Ipso Facto Termination In India livelaw.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from livelaw.in Daily Mail and Mail on Sunday newspapers.
Summary
One of the key drivers of economic recovery in India will be the efficient movement of capital from inefficient firms to efficient ones. The economic downturn caused by the coronavirus pandemic has been severe, and India’s economy was one of the worst affected in 2020–2021. Though the economy is recovering faster than initial estimates, sustained economic recovery will not take place if stressed businesses cannot restructure their debts properly or if failing firms cannot be resolved efficiently. India’s bankruptcy law is key to solving these challenges.
In 2016 India enacted the Insolvency and Bankruptcy Code, 2016 (IBC), which was a landmark reform to the nation’s financial system and the first comprehensive law to regulate insolvency.
Dewan Housing: Why insolvency resolution processes need a
greater degree of certainty
In November 2019, after reports of a large-scale financial scam,
Dewan Housing Finance Corporation Ltd (DHFL) became the first
non-banking financial company to be referred to the National
Company Law Tribunal (NCLT) for insolvency proceedings.
In February 2020, 24 applicants submitted expressions of
interest for DHFL. Applicants were allowed to bid for either the
entire company or parts of the business. The last date for
submission of a resolution plan was April 16. The deadline
was extended multiple times, including on account of the COVID-19
pandemic, until November 9.
While the Adani group was reportedly among the initial 24
the NCLAT dealt with the issue Can
lease rentals arising out of use and occupation of a cold storage
unit be categorized as operational debt under Section
5(21) of I&B Code?
Section 5(21) of IBC states that Operational debt
means a claim in respect of the provision of goods or services
including employment or a debt in respect of the payment of dues
arising under any law for the time being in force and payable to
the Central Government, any State Government or any local
authority.
Facts
NAFED/Operational Creditor and the Corporate Debtor entered into
a Leave and License Agreement for the usage of cold storage
A case for pre-packs: Insolvency resolution in India could benefit from pre-packs financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.