insolvency 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 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.

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.

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.

The Union Cabinet on Wednesday approved fresh amendments to the Insolvency and Bankruptcy Code aimed at ring-fencing companies facing insolvency from criminal proceedings from offences committed by previous promoters of a company.

A Bench of Justice J.B. Pardiwala and Justice R. Mahadevan delivered the judgment while deciding appeals arising from insolvency proceedings initiated against Takshashila Heights India Private Limited, the developer of the real estate project Takshashila Elegna in Ahmedabad.

Data indicates that resolutions completed within 330 days resulted in a 49% recovery rate under the IBC, while those resolved between 330-600 days achieved a 36% recovery rate. In contrast, resolutions that dragged beyond 600 days resulted in a substantially lower 26% recovery rate.

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.

The Insolvency and Bankruptcy Code, which became operational in December last year, provides for a market-determined and time-bound insolvency resolution process. It is implemented by the corporate affairs ministry.

New Delhi, Jan 2 () Finance Minister Arun Jaitley today said the government has entered into an unchartered territory as far as bankruptcy and insolvency Code is concerned and would continue to modify the law dealing with the issue.