The NCLAT reiterated its stand taken in an earlier case that it is always open to the Adjudicating Authority/Appellate Tribunal to ‘exclude certain period’ for the purpose of counting the total period of 270 days, if the facts and circumstances justify exclusion, in unforeseen circumstances.
When the money was advanced by one party to the other as financial assistance / loan and in the process, assured that future material manufactured by the latter is available to itself, it cannot be treated as an advance for future supply of materials and it shall, for all reasons, be treated as Financial Debt. This was discussed in length in a recent order passed by the NCLAT on September 4, 2019, in the matter of Mr. Gaurav Agrawal, Director, M/s. Albus India Ltd. Vs. M/s Tuf Metallurgical (P) Ltd. & Anr.
The NCLAT in the instant case held that “once the liquidation estate / assets of the ‘Corporate Debtor’ under Section 36(1) read with Section 36 (3), do not include all sum due to any workman and employees from the provident fund, the pension fund and the gratuity fund, for the purpose of distribution of assets under Section 53, the provident fund, the pension fund and the gratuity fund cannot be included”.
In the instant case, the Supreme Court, after a detailed analysis, held that a registered trade union which is formed for the purpose of regulating the relations between workmen and their employer can maintain a petition as an operational creditor on behalf of its members under the Insolvency and Bankruptcy Code, 2016.
The Insolvency and Bankruptcy Code, 2016 has definitely aided in resolution of various businesses to run them on going concern basis. The actual success of the code is when the number of CIRPs resulting in resolutions exceed those resulting in liquidation which is not the case as on today. The article targets at highlighting various facts and statistics in terms of the initiation and status of the CIRPs including those which are resolved or liquidated.
The Union Cabinet approved various amendments under the Insolvency Bankruptcy Code, 2016 to fill critical gaps in the corporate insolvency resolution framework as enshrined in the Code, while simultaneously maximizing value from the Corporate Insolvency Resolution Process (CIRP) and to ensure maximization of value of a corporate debtor as a going concern while simultaneously adhering to strict timelines.
The article touches upon each of the amendment approved by the Cabinet along with an infographic which contains the major areas under IBC where amendments are approved which can be referred for easy recollection of the amendments approved by the Cabinet.
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