IBBI inadvertently puts out Aadhaar, PAN info of creditors on website; removes them later
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Last Updated: Jun 27, 2021, 05:17 PM IST
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Synopsis
A senior official said the details came into the public domain inadvertently as the regulator is working on a beta project to host the information of creditors of companies undergoing Corporate Insolvency Resolution Process (CIRP) and liquidation.
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The Insolvency and Bankruptcy Board of India (IBBI) inadvertently put out on its website Aadhaar and PAN details of creditors, including workmen, of some companies undergoing resolution process, and the issues are expected to be sorted out in the next few days.
Lenders to debt-laden companies are increasingly opting for negotiated settlements with the defaulting borrowers as the absence of time-bound resolutions, significant haircuts on advances, and a mounting pile of unresolved cases combine to dim the allure of Indias dedicated bankruptcy courts.
âIts Success May Open It For Other Borrowersâ: Experts Welcome Pre-Packaged Insolvency Process Introduced For MSMEsÂ
IBC will emerge as an invincible tool against future defaults
The Centre has promulgated the IBC Amendment Ordinance to allow a pre-packaged insolvency process for MSMEs.
Experts said that if successful, the regime may be available for other corporate borrowers.
L. Viswanathan, the Partner, Cyril Amarchand Mangaldas, said the government has cautiously introduced the pre-pack regime only for the MSME sector at this point in time, which is welcome. Depending on the success of the pre-pack regime for the MSME sector, one can expect this regime to be made available for other corporate borrowers , he added.
IBC: Avoid intricacies, raise awareness to check liquidations
February 10, 2021
Brace for surge in filings once freeze lifts, says expert
The Centre must brace for a surge in fresh corporate bankruptcy filings after the ongoing pandemic-induced freeze lifts by the end of the financial year. The Insolvency and Bankruptcy Code (IBC) was suspended for six months from March last before being extended to December and subsequently for the full financial year.
Latest Insolvency and Bankruptcy Board of India (IBBI) statistics reveal that at least 73.8 per cent of the Corporate Insolvency Resolution Processes (CIRP) initiated till date has ended up in liquidation. This is attributed to avoidable legal complexities and a lack of matching stakeholder ecosystem and awareness.
The government has again extended the tenure of Justice B L Bhat as the officiating Chairperson of the National Company Law Appellate Tribunal (NCLAT). According to a notification issued by the Ministry of Corporate Affairs, Justice Bhat s tenure has been extended further till his attaining the age of 67 years or till further orders, whichever is earlier. As per the information available on NCLAT website, Justice Bhat s date of birth is April 19, 1954, which means his tenure could be for over three months. Bhat s tenure as officiating Chairperson of NCLAT was scheduled to end on December 31, 2020. This is the fourth extension for Justice Bhat since he was appointed as the officiating Chairperson of the NCLAT on March 15, 2020 for three months.