insolvency and bankruptcy code

Trial Against Former Promoters Continues

Co Submitted Resolution Plan In Oct 2024, Reached Settlement With Lender In Jan

The Supreme Court has taken suo motu action, highlighting severe infrastructure and vacancy issues plaguing the National Company Law Tribunals (NCLT). These deficiencies are causing significant delays in crucial insolvency and bankruptcy cases, potentially undermining the insolvency and bankruptcy code's objectives. The court emphasized the urgent need for immediate remedial measures to prevent further frustration of the IBC's purpose.

The Lok Sabha has approved the insolvency and bankruptcy code (Amendment) Bill, 2025, a move lauded by Finance Minister Nirmala Sitharaman for revitalizing India's banking sector. The amendments aim to expedite case admissions and curb system misuse, building on the IBC's success in resolving over half of stressed assets and improving corporate governance for rescued firms.

The insolvency resolution of Jaiprakash Associates Ltd. is embroiled in a dispute over the approval of Adani Enterprises' bid over Vedanta's higher offer. Vedanta alleges procedural unfairness and a "commercial conspiracy," challenging the Committee of Creditors' reliance on "commercial wisdom" over value maximisation.

Finance Minister Nirmala Sitharaman has introduced significant amendments to the Companies Act, aiming to decriminalize procedural defaults and boost flexibility in share buybacks. The proposed changes also introduce new executive compensation instruments and streamline merger processes. Special benches for the National Company Law Tribunal are planned, alongside relaxations for small companies regarding CSR requirements.

Senior advocate Shyam Divan, appearing for one of the companies, termed the amendment a draconian provision which has the potential to crush the entire real estate sector.

Hero Electric Vehicles Pvt. Ltd. has been ordered for liquidation by the NCLT after insolvency resolution efforts failed. No resolution proposal secured the necessary 66% creditor approval, leading to the tribunal's decision under the IBC. The company's insolvency proceedings began in December 2024.

Finance minister Nirmala Sitharaman on Thursday introduced a bill in the Lok Sabha to amend the insolvency and bankruptcy code. The insolvency and bankruptcy code (Second Amendment) Bill, 2019 was approved by the Union Cabinet on Wednesday.