Tag: IBC

The Insolvency and Bankruptcy Code, 2016—- A Primer

The presence of multiple laws, forums and complexities resulted in delays in the timely resolution of the distressed entities and eventually resulting in deterioration of assets and their realizable value. The IBC 2016 laid down a collective mechanism for resolution of insolvencies in the country in a time bound manner and to preserve the economic value of assets of corporate persons, partnership firms and individuals and to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders

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Universal debt relief scheme on cards for small borrowers

Debt Relief Scheme structured under IBC, micro-enterprises, small farmers, artisans, cottage industries to benefit.

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Project Sashakt: 5 prong strategy on stressed asset resolution

Finance Minister Piyush Goyal unveiled ‘Project Sashakt’, a five-prong strategy to deal with non-performing assets. Sashakt aims to strengthen the credit capacity, credit culture and credit portfolio of public sector banks. What is Project Sashakt? Project Sashakt was proposed by a panel led by PNB chairman Sunil Mehta.  The Five-Prong Approach is as under:- 1. Outlining SME Resolution approach for…

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Creditor need not give notice of default to corporate debtor: NCLT

The Mumbai Bench of the National Company Law Tribunal (NCLT) has observed that prior notice is not required to be given by a creditor under the Insolvency & Bankruptcy Code (IBC) to establish that a corporate debtor has defaulted in making repayment.

According to Sec 3(12) of the IBC, default means non-payment of debt when the whole, a part or an instalment of the debt becomes due and is not repaid by the debtor/ corporate debtor as the case may be, said the tribunal.

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