VListen
By VListen
VListen is an initiative from VirtuaLaw to summarise complex concepts of economic legislations like Insolvency and Bankruptcy Code, 2016, Companies Act, 2013, Competition Act, 2002 and other corporate laws in India.
VListen through its network of speakers from various fields provides insights on critical aspects.
VListenAug 16, 2020
S02E15 - Amendments to CIRP Regulations | February 2024
In this episode, Sarthika summarises the amendments made to CIRP Regulations by IBBI.
S02E14 - Directors' Liability prevails during CIRP | Regardless of IBC Moratorium
In this insightful episode of VListen, we unravel the intricacies of directorial liability amidst the protective shield of moratorium provided under the Insolvency and Bankruptcy Code (IBC). The Hon'ble Supreme Court's rulings in pivotal cases shed light on the nuanced legal landscape, challenging the common perception that directors are immune during a company's Corporate Insolvency Resolution Process (CIRP).
Join us as we delve into key judgments, including the landmark P. Mohanraj vs. Shah Bros. Ispat (P) Ltd., where the Supreme Court clarified the scope of the moratorium and its impact on individual liability. We explore how these legal principles were reiterated in cases like Anjali Rathi and others vs. Today Homes and Infrastructure Pvt. Ltd. and Others, and most recently, Ansal Crown Heights Flat Buyers Association v/s. M/s. Ansal Crown Infrabuild Pvt. Ltd. & Ors.
The episode also unravels a compelling case where homebuyers sought justice before the National Consumer Disputes Redressal Commission (NCDRC), highlighting the practical implications of the Supreme Court's rulings.
Tune in to gain a comprehensive understanding of how the Supreme Court navigates directorial liability beyond the IBC moratorium, providing clarity on the legal dynamics within insolvency proceedings.
For legal enthusiasts, professionals, and anyone intrigued by the intersection of law and business, this episode is a must-listen.
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If VListen... We Learn!
S02E13 - Remedies against Third Parties u/s. 66 of IBC | Analysis of the current legal position
In this episode, Katyayni touches upon an important aspect of avoidance transactions covering the Supreme Court's take on availing remedies against third parties under Section 66 of the Insolvency and Bankruptcy Code, 2016.
S02E12 - CIRP Application against Co-Borrower | Position of Law on Maintainability
Welcome to another enlightening episode of our podcast!
In this episode CS Ankita Pugalia delves into the position of law on maintainability of CIRP Applications against Co-Borrowers.
S02E11 - Treatment of PF dues in a Resolution Plan | Analysis of NCLAT order in Jet Airways
In this episode, we discuss the NCLAT order in Jet Airways wherein the treatment of PF dues in a resolution plan is examined.
S02E10 - Slump Sale cannot be converted into Sale as a Going Concern during Liquidation
In this episode, Sravya provides case brief of a NCLT order disallowing conversion of slump sale into sale as a going concern.
S02E9 - Amendments to CIRP Regulations | Effective September 16, 2022
IBC is dynamic legislation with amendments made to the Act and the Regulations thereof at regular intervals. The IBBI had, on September 16, 2022, made vital amendments to the CIRP Regulations. In this video, Mr. Bendi Raviteja, Partner at VIRA Legal LLP discusses the said amendments.
S02E08 - Future Retail into CIRP | The Unending Saga of Amazon & Reliance over Future Group
In this episode, Aditya explains the unending saga of Amazon & Reliance over acquiring future group and the recent ruling of NCLT admitting Future Retail in to CIRP.
S02E07 - Compulsorily Convertible Debentures - Analysis of Claims | Part-I
In this episode Aditya analyses the complexities in claims of Compulsorily Debenture Holders.
S02E06 - Commercial Wisdom of CoC under Section 12A of IBC | Vallal RCK vs. Siva Industries and Holdings Ltd. & Ors.
In this episode, Prakul presents the case brief of the recent Supreme Court ruling in the matter of Siva Industries and Holdings Limited upholding the commercial wisdom of CoC in considering withdrawal of CIRP under Section 12 of Insolvency and Bankruptcy Code, 2016.
S02E05 - Approval of CCI | For Combinations proposed in Resolution Plans
In this episode, we talk about the requirement of obtaining approval from CCI for combinations proposed under resolution plans and more importantly as to the timing of obtaining such approval.
S02E04 - Status of Insufficiently Stamped Documents | Admission of Section 7 Application
In this episode of VListen, Mr Shivam Singhal explains the status of insufficiently stamped documents for admission of Section 7 Application under IBC especially where the existence of debt and default can be proven without relying on such documents.
S02E03 - Non-Registration of Charge | Status of such creditors under IBC
In this brand new episode, Mr Prakul quickly analyses the current position of law in treating the creditors whose security interest has not been registered as charge with the RoC.
S02E02 - Interest portion of Operational Debt | A tale of shadow interpretations
In this episode, Mr Bendi Raviteja touches upon the contentious issue of interest portion of operational debt highlighting the contradictory rulings of the NCLTs in India.
S02E01 - Appropriate Jurisdiction | Personal Guarantors to Corporate Debtor
It is still a matter of debate as to whether NCLT or DRT exercises jurisdiction for initiation of Insolvency Resolution Process or Bankruptcy Process against the Personal Guarantor to the Corporate Debtor when there is no pending CIRP or Liquidation Process against such Corporate Debtor.
In this episode Mr Kunwarpreet Singh, Partner at Prakul & Kunwarpreet LLP (P&K) explains the current position of law in this regard!
Episode 53 - Violation of S. 186 of Companies Act, 2013 leads to dismissal of CIRP Application
The Hon'ble NCLT, Principal Bench in the matter of UKG Steel Private Limited Vs. M/s. Erotic Buildcon Private Limited held that loan advanced by Financial Creditor in violation of Section 186 of Companies Act, 2013 leads to a debt which cannot be legally enforceable and thereby dismissed the CIRP Application filed under Section 7 of IBC, 2016.
Mr Yashraj Singh summarised the order and its rationale and leaves us with a food for thought as to whether this order is a wakeup call for companies who are advancing loans by violating section 186 of Companies Act 2013.
Episode 52 - Invocation of Section 66 of IBC for Contravention of Moratorium
In this episode, Mr Raymond Albyness discusses an interesting ruling by NCLT, Chennai wherein the Hon'ble NCLT invoked its powers under Section 66 of the Insolvency and Bankruptcy Code, 2016 for contravention of moratorium.
Episode 51 - Ringfencing Successor Liability : Protection offered to distressed acquisitions under India's Insolvency Code
Mr Divyansh Dev delved into the ingredients of Section 32A of the Insolvency and Bankruptcy Code, 2016 which provides for immunity from any criminal prosecution against the Corporate Debtor and protection to the properties of the Corporate Debtor for the offences committed before the Insolvency Commencement Date.
Keep listening to VListen!
If VListen... We Learn!
Episode 50 - Indian Variant of Pre-Packs : A Focused Discussion with Ms. Shreya Prakash
The Indian Variant of Pre-Packs is designed specifically for MSMEs and there are certain key areas which need focused discussion. In our special episode we had the privilege of hosting Ms. Shreya Prakash who shared her views on the key issues highlighted by VL team.
Keep Listening to VListen.
If VListen... We Learn!
Episode 49 - Personal Guarantors to Corporate Debtor
The issue on whether limiting the application of provisions of Part-III to Personal Guarantors to Corporate Debtor is valid, has come to a conclusion with the recent order of the Hon'ble Supreme Court in Lalit Kumar Jain vs. UoI & Ors.
Listen to our Podcast for the case study on Lalit Kumar Jain vs. UoI & Ors.
Episode 48 - Feasibility and Viability of Resolution Plan
Does the proposal of the Resolution Applicant to change the business of the Corporate Debtor fail the feasibility and viability test under the Code? What exactly is "feasibility and viability"?
To know more on this, listen to this episode by Aditya.
Episode 47 - Treatment of Provident Fund Dues under IBC, 2016
In this Episode, Mr Vineeth attempts to address an important issue as to whether PF dues are considered as Statutory Dues i.e. Operational Debt or as third-party assets which have super priority charge over the estate of the Corporate Debtor?
Episode 46 - Treatment of Dissenting Financial Creditors
In this episode, we will take you through a significant ruling by the Hon'ble Supreme Court clarifying the issue as to whether minimum payment payable to Dissenting Financial Creditors shall be in cash or monetary terms or in any other manner apart from cash?
Episode 45 - Is Priority Rights not a Priority?
In a recent ruling of NCLAT in the matter of Indian Renewable Energy Development Agency Ltd. Vs. Bhuvesh Maheshwari and Ors., it was observed that in the event the Secured Creditor holding priority charge elects to relinquish its security interest then the priority status of such secured creditor is lost and shall rank equally with other Secured Creditors. The Podcast attempts to capture the existing position and the need for protection of priority rights inter-se Secured Creditors.
Episode 44 - Contours of inherent powers vested upon High Court under S.482 Cr.P.C vis-à-vis IBC
In this podcast, Mr Bendi Raviteja will take you through the facts of the case and the rationale behind the ruling of SC.
Episode 43 - Entries in Balance Sheet tantamount to Acknowledgment of Debt
Episode 42 - Beneficial Liquidation - Gujarat Urja Vikas Nigam Ltd vs. Yes Bank Limited
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Episode 41 - Analysing Sectors of Indian Economy under Covid-19 Environment - An Indication for likely spike in cases under IBC
In this week's podcast, CA Vibhor Gupta analyses the performance of various sectors in India like that of Aviation, Tourism, Real Estate etc. under COVID-19 environment.
Episode 40 - Arcelor Mittal India Pvt. Ltd. vs. Satish Kumar Gupta - SC Landmark Ruling on Section 29A of IBC
The Hon'ble Supreme Court in the matter of Arcelor Mittal India Pvt. Ltd. vs. Satish Kumar Gupta, pronounced a landmark ruling on the interpretation of Section 29A of the Insolvency and Bankruptcy Code, 2016. In this podcast, Mr Ojas Pimparkar discusses in detail the facts of the case and the rationale behind the Supreme Court's Ruling.
Episode 39 - Interplay of IBC and Limitation Act - Challenges and Contentious Issues
In this episode, Mr Vineeth Reddy deliberates on the challenges in the interplay between IBC and Limitation Act.
Episode 38 - Supreme Court's Verdict on Payment of AGR Dues and Sale of Spectrum by Insolvent Telcos
In this podcast we discuss the Supreme Court's Verdict on the payment of AGR dues by Indian Telcos and whether Spectrum can be subject to proceedings under the Insolvency and Bankruptcy Code, 2016 ("IBC")
Episode 37 - UVARC's resolution plan for AIRCEL- Salient Features
In this podcast, CA Aditya Gupta discusses the salient features of the resolution plan submitted by UVARC for AIRCEL, which was duly approved by the NCLT.
Episode 36 - Does Classification of Account as NPA necessarily mean default under IBC?
Where a Bank classifies an account as NPA, it need not mean default under IBC is what CA Aditya Gupta argues and CS Prakul Thadi disagrees with him. Listen to the podcast to understand their respective arguments.
Episode 35 - Attachment of properties become void under Section 32A of IBC
In this podcast, Mr Araventhan takes you through the order passed by NCLT, Kolkata Bench, in the matter of Anil Goel vs. Deputy Director, Directorate of Enforcement, Delhi wherein it was observed that the attachment and confiscation of properties of a CD undergoing CIRP or liquidation become void under section 32-A of the Code.
Episode 34 - Babulal Vardharji Gurjar vs. Veer Gurjar Aluminium Industries - Supreme Court on the Applicability of Limitation Act to IBC
In Babulal Vardharji Gurjar vs. Veer Gurjar Aluminium Industries, both NCLT and NCLAT had admitted CIRP application even when the date of initiation of CIRP Application is more than 3 years from the date of default. The real fight is between Article 137 and Article 62 of the Limitation Act, 1963 and whether the decision of NCLT and NCLAT to admit the application upon invocation of Article 62 of the Limitation Act, 1963 is valid?
The matter landed before the Supreme Court and in this podcast Mr Vineeth Vakiti explained the decision of the Supreme Court and the rationale thereof.
If VListen... We Learn!
Episode 33 - SBI vs. Anil Dhirajlal Ambani - Insolvency Resolution Process against Personal Guarantor
In this Podcast, CA Aditya Gupta gives a quick overview of the order passed by NCLT, Mumbai in the matter of SBI vs. Anil Dhirajlal Ambani pursuant to its powers under the IBC and I & B (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors) Rules, 2019.
Episode 32 - RBI - Resolution Framework for COVID-19-related Stress
In this Podcast, CA Aditya Gupta explains the one-time restructuring opportunity provided by RBI through Resolution Framework for COVID-19-related stress, release by RBI on August 6, 2020.
Episode 31 - IBBI amends Liquidation Process and Voluntary Liquidation Process Regulations on August 5, 2020
In this podcast we update our listeners on the amendments brought forward by IBBI to the IBBI (Liquidation Process) Regulations, 2016 and IBBI (Voluntary Liquidation Process) Regulations, 2017.
Episode 30 - IBBI amends the Insolvency Resolution Process Regulations on August 7, 2020
The IBBI amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. We believe that these amendments will help in uniformity in the practices adopted by Insolvency Professionals for selection of and voting by Authorised Representatives and voting on resolution plans by CoC.
Listen to our Podcast to know the amendments.
Episode 29 - IBBI is empowered to levy fee as a percentage of annual remuneration drawn as an IP: Madras HC
The power of the Insolvency and Bankruptcy Board (the "IBBI") to levy fee of 0.25% of the professional fee earned for services rendered as an IP in the preceding financial year and also 0.25% of the turnover of an IPE in the preceding financial year and the regulations thereof were challenged before the Hon'ble High Court of Judicature at Madras.
In this case we will quickly discuss how the Hon'ble High Court addressed this case.
Episode 28 - State Bank of India vs. Ushdev International Ltd - An Interesting Debate on Commercial Wisdom of the CoC
In this podcast we discuss an interesting case where the Adjudicating Authority made critical comments on the so-called Commercial Wisdom of the Committee of Creditors. It emphasised that the CoC has not at all applied its mind and that there was no element of wisdom displayed, leave alone the 'commercial wisdom'. Having said so it rejected the decision of the CoC to liquidate the Corporate Debtor and approved the resolution plan which was originally rejected by the CoC. Am not sure if it surprised you, but it did surprise me to a large extent. But, how in the world can this happen? Listen to our Podcast to know that!
Episode 27 - Raninga Ispat Private Limited (RIPL) | CIRP | Case Study | Insolvency & Bankruptcy Code, 2016 (IBC)
Episode 26 - Albanna Engineering (India) Pvt. Ltd. | Group Insolvency | Case Study | Insolvency & Bankruptcy Code, 2016
Albanna Engineering is a critical case on Group Insolvency where the Parent Company is incorporated in Dubai.
Episode 25 - Liquidator of Surana Power Ltd. Vs. BHEL - Lien vs. Hypothecation
In this podcast we will brief you on the NCLAT order in the matter of liquidation of Surana Power Ltd., the Corporate Debtor.
The Adjudicating Authority had admitted application filed by operational creditor under Section 9 of the Code for initiation of CIRP against Surana Power Ltd. With non-receipt of any resolution plan, the corporate debtor was ordered to be liquidated.
One of the operational creditors Bharath Heavy Electricals Ltd. (BHEL) had succeeded in an arbitration proceeding against the corporate debtor. The Arbitral Award declared BHEL as an unpaid seller and accordingly granted lien over the equipment and goods lying at the site of the Corporate Debtor.
Pursuant to S. 52 of the Code, the Respondent i.e. BHEL informed the liquidator about its willingness to realise the security interest in the Asset of the Corporate Debtor.
However, the liquidator filed an application before the Adjudicating Authority seeking directions against BHEL to permit the liquidator to cause sale of assets of the corporate debtor under Regulation 32 of the IBBI (Liquidation Process) Regulations, 2016.
Strange right? Are we missing something? Yes.
Let me take you back to 2010.
On September 24, 2010, the assets for which BHEL had been granted lien, were already hypothecated to 10 Secured Creditors. Unlike BHEL, these creditors constituting 73.76% have relinquished their Security Interest into the liquidation estate of the Corporate Debtor.
The liquidator argued that the charge of hypothecation is paripassu in nature to that of lien granted in favour of BHEL and hence, the liquidator filed application before the Adjudicating Authority for liberty to sell those assets so as to distribute it among all the Secured Creditors of the Corporate Debtor.
The Adjudicating Authority, having established the differences between lien and pledge, observed that
"Whenever any lien is created, the person having right of lien has a right to enforce the same against the asset in preference to charge of hypothecation."
Accordingly, the Adjudicating Authority dismissed the application filed by liquidator and considered that BHEL is a secured creditor entitled to proceed under S.52 of the Code to realise its security interest.
Aggrieved by this order of the Adjudicating Authority, the current appeal was preferred before the NCLAT.
The liquidator argued that ten out of eleven Secured Creditors, representing together 73.76% of the total secured assets have relinquished their Security Interest into the liquidation estate and only because of the Respondent, i.e. BHEL, the Liquidator is unable to proceed any further with the sale of assets.
In this context, the NCLAT invoked S.13(9) of the SARFAESI Act, 2002 and observed that any steps about the realization of assets by the Secured Creditors requires confirmation from the Creditors having at least 60% of the value of total debt. However, since in the present case, secured creditors having 73.76% of the value of total debt, i.e. more than the required 60% as per SARFAESI, are unwilling to exercise security interest, the same decision shall also be binding on BHEL.
The NCLAT further observed that BHEL does not hold a superior charge and hence, it would be prejudicial to stall the liquidation process at the instance of such creditor having only 26.24% share in the secured assets which would also be detrimental to the interest of the remaining ten Secured Creditors.
With this rationale, the NCLAT allowed the appeal and had set-aside the order passed by the Adjudicating Authority and directed the Appellant/Liquidator to complete the Liquidation Process in the light of this decision.
Episode 24 - Immunity from Criminal Prosecution - Section 32A of IBC
In this podcast Mr Ali discussed on the Immunity provided to corporate debtors from criminal prosecution after approval of resolution plan.
Episode 23 - Judicial Intervention and IBC
In this podcast we discuss as to how the judicial intervention of NCLT, NCLAT and Supreme Court helped establish the objective of the Insolvency and Bankruptcy Code, 2016.
Episode 22 - Cardinal Principles of Corporate Insolvency Law
In this week's podcast we quickly summarise the five cardinal principles of Corporate Insolvency Law.
Episode 21 - Ex-Employee of Financial Creditor cannot act as IRP: NCLAT in SBI vs. Metenere Ltd
A quick summary of the decision taken by the NCLAT in the matter of SBI vs. Metenere Ltd .
Episode 20 - Overview on Pre-Packs by CA Archit Gupta
With the suspension of IBC due to the COVID-19 pandemic, introduction of Pre-Packaged insolvency mechanism in India seems to be inevitable. In this week's podcast we give a quick overview on the pre-packs.
Speaker:
CA Archit Gupta, is a chartered accountant, having experience of more than 3 years in various fields of the profession including forensic audit, valuation, indirect taxation, statutory audit, etc. He is DISA qualified and holds a certificate on forensic audit and fraud prevention issued by ICAI. He has also cleared the exam for registered valuer for asset class of securities and financial assets, held by IBBI and will soon be a registered valuer.
Episode 19 - So Close Yet So Far - A Comparison of Schemes with Resolution Plan and Liquidation as Going Concern
Schemes of Compromise and Arrangements, Corporate Insolvency Resolution Process and Liquidation as Going Concern are three different concepts having similar output, which is saving the distressed entity.
Through this podcast we discuss the differences between the three.
Speaker:
Mr. Aditya Guptais a chartered accountant and electronic engineer. He is also the member of IISLA (Indian Institute of Surveyor & Loss Assessor). Currently, he is pursuing Graduate Insolvency Programme to become and Insolvency Professional.