Introduction Financial service providers (FSPs), including banks, Non-Banking Financial Companies (NBFCs), insurance companies, and other regulated financial institutions, play a critical role in the stability and growth of the Indian economy. Their unique functions—involving public deposits, payments, credit intermediation, and safeguarding investor interests—necessitate a distinct resolution framework when these entities face financial distress. The Insolvency…
Introduction India’s business landscape is characterized by large groups of interconnected companies, including parent firms, subsidiaries, and affiliates with deeply intertwined financial and operational relationships. When a company within such a group faces insolvency, the distress often spreads throughout the network, making isolated resolutions inefficient and value-destructive. Traditionally, the Insolvency and Bankruptcy Code, 2016 (IBC)…
Introduction Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016, is a critical and often-debated provision that has fundamentally shaped India’s insolvency landscape. It acts as a gatekeeper, establishing a restrictive framework that determines who is ineligible to submit a resolution plan for a distressed company. The section was introduced to protect the integrity…
Introduction Under the Insolvency and Bankruptcy Code, 2016 (IBC), the Corporate Insolvency Resolution Process (CIRP) is a time-bound mechanism managed by two distinct office-holders: the Interim Resolution Professional (IRP) and the Resolution Professional (RP). The process begins with an IRP, who takes immediate control of the debtor’s assets, stabilizes operations, verifies creditor claims, and forms…
Introduction Financial distress experienced by Micro, Small, and Medium Enterprises (MSMEs) in India is often not an indication of fundamental business weaknesses but rather the result of external shocks like delayed payments, supply chain disruptions, or working capital gaps. Traditional insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) have proven to be costly, time-consuming,…
Introduction The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) has reshaped India’s approach to insolvency by establishing a clear, time-bound, and transparent mechanism aimed at protecting stakeholder interests, ensuring fair outcomes, and supporting economic stability. Within this framework, Form G occupies a pivotal position in the Corporate Insolvency Resolution Process (CIRP), acting…
Introduction In India’s insolvency ecosystem, the Committee of Creditors (CoC) occupies a pivotal position within the Corporate Insolvency Resolution Process (CIRP) framework established by the Insolvency and Bankruptcy Code, 2016 (IBC). After the National Company Law Tribunal (NCLT) admits a company into the CIRP, the interim resolution professional collects and validates claims and forms the…
Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) has radically transformed the corporate debt resolution framework in India by introducing time-bound processes and strengthening creditor rights. While much of the discussion around the IBC revolves around corporate debtors, a crucial aspect is its treatment of personal guarantors to corporate debtors. A personal guarantor is an…
Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) has emerged as a cornerstone of India’s economic reforms, providing a unified and efficient framework for resolving corporate insolvency. At the heart of the Code lies the Corporate Insolvency Resolution Process (CIRP)—a time-bound and creditor-driven mechanism aimed at reviving distressed companies or, when revival is not possible,…
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