PHDCCI NCLT & IBC Committee
Virtual Roundtable on IBBI Discussion Paper Dt. 10.05.2024 on "Strengthening the Process of Issuance of Record of Default of Information Utility.
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Virtual Discussion on "Decoding Supreme Court Judgements under the IB Code" on Saturday, 23rd November 2024
The NCLT & IBC Committee of PHDCCI organized Virtual Discussion on "Decoding Supreme Court Judgements under the IB Code" on Saturday, 23rd November 2024, from 4:30 PM to 6:00 PM.
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The session, led by Mr. Abhishek Anand, Co-Chair, NCLT & IBC Committee, PHDCCI
focused on two landmark Supreme Court judgments: GLAS Trust Company LLC vs BYJU Raveendran & Ors. (Decided on 23.10.2024) and State Bank of India & Ors. v. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch & Anr. (Jet Airways) (Decided on 07.11.2024).
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These judgments were analyzed in detail, shedding light on their legal interpretations and practical implications for stakeholders under the Insolvency and Bankruptcy Code.
The webinar witnessed active participation from more than 50 participants, making it an engaging and insightful platform for knowledge sharing.
Conference on Insolvency & Bankruptcy Code, 2016
21st September 2024, PHD House, New Delhi
The NCLT & IBC Committee, PHDCCI organized a Conference on the Insolvency & Bankruptcy Code, 2016 on September 21, 2024 at PHD House, New Delhi.
The welcome address and theme introduction were delivered by Shri GP Madaan, Chair of the NCLT & IBC Committee, PHDCCI, who highlighted the need for collaboration in addressing the sector’s challenges.
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The conference featured several distinguished speakers. Dr. U K Chaudhary, Senior Advocate and President of the NCLT Bar Association, emphasized the importance of supporting MSMEs and ensuring equitable treatment of operational creditors.
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Shri Debajyoti Ray Chaudhuri, MD & CEO of NeSL, discussed how the Insolvency and Bankruptcy Code has played a key role in reducing non-performing assets and revitalizing businesses.
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Shri Sudhaker Shukla, Whole Time Member of IBBI, stressed the importance of recent budget reforms that prioritize proactive resolutions over liquidation, particularly for MSMEs, and called for a holistic approach to ensure equitable treatment of all stakeholders.
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Shri PSN Prasad, Hon'ble Member-J (Ex.), NCLT, highlighted the importance of adhering to legal timelines for justice to be effectively served.
Shri Ashok Kumar Bhardwaj, Hon'ble Member (J), NCLT, discussed the need for thorough legal scrutiny in insolvency cases to avoid delays and unjust outcomes.
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Justice Shri M.M. Kumar (Retd.), Founder President of NCLT, underscored the value of enhanced communication among stakeholders to improve procedural efficiency.
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Mr. Abhishek Anand, Co-Chair of the NCLT & IBC Committee, PHDCCI, moderated Technical Session 1, while Mr. Karan Mehra, Co-Chair of the NCLT & IBC Committee, PHDCCI, moderated Technical Session 2. Ms. Manisha Chaudhary, Co-Chair of the NCLT & IBC Committee, PHDCCI, delivered the concluding remarks and vote of thanks.
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The conference saw a turnout of 140 delegates, including legal experts, regulators, and industry professionals, to discuss reforms within India's insolvency and bankruptcy framework.
Virtual Roundtable on "IBBI Guidelines on Committee of Creditors (CoC): Dtd. 6th August 2024"
Held on 22nd August 2024
The NCLT & IBC Committee, PHDCCI hosted a Virtual Roundtable on “IBBI Guidelines on Committee of Creditors (CoC): Dtd. 6th August 2024” on 22nd August 2024.
The roundtable featured insights from distinguished speakers, including Mr. GP Madaan, Advocate ; Chair, NCLT & IBC Committee, PHDCCI, Mr. Abhishek Anand , Advocate; Co-Chair, NCLT & IBC Committee, PHDCCI and Mr. Karan VP Mehra , Advocate; Co-Chair, NCLT & IBC Committee, PHDCCI .
Their expertise enriched the session, focusing on best practices, compliance strategies, and enhancing the effectiveness of insolvency resolution processes.
The session was highly interactive, with participants actively engaging with the speakers, asking questions, and sharing their experiences.
Overall, the roundtable was insightful and significantly contributed to the ongoing discourse in insolvency and bankruptcy, with over 40 participants in attendance.
Virtual Roundtable on NCLAT Judgement Dated 24.05.2024 in Jaypee Infratech Ltd Affirming NCLT Approval For Plan of Suraksha Realty - Held on 31st May 2024
NCLT & IBC Committee of PHDCCI organized a Virtual Roundtable on NCLAT Judgement Dated 24.05.2024 in Jaypee Infratech Ltd Affirming NCLT Approval For Plan of Suraksha Realty on 31th May 2024. It was a very fruitful discussion wherein each participant got to learn about the intricacies on the subject which, in turn, proved to be a valuable platform for knowledge exchange.
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Mr. G P Madaan, Chair, NCLT & IBC Committee, PHDCCI, in his opening remarks, highlighted the importance of understanding the security and outstanding amounts owed to the three specific authorities. He emphasized that the recent judgment had clarified several aspects and urged everyone, especially those involved in real estate matters, to thoroughly review it. He requested that all relevant parties, including the SRA and COC, be involved to facilitate a more effective resolution of insolvency cases.​​
Mr. Abhishek Anand, Co- Chair, NCLT & IBC Committee, PHDCCI mentioned that the said judgment will have a wide impact on the Real Estate resolution plans pending both before the Committee of Creditors as well as before the Ld. Adjudicating Authority wherever dues pertaining to Authorities who are governed under Section 13 and Section 13A of UPSIDA act 1976 is concerned.
Mr. Karan Mehra, Co- Chair, NCLT & IBC Committee, PHDCCI mentioned that this judgment has opened a Pandora box and is a fit case to challenge in appeal in the Hon’ble Supreme Court as this judgment is a jolt to a settled principle of law, i.e.- Wisdom of CoC shall prevail.
The Committee has decided to hold more such Virtual Discussions for the benefit of the stakeholders.
The roundtable was attended by more than 40 participants.
Virtual Roundtable on IBBI Discussion Paper Dt. 10.05.2024 on "Strengthening
the Process of Issuance of Record of Default of Information Utility - 17th May 2024
NCLT & IBC Committee of PHDCCI organized a Virtual Roundtable on IBBI Discussion Paper Dt. 10.05.2024 on "Strengthening the Process of Issuance of Record of Default of Information Utility on 17th May 2024. It was a very fruitful discussion wherein each participant got to learn about the intricacies on the subject which, in turn, proved to be a valuable platform for knowledge exchange.Mr. G P Madaan, Chair, NCLT & IBC Committee, PHDCCI, in his opening remarks lauded the initiative of IBBI in amending the Regulations in order to strengthen the process of issuance of Record of Default (RoD) by Information Utility (IU). He further stated once the proposed amended regulations are issued and implemented, the RoD may become conclusive evidence before the NCLT, and it’ll save considerable time of NCLT in admissions of applications under sections 7&9 of IBC, 2016.
Ms. Manisha Chaudhary, Co- Chair, NCLT & IBC Committee, PHDCCI mentioned that the Record of Default in its present or suggested amended form cannot be taken as conclusive proof, and its constitutional validity may be questioned. Also the IB code has to provide for specific provisions making it mandatory for the debtors and creditors to provide docs/ info to ensure correct Records of Default (RoD) so as to enable verification of claims by IPs and effective adjudication by the Hon’ble Adjudicating Authorities.
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Mr. Karan Mehra, Co- Chair, NCLT & IBC Committee, PHDCCI acknowledged the need of the time to strengthen the processes of collecting information regarding the defaults of the corporate debtor. A through back hand due diligence on part of the financial/operational creditor and the IU before uploading the Record of Default would offer conclusivity to evidence and also greatly assist the AA in adjudicating the CIRP petitions in an expeditious manner.
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Dr. Jatinder Singh, Assistant Secretary General, PHDCCI extended his heartfelt thanks to all the learned speakers and participants for their valuable contributions and engaging interactions during this enlightening session.
The Committee has decided to hold more such Virtual Discussions for the benefit of the stakeholders.
The roundtable was attended by more than 60 participants.
Virtual Roundtable Discussion on the Hon'ble Bombay High Court's Ruling: Amit Gupta Versus Insolvency & Bankruptcy Board of India & Anr. (Dated 4.04.2024) held on 25th Apr'24
NCLT & IBC Committee of PHDCCI organized a Virtual Roundtable Discussion on the Hon'ble Bombay High Court's Ruling: Amit Gupta Versus Insolvency & Bankruptcy Board of India & Anr. (Dated 4.04.2024) on 25th April 2024. It was a very fruitful discussion wherein each participant got to learn about the intricacies on the subject which, in turn, proved to be a valuable platform for knowledge exchange.
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Mr. G P Madaan, Chair, NCLT & IBC Committee, PHDCCI, in his opening remarks lauded the judgement as it has raised serious concerns with respect to amending the Liquidation Regulations by IBBI under the garb of issuance of circulars.The High Court has also observed that on the issuance of SCN by IBBI, the IPs should not be barred from taking up any fresh assignments.
​Mr. Abhishek Anand, Co- Chair, NCLT & IBC Committee, PHDCCI stated that this is a welcoming judgment for the entire community of Insolvency Professionals and, in fact, further throws light on how confusion can be created by circulars if the same are not well drafted by the regulator.
In addition, an important issue has been highlighted in the judgment with respect to suspension of AFA upon mere issuance of Show cause notice, but hopefully the same will be decided soon in some other matter as the said question has been left open.
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Mr. Karan Mehra, Co- Chair, NCLT & IBC Committee, PHDCCI mentioned that the Mumbai High Court Judgment is a welcome judicial pronouncement as it defines the powers of the Regulator by metes and bounds and lays down broad guidelines for the Regulator to promulgate Circulars in a way that they should not encroach upon the legislative jurisdiction and should at the most be clarificatory in nature. The Hon’ble High Court also took a judicial note of an impact of issuance of show cause notice on the IPs and the IBC Regime at large.
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Dr. Jatinder Singh, Assistant Secretary General, PHDCCI extended his heartfelt thanks to all the learned speakers and participants for their valuable contributions and engaging interactions during this enlightening session.
The Committee has decided to hold more such Virtual Discussions for the benefit of the stakeholders.
The roundtable was attended by more than 70 participants.
Summit on Insolvency & Bankruptcy Code, 2016
Organized by the NCLT & IBC Committee of PHDCCI
This insightful event was organized on Saturday, 3rd February 2024
The PHDCCI’s NCLT & IBC Committee successfully organized the Summit on Insolvency & Bankruptcy Code, 2016’ themed ‘Watershed Moments in India’s Insolvency Landscape through Judicial Pronouncements’ on 3rd February 2024 at PHD House, New Delhi.
The Chief Guest Dr. Sanjeev Ranjan, Hon’ble Member (T), NCLT in his address complimented PHDCCI for having organized this summit and emphasized that for an evolving code like IBC it is important that all the stakeholders meet and figure out a way to take it forward. He informed that there are challenges which keep emerging and that we need to sort it out as we come across them. He further highlighted that the entire IBC process is a market-driven process. Instead of it being run by some regulatory authority alone or some dictate being given by somewhere, it is the market and the various stakeholders which ensure that the process runs through seamlessly and therefore, these market mechanisms which are at play have to be made more efficient. He informed that there are challenges which have come about which have been resolved by various pronouncements, regulations, etc. but it is an evolving field and therefore it is important that symposium like these where everyone comes together, looks at the challenges and the possible resolutions.
The Guest of Honour for the session, Dr. U K Chaudhary, Sr. Advocate & President, NCLT Bar Association mentioned that this legislation has actually turned into an implementable legislation only because of the watershed moments. Judicial interpretation of this new legislation by Supreme Court, NCLAT and NCLT has actually turned out to be the watershed moments. He mentioned about the very first judgment given by the Supreme Court of India, literally running through the length and breadth of the entire IBC Code and that was the 1st watershed moment in the IBC Code. This judgment was Innoventive Industries Ltd. Vs. ICICI Bank. He also mentioned about the judgments of Arcelormittal India Pvt. Ltd. Vs. Satish Gupta, Swiss Ribbons Pvt. Ltd. Vs. Union Bank of India and CoC of Essar Steel Vs. Satish Kumar Gupta & Ors. Which must be read by everyone who wish to know the larger scope of the legislation. He also named various important Judgments which dealt with the process of CIRP. He mentioned about another watershed Judgment in Pioneer Urban Land & Infra & Manish Kumar Vs. Union of India dealing with first time the issues relating to the Home Buyers and Real Estate Issues.
Mr. G P Madaan, Chair, NCLT & IBC Committee, mentioned that since inception of the IBC Code, it has been observed that some negative news about the Code have been spread by the Media, because the Negative sells. Nobody realized that for 3 log years we had the pandemic, the NCLT bench strength was not adequate. We were having not even 50% of the total sanctioned bench strength. NCLT was constituted under Companies Act 2013 for the purpose of Companies Act only. It’s only after the introduction of Insolvency & Bankruptcy Code, 2016 NCLT was named as Adjudicating Authority under the Code and that was the second role given to NCLT apart from the primary role which was given under Companies Act 2013. He mentioned that despite all these we saw resolutions and recoveries. During last some months the bench strength is almost 90%. We have seen a number of cases being resolved. IBBI has recently acknowledged and released the figures that under CIRP till date Rs. 3.16 Lac Crores has been realized by the lenders and that it is the beginning. The number of applications which have been withdrawn after initiation but before commencement is 26000 having a total underlined debt of Rs. 9.3 Lac Crores and that is the victory of this legislation. Now a days when a demand notice/legal notice is issued, the very next day the defaulter is with the lender and tries to settle the issues. Our NCLT Benches have been working day and night. The gross NPAs of banks have come down below 3% and net NPAs are less than 1% now which has never been seen in past in the Indian Banking Sector. He also mentioned about the important Judicial Pronouncements i.e Rainbow, Raman Ispat, Vidarbha Industries, Jet Aiways, Jaypee Infra, Airtel etc. He also highlighted that the so called haircut should not be seen in relation to amount claimed. The haircut has a direct correlation with liquidation value. He mentioned that earlier 80% of the companies were going into liquidation and 20% for resolution. The said ratio at present is 50:50. Even in the first 2 days of February, four resolution plans have been approved by NCLT. He shared his insights into how NCLT has been working tirelessly over the years.
Citing the example of Patanjali Foods (earlier Ruchi Soya) bidding for ailing Rolt India with all cash deal of Rs 850 crores, he said that now the erstwhile insolvent companies have, after resolution, become resolution applicants.
Sometimes the regulations are not clear, interpretation issues are there or regulations are silent on certain issues. Many of the Judicial Pronouncements, particularly from NCLT & NCLAT, have led to amendments in the regulations by the IBBI.
Mr. Abhishek Anand, Co-Chair, NCLT & IBC Committee informed about the judicial evolution that started and how all issues pertaining to IBC Code, the Companies Act & Mergers & Acquisition came before one tribunal which is NCLT.
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Ms. Manisha Chaudhary, Co-Chair, NCLT & IBC Committee, mentioned that the theme of the summit has been chosen by NCLT & IBC Committee because of a specific purpose. We all have been always discussing how the problems of the IBC should be solved. With this theme we wish to highlight the positive side of this code. She mentioned about the judgements which have put forward the regime of IBC Code and also how to positively take this forward.
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Mr. Karan Mehra, Co-Chair, NCLT & IBC Committee thanked PHDCCI for constituting NCLT & IBC Committee. He informed that the committee is a platform for all the stakeholders. This committee brings all of us come together under one roof & work together to make this regime a success and grow further. He also apprised the audience about the PHDCCI NCLT & IBC website (www.ncltibcphdcci.in) which has been launched in August 2023. He requested everyone to visit this portal which shares information w.r.t the events of the committee including Past and Forthcoming. Among other features, the website has blog section where the stakeholders get the facility to publish their articles for the benefit of entire fraternity.
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The summit was partnered by Khaitan Legal Associates, UKCA and Partners LLP, Noida Holdings Pvt. Ltd., ARCK Resolution Professionals LLP, Sasttra Legal (Advocates Solicitors), VR Asset Resolution Consultants, Utkrishtha Insolvency Professionals, Cicero Law Firm, AAA Insolvency Professionals LLP and Ducturus Resolution Professionals.
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The knowledge partners of the summit were Madaan Law Offices, Law Offices of A Anand & Vishnu Mehra & Co..
Conference on Insolvency & Bankruptcy Code, 2016
23rd September 2023 : PHD House Chandigarh
NCLT & IBC Committee of PHDCCI along with Punjab State Chapter PHDCCI organized Conference on Insolvency & Bankruptcy Code, 2016 on 23rd September 2023 in PHD House, Chandigarh.
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Chandigarh Bench Members (Judicial) - Dr. PSN Prasad, Mr. Harnam Singh Thakur and Mrs. Laksmi Gurung, Member (Judicial), NCLT Mumbai Bench graced the occasion as Guests of Honour.
Dr. PSN Prasad mentioned that Insolvency or liquidation of industries is no longer a matter related to any one region but has become a national issue. Speaking on the occasion, Dr. Prasad, said that complaints related to financial matters often come to the Tribunal due to lack of knowledge of law. Lawyers should try to reach a mutual agreement by explaining the law to industrialists and bankers before filing any petition. He mentioned that the rules and the laws made in other sectors are being used correctly but due to lack of correct information about the laws made regarding economic matters, disputes are increasing.
Mr. Harnam Singh Thakur said that it has been seven years since IBC was formed. Now awareness regarding this is increasing. Though IBC, disputes between many industrial groups and banks can be resolved with mutual consent. Mr. Thakur said that at present young entrepreneurs are setting up industries without studying in the field. This is later causing liquidation. One should establish industries in a planned manner with field study.
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Mrs. Laksmi Gurung shared her views that it's important to conduct such awareness programs by PHDCCI, It creates awareness among people. Our new generation should be equipped with full information about NCLT and IBC. Programs like these eliminate problems faced by public.
G.P. Madaan highlighted the success stories of the IBC, 2016. While appreciating the Code, he said that, barring exceptions, the NPAs will not be visible in the economy. He urged all the stakeholders to support the Govt., the Regulator and the Adjudicating Authority in successful implementation of the law.
PHDCCI NCLT and IBC Committee Co-Chair Sh. Abhishek Anand, Sh. Karan Mehra, Banking and Financial Services Sub-Committee Convenor Sh. Mukul Bansal also expressed their views during Inaugural Session. During the Technical Sessions, Sh. Jalesh Kumar Grover, MD, Ducturus Resolution Professionals, Rajesh Sharma, Former Member(T) NCLT, Ratan Gopal Mishra, Associate VP, Resurgent India Ltd., Sh. Atul Sood, Advocate, Sh. Anand Chhibbar, Sr. Advocate, Sh. Pankaj Sethi, Advocate and Harish Taneja, Director, Utkrishtha Insolvency Professionals participated in the panel discussions and expressed their views about IBC-2016. Apart from industrialists, Insolvency Professionals, Company Secretaries and Advocates also participated in the conference. More than 75 persons attended the event from various parts of the nation.
Conference on Insolvency & Bankruptcy Code
19th August 2023 : PHD House New Delhi
PHDCCI organized Conference on Insolvency & Bankruptcy Code on 19th August 2023 in PHD House New Delhi. Dr. UK Chaudhary, Sr. Advocate & President, NCLT Bar Association mentioned that there have been a number of legislations in the past on sickness and revival, but all failed completely. After so many failures, and so much of pile up of NPAs; IBC is the one that has achieved success for the creditors. He emphasised on the challenges, viz. structure under IBC does not recognize operational creditors and it only recognizes financial creditors; supremacy of the COC; Section 60 (5) is the cause for most of the delays and preferential treatment to secured creditors under Section 52 and 53.
Shri LN Gupta, Member (T), National Company Law Tribunal, Delhi Bench submitted that we should organize such sessions more frequently so that we put our heads together and work together for the betterment of IBC which is still at a evolving stage. He mentioned challenges before IPs, creditors, IBBI etc. All challenges are different from the challenges what we face as the adjudicating authority. It’s a dynamic legislation which has been amended six times; we will very soon see the seventh amendment, he mentioned. He highlighted achievements of IBC as 70% of the applications have been disposed of and in the Merger and Amalgamation cases 93% of them are disposed off.
Shri PSN Prasad, Member (J), National Company Law Tribunal, Delhi Bench emphasized on not treating IBC as a recovery mechanism. He advised the participants to read the preamble of IBC carefully, which states “Timely resolution and maximization of value of assets“. The objective of a law is always in the preamble. He appealed to legal community to bring only justifiable and sustainable cases as advocates are the officers of court and should not encourage frivolous applications.
Mr. GP Madaan, Chair, NCLT & IBC Committee PHDCCI in his welcome address mentioned that IBC came 7 years back and challenges faced are many which start from the day one when from filing the application whether u/s 7, 9 or 10; whether the application is barred by limitation; principles of natural justice have to be followed which certainly takes time which is challenging. Challenges also include acceptance of the claim, constitution of COC, preparation of information memorandum, cooperation from management and members of COC, various stage of resolution plans, implementation of Resolution Plan.
Mr. Karan Mehra, Co-Chair, NCLT & IBC Committee mentioned that the objective of PHDCCI NCLT Committee is to bring reforms in the IBC Code and we need to think out of the box. He further added, we need to reach out to every stakeholder which is just not the Bench, Bar, AA, IP etc. but a stakeholder is also a student who assist in delivery of justice. Mr. Mehra also presented the Web Portal of NCLT & IBC Committee (www.ncltibcphdcci.in) of PHDCCI which got unveiled by the Honourable Technical & Judicial Members of NCLT Bench Delhi.
Mr. Abhishek Anand, Co-Chair, NCLT & IBC Committee PHDCCI in his concluding speech mentioned that we all are working for the success of the implementation of IBC. The conference has been attended by more than 100 stakeholders.
Other Distinguished Speakers Included: Ms. Manisha Chaudhary, UKCA & Partners LLP, Ms. Pooja Bahry - Insolvency Professional, Ms. Anju Agarwal - Managing Partner, ASC Insolvency Services, Mr. Bishwajit Dubey - Insolvency Professional, Ms. Deepika Bhugra Prasad – AAA Insolvency Professionals LLP, Mr. Sanjeev Ahuja - Insolvency Professional, Mr. Nilesh Sharma - Founding Partner, RRR Legal Advisors LLP, Mr. Sanjeev Sen – Sr. Advocate, Mr. Anil Kohli - Arck Resolution Professionals and Mr. Rocky Ravinder Gupta, Insolvency Professional.
More than 100 persons have attended this event.
The delegation, led by Dr. Jatinder Singh, Assistant Secretary General, included the Chair and Co-Chairs of the NCTL & IBC Committee, as well as Mr. Siddharth Singh, Deputy Secretary.
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The Chairperson expressed appreciation for the programs and commended the Chamber for its various initiatives. He also assured the delegation of the IBBI's support for their endeavours.
On May 11, 2023, a delegation from PHDCCI (PHD Chamber of Commerce and Industry) held a meeting with Mr. Ravi Mital, the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI). During the meeting, the delegation briefed him about the diverse range of initiatives undertaken by the Chamber in the NCLT (National Company Law Tribunal) and IBC (Insolvency and Bankruptcy Code) sector.
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Additionally, PHDCCI requested Mr. Mital to honor the delegation by being the chief guest at a closed-door meeting with stakeholders and a seminar focused on a subject of concern.
Meeting with Chairperson IBBI
Shri GP Madaan mentioned “Whenever there is any proposed change in the law, IBBI always follows a democratic consultation process. First of all, there is a discussion paper, and based on that, IBBI will have the final regulations”
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Shri Karan Mehra mentioned “the discussion paper from IBBI with the proposed amendments is a great initiative to ensure timely conclusion of the CIRP process with minimal intervention of the tribunals.”
NCLT & IBC Committee of PHDCCI organized Roundtable on IBBI Discussion Paper on "Measures for increasing the possibility of resolution, value of resolution plan, and enabling timely resolution” in PHD House, New Delhi on 23rd and 26th June 2023. Shri Santosh Kumar Shukla, Executive Director, IBBI was present during the session as Keynote Speaker. Members of Committee discussed in detail the Nitti Gritty of the discussion paper and their recommendations will be submitted to IBBI in due course.
PHDCCI NCLT & IBC Committee Chair - Shri GP Madaan & Co-Chair Shri Karan Mehra were present during the session.
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Shri Shukla mentioned “more than 100 regulations coming in a short time frame is not a small thing. This paper is trying to touch upon the timelines, as timely resolutions are the essence of the IBC Code”
NCLT & IBC Committee of PHDCCI organized Roundtable on IBBI Discussion Paper
23rd & 26th June 2023 in PHD House New Delhi
"Measures for increasing the possibility of resolution, value of resolution plan, and enabling timely resolution”
Virtual Interaction on “NCLAT Judgement in the matter of Earth Infrastructures Ltd.”
setting aside the approved Resolution Plans; 3rd April 2023
NCLT & IBC Committee PHDCCI organized Virtual Interaction on Recent NCLAT Judgement in the matter of Earth Infrastructures Ltd. setting aside the approved Resolution Plans on virtual platform on 3rd April 2023. More than 100 professionals participated in the interaction. PHDCCI ws represented by Mr. GP Madaan, Chair-NCLT & IBC Committee PHDCCI and Co-Chairs - Mr. Abhishek Anand and Mr. Karan Mehra.
Following facts of the case have been deliberated in detail:
The land is usually owned by a separate legal entity itself and the allotment is taken by another legal entity and in most of the cases CIRP is initiated of not the land owning company but the company which has the developing rights.
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Therefore, all IPs, all allotted and all stakeholders are going through a lot of questions whether they can take that land into the CIRP of the company, having development rights.
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Additionally, what is the evolved role of the RP in Insolvency & Bankruptcy Code. Whether RP should include this land or should give a give disclaimer or include the rights which are the development rights of the CD, how this will have to be treated in information memorandum and whether consolidation of insolvency proceedings of the land owning company and the company having the development rights, should be the pre-requisite for the initiation of CIRP of a company who has the development rights. In the present case Greater Noida Authority is not a creditor of the company which is undergoing CIRP.
The session has been very interactive wherein the nuances of the judgement on Earth Infrastructure was discussed in details. This has helped the insolvency professionals understanding the interpretation of judgement in a deeper details through a fruitful deliberation on the document.
NCLT & IBC Committee PHDCCI organised a Roundtable on NCLT Judgment
in the Case of Jaypee Infratech Ltd. at PHD House, New Delhi; 21st March 2023
NCLT & IBC Committee PHDCCI organised a Roundtable on Recent NCLT Judgment in the Case of Jaypee Infratech Ltd. on 21st March 2023 in PHD House, New Delhi. PHDCCI was represented by Mr. GP Madaan, Chair, NCLT & IBC Committee along with Co-Chairs Mr. Abhishek Anand and Mr. Karan Mehra. Experts from the legal fraternity had a detailed discussion on the nuances of the judgment. The experts participated and deliberated on ramifications of the judgment.
Suraksha Realty, a ray of hope for more than 20,000 dejected homebuyers awaiting for their homes for over a decade. Recently the Hon'ble Adjudicating Authority gave nod to the Resolution Plan submitted by a consortium led by Suraksha Realty Limited to takeover Jaypee Infratech. Suraksha Group proposes to complete all the projects and handover the homes to allottees while satisfying the claims of all the financial creditors.
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The role of AA, whilst considering the resolution plan approval, is to see that the plan is in compliances of laws as per Section 30(2)(b) of the Code which simultaneously provides that a dissenting financial Creditor is required to be paid minimum liquidation value.
The Tribunal/Appellate Tribunal are striving to protect the interest of all the stakeholders for instance, SRAs, Financial Creditors, Operational Creditors, home buyers, Statutory Authorities, Employees, etc. However, it’s still a work in progress and hopefully, time will come when there will be a perfectly balanced eco system for all the stakeholders under this fairly a new IBC regime
Suraksha Realty Plan seems to be feasible and viable for more than 20,000 Home Buyers. The Home buyers who were waiting for the decisions in their favour, may see this is a Sunshine opportunity for them.
Conference on Impediments in Approval & Implementation of a Resolution Plan Under IBC, 2016; 25 February 2023: Chandigarh
NCLT & IBC Committee and Chandigarh Chapter of PHDCCI successfully organized Conference on “Impediments in Approval and Implementation of a Resolution Plan under IBC, 2016” in PHD House, Chandigarh. Hon’ble Harnam Singh Thakur, Member (Judicial) NCLT, Chandigarh Bench & Hon’ble Mr. Subrata Kumar Dash, Member (Technical) NCLT, Chandigarh Bench attended the session as Guest of Honour.
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Mr. G P Madaan, Chair, NCLT & IBC Committee and Co-Chairs, Mr. Abhishek Anand, and Mr. Karan Mehra, Mr. Mukul Bansal, Banking and Financial Services Sub Committee, Punjab State Chapter, PHDCCI shared their perspective with the attendees.
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The conference also included Panel Discussions where deliberation took place w.r.t recent concerning judgements which have given preference to dues of workmen and tax authorities over financial creditors' dues.
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Mr Rajesh Sharma, Former Member, NCLT, Chaired the Panel Discussion on “Tax & Other Govt. Authorities”.
The panel discussions included following panelists:
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Mr. Anand Chhibbar, Senior Advocate, Chhibbar & Co.
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Mr. J K Grover, MD, Ducturus Resolution Professionals
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Mr Atul V. Sood, Advocate
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Mr Ramanjit Singh, Partner-Dispute Resolution, Legacy Law Offices
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Mr. Harish Taneja, Director, Utkrishtha Insolvency Professionals
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Mr. Gurvinder Singh Sarin, PCS & Insolvency Professional
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Mr. GP Madaan, Advocate & Insolvency Professional, Madaan Law Offices
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More than 80 persons attended the conference.
NCLT & IBC Committee PHDCCI organized a Virtual Interaction on a Consultation Paper published by Securities and Exchange Board of India (SEBI). The Consultation Paper was on “Framework for protection of interest of public equity shareholders in case of listed companies undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC)”. ; 23rd November, 2022
The purpose of this interactive session was to dwell deeper into the various modalities and the significant impact of this paper and send representation to SEBI.
Many IBC professionals shared their insights on the impact and interpretations of clauses of this paper. The suggestions have been compiled and submitted to the SEBI.
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Mr. G P Madaan, Chair, NCLT & IBC Committee moderated the session. Concluding remarks & Vote of Thanks were delivered by Mr. Abhishek Anand, Co-Chair, NCLT & IBC Committee and Mr. Karan Mehra, Co-Chair, NCLT & IBC Committee.
Conference on Corporate Restructuring – Role of NCLT and NCLAT; 24th September 2022
The NCLT and IBC Committee, PHDCCI organized a Conference on Corporate Restructuring - Role of NCLT and NCLAT on 24th September 2022 at PHD House, New Delhi.
The Conference touch based on three aspects viz. - Merger and Acquisition; Corporate Insolvency Resolution Process and Section 230 of Companies Act, 2013 - Scheme of Compromise and Arrangement under Liquidation.
Dr. Ashok Kumar Mishra, Member (Technical), NCLAT deliberated on the operational and
financial aspects of Corporate Restructuring.
Hon’ble Chief Justice (Retd.) Ramalingam Sudhakar, President, NCLT stated that in the field of Mergers and Acquisitions NCLT has achieved good results and presented statistics as of 31st August 2022 - the percentage of disposal of cases by NCLT is 92.1% . He further said that in the field of mergers and acquisitions all stakeholders including the legal fraternity has done commendable work.
Dr. PSN Prasad, Member (Judicial), NCLT pointed out that "re-alignment" along with "restructuring" is important. He said Law is the true representative of socio-economic conditions of the country, and the traditional concept of law has been changed totally under the IBC. The IBC is more flexible and focused towards addressing socio-economic-politicotechnological issues.
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Dr. U K Chaudhary, Senior Advocate & President, NCLT Bar Association presented various issues relating to corporate restructuring and scheme of compromise and arrangement under Section 230. He said that while the Company Law tribunal is doing wonders, the IBC needs government's backing.
Mr. Pradeep Multani, President, PHDCCI in this presidential address said that the Insolvency and Bankruptcy Code 2016 is a breakthrough reform to resolve distressed debt in India and put forth suggestions viz., Mediation should be introduced for out of court settlement of disputes in a speedy and cost-effective manner; Introduction of a single window for all company law related matters; Increasing the number of benches and strengths of members at all benches; Creating world class infrastructure for all the benches and Discouraging malicious and frivolous applications.
Ms. Pooja Mahajan, Managing Partner, Chandiok and Mahajan highlighted the fact that with the coming up of IBC, the NCLT and NCLAT benches have been burdened and the Company Law matters end up taking a lot of time – a solution to this would be having a different bench and designated dates for hearing Company Law matters, along with having draft orders ready.
Ms. Shweta Bharti, Senior Partner at Hammurabi & Solomon Partners mentioned that bringing certainty into the procedure will go a long way in easing the process of mergers and amalgamations.
Mr. Sunil Gupta, Partner, Resurgent India Limited pointed out that the NCLT is burdened with new applications due to which time management is always a challenge. Meeting the prescribed time frames of the Code is challenging even for the Resolution Professionals. Workmen’s interest should always be secured, he added.
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Mr. GP Madaan, Chair- NCLT and IBC Committee moderated the technical sessions.
Mr. Abhishek Anand, Co-Chair, NCLT & IBC Committee presented the summation remark and proposed vote of thanks.
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Dr. Jatinder Singh, ASG, PHDCCI moderated the inaugural session.
The Conference was attended by delegate from industry and legal fraternity. The conference was supported by AAA Insolvency Professionals LLP; Chandiok & Mahajan; Hammurabi & Solomon Partners; RRG & Associates; ARCK Resolution Professionals LLP; Resurgent India Limited; UKCA and Partners; AMC Law Firm and Ducturus Resolution Professionals Pvt. Ltd. Law offices of A. Anand and Madaan Law Offices were the Conference Knowledge Partners.