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SUO LAW

Creditors might recover more than Rs. 80,000 crore via IBC in FY20: ICRA

ICRA Ltd a rating agency said in a press note that Insolvency and Bankruptcy Code (IBC) is expected,  to improve realisations for financial creditors to over Rs80,000 core by the fiscal year 2020, compared to about Rs 66,000 crore recoveries in 2018. Particularly with a 32% increase in the number …

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STERLING BIOTECH, A DEBT RIDDEN PHARMACEUTICAL COMPANY TO BE LIQUIDATED SAYS NCLT

On May 5, 2019, National Company Law Tribunal (NCLT) had requested the liquidation of Sterling Biotech, a debt-ridden pharmaceutical company. This order is a disappointment for its lender as they were expecting that they could pull back the bankruptcy procedure and acknowledge a one-time settlement (OTS) from the promoters. The …

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SUPREME COURT STRIKES DOWN PRE DEPOSIT CLAUSE TO INVOKE ARBITRATION

Clause 25(viii) of the Arbitration and Conciliation Act of 2015 states that a party needs to deposit 10% of the amount claimed before initiating the arbitration.  This particular clause of pre-deposit has been struck down in a recent judgment in ICOMM Tele Ltd v Punjab State Water Supply and Sewerage Board …

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NCLT begins bankruptcy process for Anil Ambani’s Reliance Communications

The lenders of Reliance Communications (RCom) on 07.05.19 moved NCLT to appoint a new resolution professional and  constitute a committee of creditors and the first step to initiate the bankruptcy process of the Anil Ambani owned group company that owes around Rs 50,000Crore to 31 lenders led by State Bank …

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Homebuyers Approach SC requesting a stay on Jaypee Infratech’s dissolution

Supreme court in April 2017 ordered the commencement of insolvency proceedings against Jaypee Infratech Ltd before the NCLT, Allahabad, and asked the interim resolution professional to seek fresh bids and other companies to take over. The corporate insolvency process must be completed within 270 days, if they fail they face …

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Statutory Dues are also Operational debt – NCLAT

On March 20, 2019 the National Company Law Appellate Tribunal (NCLAT) dismissed a pile of appeals in the matter of PR Director General of Income Tax (Admn &TPS) V. Synergies Dooray Automotive Ltd & Ors. They claimed that under section 5(21) of the Insolvency and Bankruptcy Code, taxes are an …

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RBI RELAXES RULES FOR FPI BY EXTRACTING 20% LIMIT

In June 2018, the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) released circulars with respect to debt securities in order to examine the requirements for investment by foreign portfolio investors (FPIs). These circulars directed that FPIs having exposure of 20% of its corporate …

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TWO INDIAN STARTUPs HAVE BECOME UNICORNS AS ON APRIL 2019

What is A Unicorn in startup world? A start-up whose value is considered to be over $ 1 billion. Not even half of the year has passed and India has already witnessed two internet firms who achieved unicorn valuation and the third one is just close to the milestone. On …

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SAT grants Interim stay On SEBI’s orders against NSE officials

Last week SEBI passed an order against three senior officials of National Stock Exchange (NSE)- Ravi Varanasi, head of the membership department, Nagendra Kumar, Head of Membership department, and Deviprasad Singhh, head of collocation support, in the co-location case. They were found guilty by the market regulators in “dark-fibre scam” …

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RBI likely to make a plan to promote lenders to take defaulters to bankruptcy court

RBI’s February 12, 2018  directive that gave defaulting companies 180 days to agree on a resolution plan with lenders, or to be taken to bankruptcy court to recover debts of Rs 2,000 crore and above, has been struck down by the apex court. Further, the apex lender is weighing a …

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