not absolve debtors of their full debt […]
A Liquidator: Powers and Functions under IBC, with reference to section 5(18) of the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”), is an insolvency professional who is appointed by the court, which in insolvency law, is the National Company Law Tribunal (NCLT) to manage a company’s liquidation process when it is […]
The NCLAT Upholds Appeal in Insolvency Case recently issued a significant decision in the case of Innovators Cleantech Pvt. Ltd. versus Pasari Multi Projects Pvt. Ltd. In this ruling, NCLAT upheld the appeal in the insolvency case despite several procedural and substantive issues, including delays in filing the appeal and the condonation of delay. The […]
In a strong regulatory move, the IBBI Suspends Insolvency Professional for 2 Years This severe measure follows the failure of IP to properly manage the insolvency resolution of UM Green Lighting Private Limited, showing the commitment of the Regulator to maintaining high standards in the insolvency process. Background of the Case The issues started when […]
In the insolvency and bankruptcy domain, insolvency professionals (IPs) and registered valuers (RVs) have crucial but distinctive roles within the insolvency process under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”). While IPs manage the overall insolvency resolution process, ensuring that it progresses in accordance with legal and regulatory requirements, RVs […]
In an important disciplinary move[1], the Insolvency and Bankruptcy Board of India (IBBI) Suspension of Registered Valuer for a year. It was done to maintain integrity and adherence to professional standards. This decision followed multiple violations, including misleading declarations and unauthorized use of IBBI’s logo and name. Detailed Background of the Case The registered valuer […]
When preparing reports under Section 99 of the IBC, Insolvency Professionals must adhere to crucial guidelines. These guidelines are critical to avoid significant compliance repercussions, recognizing the heavy responsibility vested in IPs by lawmakers. A thorough, factually complete report is necessary, as it not only aids the court and conserves judicial time but also underpins […]