No relief to personal guarantors under bankruptcy code: Supreme Court
The Supreme Court on Thursday in a significant ruling upheld the constitutionality of Insolvency and Bankruptcy Code (IBC), including allowing creditors to initiate insolvency proceedings against personal guarantors. The Court dismissed over 200 petitions that challenged the legal validity of the code. The provisions relating to personal guarantors were introduced under the Insolvency and Bankruptcy…
Read article
Insolvency and Bankruptcy Code (IBC): List of restraints on FSPs during the moratorium period
Today (29.11.2019) RBI has filed an application under insolvency and liquidation proceeding against “ Dewan Housing Finance Corporation Limited” under Section 227 read with clause (zk) of sub-section (2) of Section 239 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rules 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings…
Read article
How Insolvency and Bankruptcy Code (IBC) could benefit banks?
The Insolvency and Bankruptcy Code (IBC) 2016 is the bankruptcy law of India, amended as Insolvency and bankruptcy code (amendment) Bill 2017. The new law seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The mounting NPAs in the banking sector and other financial institutions have crippled lending activities…
Read article
NeSL: A repository of legal evidence holding the information pertaining to any debt/claim
National E-Governance Services Limited (“NeSL”) is a Union government company and is governed by the provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”) and Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017. It is appointed by the Insolvency and Bankruptcy Board of India (“IBBI”) as an Information Utility (“IU”). As a regulated…
Read article
IBC ordinance: Now home buyers are on par with banks in the resolution process
The ordinance passed by Government of India on Wednesday (June 06, 2018) to Insolvency and Bankruptcy Code (IBC) treats home buyers in ailing real estate companies on par with banks in the resolution process. The new IBC ordinance tags the buyers of home buyers with financial creditors which empowers even a single home buyer to…
Understanding Credit Default, Stressed Assets, and Non-Performing Assets (NPAs)
Credit Default, Stressed Assets, and Non-Performing Assets (NPAs) are interrelated concepts within the domain of credit risk management. While often used interchangeably, each term has a distinct meaning and relevance in assessing the financial health of lending institutions and borrowers. Credit DefaultCredit default refers to the failure of a borrower to fulfill the repayment obligations…
Read article