CLOSING OF BUSINESS IN INDIA DEVELOPMENTS IN LEGAL & ADMINISTRATIVE FRAMEWORK

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "CLOSING OF BUSINESS IN INDIA DEVELOPMENTS IN LEGAL & ADMINISTRATIVE FRAMEWORK"

Transcription

1 CLOSING OF BUSINESS IN INDIA DEVELOPMENTS IN LEGAL & ADMINISTRATIVE FRAMEWORK 1

2 LEGAL FRAMEWORK Present conceptual and procedural framework Laid out by 3 major legislations Companies Act, 1956 Sick Industrial Companies (Special Provisions) Act 1985, (SICA) Securitization and Reconstruction of Financial Assets and Enforcement of of Security Interest Act 2002 (SARFAESI) Several other special provisions Implementation and supervision by 4 major agencies - High Courts Company Law Board (CLB) Board for Industrial and Financial Reconstruction (BIFR) Debt Recovery Tribunals (DRTs) 2

3 CORPORATE RESCUE PROCESSES UNDER VARIOUS LAWS 3

4 COMPANIES ACT,1956 FORMAL CORPORATE RESCUE PROCESS Available under the Companies Act By making arrangements with creditors and members and reducing capital, if necessary Application before Court Elaborate Court procedures apply Court has discretion to sanction such arrangement or to refuse. INFORMAL RESCUE PROCESS Direct negotiations, voluntary arrangements, standstill agreements etc. Ineffective if threat of litigation from different creditors brings pressure on negotiations 4

5 SICK INDUSTRIAL COMPANIES ACT (SICA) Basically and predominantly remedial and ameliorative Only industrial companies covered Meaning of sick industrial company (SIC) Complete erosion of net worth Board required to make reference to the BIFR BIFR empowered for measures for revival and rehabilitation of potentially viable SICs or recommend liquidation of non-viable SICs to Court Practical difficulties faced by lenders Companies not covered by SICA may resort to provisions of Companies Act for revival Misuse of SICA in large scale by unscrupulous promoters 5

6 SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT 2002 (SARFAESI) Provides enforcement of security interests (NPAs) in movable and immovable properties without intervention of Court A secured creditor may issue notice to borrower to discharge (NPA) dues within 60 days On failure of borrower, secured creditor may enforce possession of secured assets take over management by appointing a manager Consent of 75% secured creditors mandatory in case of co-financed assets Aggrieved person may file an appeal before DRT and thereafter before DRAT However, right to appeal only after depositing 75% of claim Statutory protection granted to secured creditors against legal actions Jurisdiction of civil courts ousted In effect, only banks and public financial institutions notified as financial institutions by govt. leaving aside private financial institutions 6

7 CORPORATE DEBT RESTRUCTURING-RBI Under a frame work laid down by RBI who is also the banking regulator For banks and Financial Institutions registered with RBI Requires consent of 75% of creditors in value and 60% in number Powers with regard to asset classification; provisioning for first restructuring, norms relating to turn around period, minimum sacrifice and funds infusion by promoters, banks, Financial Institutions OTS included as a part of CDR mechanism to make exit option flexible Disclosures in balance sheet 7

8 SPECIAL LAWS AND ENFORCEMENT OF SECURITY 8

9 STATE FINANCIAL CORPORATION ACT 1951(SFCA) SFC can apply to Court for order of sale of secured property, enforcement of any surety, transfer of management and for injunctive reliefs Summary mode of trial and is not in the nature of suit proceedings Court cannot confer reliefs to co-lenders and separate recovery suits by them required Areas of overlap with winding up proceedings. Controversial as it denies opportunity for corporate rescue/turnaround 9

10 RECOVERY OF DEBT DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT 1993 (RDDBFI) Provides swift process of appraisal, validation and recovery of claims of Financial Institutions and Banks Recovery granted primarily via liquidation of assets Overrides other regulations in jurisdiction, preference and priority of claims 10

11 WINDING UP OF COMPANIES 11

12 MODES OF WINDING UP Three ways - Winding up by Court Voluntary Winding Up Members Voluntary Winding Up Creditors Voluntary Winding Up Winding Up subject to Supervision of Court 12

13 OVERRIDING EFFECTS OF WINDING -UP PROVISIONS On an order of winding-up by the Court, the administration and the affairs of the company are entrusted to the Official Liquidator, who is a Central Govt. functionary placed at the disposal of the Court (In voluntary winding up the liquidator is appointed by members or creditors) A winding-up order stays all actions against the company indefinitely Once the Court/ Tribunal takes over assets of the company under its control, or has passed an order for winding up, proceedings may be started or continued against the company only with the permission of the winding up court. The liquidation of the company and distribution of proceeds to the creditors is carried out under the directions and supervision of the Court 13

14 DIFFICULTIES IN WINDING UP Time taken too long (average 10years) Recovery is low (12-13%) Costly 14

15 REFORM SCENARIO 15

16 THE COMPANIES (SECOND AMENDMENT) ACT, 2002 Provides for setting up National Company Law Tribunal (NCLT) & Appellate Tribunal as a single window to deal with corporate rescue, restructuring and winding up. A composite law to deal with reorganization & liquidation NCLT will have: Power to consider revival and rehabilitation Jurisdiction & power relating to winding up of companies Jurisdiction & power exercised by Company Law Board Seeks to improve standards by specifying specialized qualifications for appointment of members of NCLT and a transparent process for their selection and appointment Commencement of Restructuring Proceedings Easy, convenient, inexpensive & quick access with safeguards against misuse by defaulting and dishonest debtors as experienced under SICA Board of SICs to make reference to NCLT and submit scheme for revival Inquiry by NCLT and declaration of sickness 16

17 THE COMPANIES (SECOND AMENDMENT) ACT, 2002 NCLT to sanction scheme for revival. In absence of consent to scheme, NCLT may order for winding up or take other appropriate measures Once sanctioned, the scheme becomes binding on all by operation of law A scheme may be modified in Implementation process An aggrieved person may appeal before NCLAT and then to Supreme Court NCLT empowered to recommend winding up of SIC where it concludes that the net worth cannot be turned positive within reasonable time and it is just and equitable No suspension of legal proceedings and Contracts unlike the provision under SICA Misfeasance proceedings NCLT empowered to fix liability Formation of Rehabilitation and Revival Fund 17

18 Challenge to NCLT The proposed framework could not be implemented due to a legal challenges Issues at challenge relate to the changes in jurisdiction and powers of the High Courts with regard to Company matters Special Leave Petition before the Supreme Court Refer to Constitution Bench Matter heard, reserved for orders 18

19 Rehabilitation & Revival Fund A fund to be formed for the purpose of rehabilitation or revival or protection of assets of a sick industrial company. Fund to be found by levying a cess of not less than.005% and not more than.1% on the value of annual turnover of every company. Fund shall be applied by the tribunal for the purpose of making interim payment of workman's dues Protection of assets of sick industrial company Revival and rehabilitation of sick industrial company 19

20 Private Liquidators Liquidators can be appointed; a panel From professionals firms of Chartered Accountant, Advocates, Company Secretaries, Cost & works Accountants A body corporate of such professionals as may be approved by the Central Government A whole time or part time officers appointed by the Central Government Panel of Professionals shall be prepared by the Central Government for the Tribunal for appointment as liquidators 20

21 THE COMPANIES (SECOND AMENDMENT) ACT, 2002 A Critique Objectives are well founded to provide an orderly exit mechanism for failed enterprises, ending unproductive uses of business assets and transferring them to more efficient market participants. Seeks to provide effective mechanism along with SARFAESI However, falls short of expediting and simplifying insolvency procedures Need to introduce moratorium / stand still provisions for seeking alternate solutions Companies only - comprehensive bankruptcy/insolvency code required Fails to provide framework for cross-border insolvencies Need for an effective out-of-court restructuring mechanism Although enacted, yet to be implemented. 21

22 JJ IRANI COMMITTEE RECOMMENDATIONS J J Irani Committee on Company Reforms was set up on to Review the Companies Act of 1956 Recommended Establishment of NCLT having non intrusive and supervisory role with a commercial approach to insolvency observing the established legal principles of fairness in the process Insolvency code to be based on UNCITRAL Guide Suitable framework for Cross Border Insolvency which provides for rules of jurisdiction, recognitions of foreign judgments, co-operation and assistance among courts in different countries and choice of law is required The Government may consider adoption of UNCITRAL Model Law on Cross Border Insolvency with suitable modifications at an appropriate time 22

23 JJ IRANI COMMITTEE RECOMMENDATIONS Also recommended that Corporate insolvency may be addressed through Companies Act itself Adoption of an insolvency code covering rehabilitation and winding up A definitive and predictable time frame for the conduct of the insolvency process A time bound opportunity for revival/rehabilitation before winding up Debtors seeking rehabilitation should approach Tribunal only with a draft scheme Creditors being at least 3/4th in value may also file scheme. A limited standstill period for genuine business restructuring 23

24 Insolvency Fund Provisions relating to rehabilitation cess should be replaced by the concept of Insolvency Fund with optional contributions by companies and grants from Government Provide incentives to encourage contributions by companies to the Fund Companies which make contributions to the Fund should be entitled to certain drawing rights to meet insolvency costs and other liabilities in the event of insolvency Administration of the Fund should be by an Independent Administrator and it should not be linked/credited to Consolidated Fund of India 24

25 FUTURE REFORM Enactment of Companies Bill 2009 Constitution of a single forum to address corporate rescue, restructuring and winding up Cross Border Insolvency Framework for private insolvency professionals Reform of the Institution of official Liquidators E-Governance in Liquidation proceedings Comprehensive Insolvency Law for Corporate and Individual Insolvency 25

26 THANK YOU 26

Articles. Articles. Background of SICA, 1985

Articles. Articles. Background of SICA, 1985 Revival & Rehabilitation of Sick Companies A Paradigm Shift Pavan Kumar Vijay*, FCS, Managing Director, Corporate Professionals Capital Pvt. Ltd., New Delhi. The Companies Bill, 2009 has made a paradigm

More information

THE INSOLVENCY AND BANKRUPTCY BILL, 2015 INDIA JURIS. International Law Firm Advocates & Corporate Legal Consultants A Full Service Law Firm

THE INSOLVENCY AND BANKRUPTCY BILL, 2015 INDIA JURIS. International Law Firm Advocates & Corporate Legal Consultants A Full Service Law Firm THE INSOLVENCY AND BANKRUPTCY BILL, 2015 International Law Firm Advocates & Corporate Legal Consultants A Full Service Law Firm INTRODUCTION In India, there are two statutes dealing with personal insolvency

More information

Insolvency Law in India with Special Reference to Corporate Insolvency

Insolvency Law in India with Special Reference to Corporate Insolvency International Journal of Trade and Commerce-IIARTC January-June 2014, Volume 3, No. 1 ISSN-2277-5811 (Print), 2278-9065 (Online) SGSR. (www.sgsrjournals.com) All rights reserved. Insolvency Law in India

More information

CHAPTER I: GENERAL FRAMEWORK OF INSOLVENCY LAWS IN INDIA

CHAPTER I: GENERAL FRAMEWORK OF INSOLVENCY LAWS IN INDIA CHAPTER I: GENERAL FRAMEWORK OF INSOLVENCY LAWS IN INDIA HISTORICAL 1 BACKGROUNDP0F P The need for an insolvency law in India was first articulated in the three Presidency-towns of Calcutta, Bombay and

More information

SUMANT BATRA* PILOT PAPER 45. New Insolvency Law The Priority Reform 45

SUMANT BATRA* PILOT PAPER 45. New Insolvency Law The Priority Reform 45 New Insolvency Law The Priority Reform 45 NEW INSOLVENCY LAW THE PRIORITY REFORM SUMANT BATRA* Over the last two decades, the Indian financial system has undergone tremendous transformation. Various financial

More information

PRESS RELEASE. Parliament passes the Insolvency and Bankruptcy Code. Today is a historical day for economic reforms in India when the Rajya

PRESS RELEASE. Parliament passes the Insolvency and Bankruptcy Code. Today is a historical day for economic reforms in India when the Rajya PRESS RELEASE Parliament passes the Insolvency and Bankruptcy Code Today is a historical day for economic reforms in India when the Rajya Sabha passed the major economic reform Bill moved by the Government

More information

Corporate Insolvency Law Reform By Half Measures?

Corporate Insolvency Law Reform By Half Measures? Corporate Insolvency Law Reform By Half Measures? It was beginning to be almost unanimously felt that India s law on industrial Sickness- The Sick Industrial Companies (Special Provisions) Act 1985 (SICA)

More information

REPUBLIC OF VANUATU INSOLVENCY (CROSS - BORDER) ACT NO. 4 OF 2013. Arrangement of Sections

REPUBLIC OF VANUATU INSOLVENCY (CROSS - BORDER) ACT NO. 4 OF 2013. Arrangement of Sections REPUBLIC OF VANUATU INSOLVENCY (CROSS - BORDER) ACT NO. 4 OF 2013 Arrangement of Sections 1 Purpose... 2 2 Interpretation... 2 3 Application of Model Law on Cross-Border Insolvency in Vanuatu... 3 4 Supreme

More information

Institutional framework for insolvency resolution: role of insolvency professionals

Institutional framework for insolvency resolution: role of insolvency professionals Institutional framework for insolvency resolution: role of insolvency professionals Finance Research Group, IGIDR March 23, 2015 Professional services in insolvency proceedings Resolution of insolvency

More information

Risks and Strategies of Bankruptcy M&A: An Indian Perspective

Risks and Strategies of Bankruptcy M&A: An Indian Perspective Risks and Strategies of Bankruptcy M&A: An Indian Perspective Mohit Saraf Senior Partner Luthra & Luthra Law Offices Asia M&A Forum 2009: Opportunities in Distress March 4, 2009 SICK INDUSTRIAL COMPANIES

More information

Bankruptcy and Restructuring

Bankruptcy and Restructuring doing business in Canada 102 p Bankruptcy and Restructuring 1. Legislation and Court System The Canadian bankruptcy and insolvency regime is divided between the federal and provincial levels of government

More information

CORPORATE INSOLVENCY LAW IN INDIA. Kristin van Zwieten University of Oxford

CORPORATE INSOLVENCY LAW IN INDIA. Kristin van Zwieten University of Oxford CORPORATE INSOLVENCY LAW IN INDIA Kristin van Zwieten University of Oxford Outline The framework for bankruptcy resolution [in India] is fragmented, complex, and fraught with delay The legal structure

More information

Australia. I. Generally

Australia. I. Generally Australia Texas New York Washington, DC Connecticut Dubai Kazakhstan London I. Generally Australian bankruptcy procedure is regulated by its Corporations Law, which is a single statute that governs almost

More information

Introduction. Chapter 1. 1.1 Industrial framework in India Role of Central Public Sector Enterprises

Introduction. Chapter 1. 1.1 Industrial framework in India Role of Central Public Sector Enterprises Chapter 1 Introduction 1.1 Industrial framework in India Role of Central Public Sector Enterprises As per World Bank s Doing Business Report, 2012, India ranks 128 among 183 economies surveyed in the area

More information

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer

An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent Customer November 2011 1 An Overview of UK Insolvency Procedures and the Considerations for Banks with an Insolvent

More information

RESPONSE TO LRC PERSONAL DEBT MANAGEMENT AND DEBT ENFORCEMENT REPORT. Chapter 1: Personal Insolvency Law: Debt Settlement Arrangements

RESPONSE TO LRC PERSONAL DEBT MANAGEMENT AND DEBT ENFORCEMENT REPORT. Chapter 1: Personal Insolvency Law: Debt Settlement Arrangements Chapter 1: Personal Insolvency Law: Debt Settlement Arrangements Reform of the Bankruptcy Act The Report recommends that a thorough review of the Bankruptcy Act 1988 should be undertaken. Comment: It is

More information

CHAPTER 15 OF THE U.S. BANKRUPTCY CODE: OVERVIEW OF PROCEDURES FOR CROSS BORDER INSOLVENCIES

CHAPTER 15 OF THE U.S. BANKRUPTCY CODE: OVERVIEW OF PROCEDURES FOR CROSS BORDER INSOLVENCIES CHAPTER 15 OF THE U.S. BANKRUPTCY CODE: OVERVIEW OF PROCEDURES FOR CROSS BORDER INSOLVENCIES Judith Elkin Haynes and Boone, LLP New York, New York judith.elkin@haynesboone.com CHAPTER 15 OF THE U.S. BANKRUPTCY

More information

Financial Restructuring and Transactions IFT Information Note: No. 121. Introduction to Insolvency Processes Schemes of Arrangement and COMI shifting

Financial Restructuring and Transactions IFT Information Note: No. 121. Introduction to Insolvency Processes Schemes of Arrangement and COMI shifting INTRODUCTION This note is intended to act as an introduction to corporate insolvency procedures under the Insolvency Act 1986 (the Act ) (as amended by The Enterprise Act 2002) and otherwise together with

More information

Formalities. CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 159

Formalities. CROSS-BORDER HANDBOOKS www.practicallaw.com/restructurehandbook 159 Restructuring and Insolvency 2007/08 South Africa South Africa Leonard Katz, Edward Nathan Sonnenbergs www.practicallaw.com/0-234-3973 SECURITY AND PRIORITIES Formalities 1. What are the most common forms

More information

INDIA BANKRUPTCY LAW REFORM

INDIA BANKRUPTCY LAW REFORM I INDIA BANKRUPTCY LAW REFORM Clive Barnard: +44 20 7466 2282 - Clive.Barnard@hsf.com Kevin Pullen: +44 20 7466 2976 Kevin.Pullen@hsf.com John Whiteoak: +44 20 7466 2010 John.Whiteoak@hsf.com Soumya Rao:

More information

INSOLVENCY RELATED LIABILITY OF DIRECTORS UNDER THE COMPANIES ACT, 1956

INSOLVENCY RELATED LIABILITY OF DIRECTORS UNDER THE COMPANIES ACT, 1956 INSOLVENCY RELATED LIABILITY OF DIRECTORS UNDER THE COMPANIES ACT, 1956 A company is legally separate and distinct from its members. It is ultimately an artificial creation and it acts through its servants

More information

Partner, Ligomarc Advocates

Partner, Ligomarc Advocates Kabiito Karamagi Partner, Ligomarc Advocates Introduction The Kenneth Cook Report United Kingdom. The Tyler Committee Report Hong Kong Uganda Law Reform Commission The Reid and Priest Claire Manuel Kalenge,

More information

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS

GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS GUIDE TO INSOLVENCY IN THE CAYMAN ISLANDS CONTENTS PREFACE 1 1. Introduction 2 2. When is a Company Insolvent under Cayman Islands Law? 2 3. Formal Insolvency Procedures 2 4. Creditors Rights 4 5. Voidable

More information

COMMISSION RECOMMENDATION. of 12.3.2014. on a new approach to business failure and insolvency. (Text with EEA relevance) {SWD(2014) 61} {SWD(2014) 62}

COMMISSION RECOMMENDATION. of 12.3.2014. on a new approach to business failure and insolvency. (Text with EEA relevance) {SWD(2014) 61} {SWD(2014) 62} EUROPEAN COMMISSION Brussels, 12.3.2014 C(2014) 1500 final COMMISSION RECOMMENDATION of 12.3.2014 on a new approach to business failure and insolvency (Text with EEA relevance) {SWD(2014) 61} {SWD(2014)

More information

Brief guide to English Corporate Insolvency Law

Brief guide to English Corporate Insolvency Law Brief guide to English Corporate Insolvency Law The main English Insolvency Procedures. This guide deals with the main insolvency procedures in England and Wales, namely: > Administration, which is primarily

More information

Meaning of Corporate Debt Restructuring (CDR)

Meaning of Corporate Debt Restructuring (CDR) Corporate Debt Restructuring Ashish Makhija B.Com (Hons.), LL.B., AICWA, MICA, FCA 17/05/2008 1 Meaning of Corporate Debt Restructuring (CDR) A method used by companies with outstanding debt obligations

More information

Insolvency and enforcement procedures in England & Wales

Insolvency and enforcement procedures in England & Wales Insolvency and enforcement procedures in England & Wales Contents Introduction...01 Company Voluntary Arrangement (CVA)...02 Scheme of Arrangement (Scheme)...05 Administration / Pre-pack Administration...08

More information

Insolvency and Bankruptcy Code 2015: Economic Principles and Legal Imperatives

Insolvency and Bankruptcy Code 2015: Economic Principles and Legal Imperatives Insolvency and Bankruptcy Code 2015: Economic Principles and Legal Imperatives Richa Roy Renuka Sane Presented at the 6th Emerging Markets Finance Conference, 2015 17 December 2015 Part I Economic principles

More information

LAWCASTLES TECHNICAL PAPERS

LAWCASTLES TECHNICAL PAPERS LAWCASTLES TECHNICAL PAPERS PAPER NO. 1 OF 2006 Statutory Corporate Insolvency Procedures in Tanzania Introduction This paper reviews statutory corporate insolvency procedures in Tanzania. The paper discusses

More information

LIMITED LIABILITY PARTNERSHIP ACT [LLP ACT]

LIMITED LIABILITY PARTNERSHIP ACT [LLP ACT] LIMITED LIABILITY PARTNERSHIP ACT [LLP ACT] With the growth of Indian economy, the role played by its entrepreneurs as well as its technical and professional manpower has been acknowledged internationally.

More information

Collection Profile India

Collection Profile India Euler Hermes Collections Collection Profile India Collecting in India DSO in India is high, late payments are not regulated and ownership protection may be difficult to enforce. The court system is complex

More information

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner.

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner. Glossary of terms Administration Order a) A Court order placing the company that is, or is likely to become, unable to pay its debts under the control of an administrator following an application by, inter

More information

Official Journal of the European Union

Official Journal of the European Union 5.6.2015 L 141/19 REGULATION (EU) 2015/848 OF THE EUROPEAN PARLIAMT AND OF THE COUNCIL of 20 May 2015 on insolvency proceedings (recast) THE EUROPEAN PARLIAMT AND THE COUNCIL OF THE EUROPEAN UNION, Having

More information

Reforming the Corporate Insolvency Regime By the Secretariat to the Corporate Law Reform Committee (CLRC) Companies Commission of Malaysia

Reforming the Corporate Insolvency Regime By the Secretariat to the Corporate Law Reform Committee (CLRC) Companies Commission of Malaysia Reforming the Corporate Insolvency Regime By the Secretariat to the Corporate Law Reform Committee (CLRC) Companies Commission of Malaysia Introduction In our first article An insight to Corporate Law

More information

Guide to Insolvency and Restructuring in the Cayman Islands

Guide to Insolvency and Restructuring in the Cayman Islands Guide to Insolvency and Restructuring in the Cayman Islands TABLE OF CONTENTS Preface... 1 Frequently Asked Questions...2 PREFACE Appleby is the longest established law firm in the Cayman Islands. Our

More information

NOTE - This document is provided for guidance only and does not purport to be a legal interpretation. PERSONAL INSOLVENCY ACT 2012

NOTE - This document is provided for guidance only and does not purport to be a legal interpretation. PERSONAL INSOLVENCY ACT 2012 Background to and purpose of the Act PERSONAL INSOLVENCY ACT 2012 EXPLANATORY MEMORANDUM The Act provides for the reform of personal insolvency law and will introduce the following new non-judicial debt

More information

Slow Process of Winding up of Companies

Slow Process of Winding up of Companies Slow Process of Winding up of Companies Dr. J. P. Sharma, FCS, Department of Commerce (sdc), Faculty of Commerce & Business, Delhi School of Economics, Delhi. Amrita Singh, Lecturer, Jagan Institute of

More information

CONTENTS PART 1: GENERAL...4 PART 2: COMPANY VOLUNTARY ARRANGEMENTS...5 PART 3: RECEIVERSHIP...8 PART 4: WINDING UP...11 CHAPTER 1 GENERAL...

CONTENTS PART 1: GENERAL...4 PART 2: COMPANY VOLUNTARY ARRANGEMENTS...5 PART 3: RECEIVERSHIP...8 PART 4: WINDING UP...11 CHAPTER 1 GENERAL... INSOLVENCY LAW DIFC LAW No. 3 of 2009 CONTENTS PART 1: GENERAL...4 1. Title...4 2. Legislative Authority...4 3. Application of the Law...4 4. Date of enactment...4 5. Commencement...4 6. Interpretation...4

More information

Jersey corporate insolvency - the two regimes

Jersey corporate insolvency - the two regimes www.bedellgroup.com Jersey Guernsey London Dublin Mauritius BVI Singapore Jersey corporate insolvency - the two regimes Bedell Cristin Jersey briefing briefing Introduction There are two principal regimes

More information

Supreme Court s Judgment on Securitization- A Balancing Act

Supreme Court s Judgment on Securitization- A Balancing Act Supreme Court s Judgment on Securitization- A Balancing Act In a landmark judgment passed on 8.4.2004, the Supreme Court has upheld the constitutional validity of the Securitisation and Reconstruction

More information

Third Parties (Rights against Insurers) Act 2010

Third Parties (Rights against Insurers) Act 2010 Third Parties (Rights against Insurers) Act 2010 CHAPTER 10 CONTENTS Transfer of rights to third parties 1 Rights against insurer of insolvent person etc 2 Establishing liability in England and Wales and

More information

SARFAESI Act action: Abatement of references to BIFR

SARFAESI Act action: Abatement of references to BIFR Vinod Kothari & Company SARFAESI Act action: Abatement of references to BIFR Vinod Kothari Vinod Kothari & Company It sounds like saying if a patient is sick and is being nursed in a hospital, and in the

More information

CHAPTER 9 Municipality Bankruptcy

CHAPTER 9 Municipality Bankruptcy U.S. COURTS HTTP://WWW.USCOURTS.GOV/FEDERALCOURTS/BANKRUPTCY/BANKRUPTCY BASICS/CHAPTER9.ASPX CHAPTER 9 Municipality Bankruptcy The chapter of the Bankruptcy Code providing for reorganization of municipalities

More information

REVITALIZING STRESSED ASSETS IN INDIA: INDUSTRY PRACTITIONERS PERSPECTIVE

REVITALIZING STRESSED ASSETS IN INDIA: INDUSTRY PRACTITIONERS PERSPECTIVE REVITALIZING STRESSED ASSETS IN INDIA: INDUSTRY PRACTITIONERS PERSPECTIVE 2 CONTENT Prologue 5 Executive Summary.................................. 6 Introduction 8 Current Challenges 10 Industry Concerns

More information

Indian Scenario. IAIP Speaker Event The Indian Habitat Centre, Habitat World, New Delhi, December 28, 2013

Indian Scenario. IAIP Speaker Event The Indian Habitat Centre, Habitat World, New Delhi, December 28, 2013 Restructuring & Turnaround, Indian Scenario IAIP Speaker Event The Indian Habitat Centre, Habitat World, New Delhi, December 28, 2013 2013 Integrated Capital Services Ltd www.raas.co.in Member of Page

More information

Restructuring and insolvency in Luxembourg PricewaterhouseCoopers Sàrl Noble & Scheidecker

Restructuring and insolvency in Luxembourg PricewaterhouseCoopers Sàrl Noble & Scheidecker Restructuring and insolvency in Luxembourg PricewaterhouseCoopers Sàrl Noble & Scheidecker This article first appeared in The European Restructuring and Insolvency Guide 2005/2006 published by Globe White

More information

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy.

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy. Bankruptcy and Restructuring 121 BANKRUPTCY AND RESTRUCTURING Under Canadian constitutional law, the federal government has exclusive legislative control over bankruptcy and insolvency matters. Insolvency

More information

Circular No 16 @ November 2014

Circular No 16 @ November 2014 Circular No 16 @ November 2014 Corporate Insolvency Introduction The new Insolvency Act 2011 provides for the administration, receivership and liquidation of companies, and for the licensing of insolvency

More information

Jurisdiction and Venue in Chapter 15 Selected Issues

Jurisdiction and Venue in Chapter 15 Selected Issues Jurisdiction and Venue in Chapter 15 Selected Issues Prepared by: Jeanne P. Darcey Sullivan & Worcester LLP Boston, MA jdarcey@sandw.com October 8, 2013 Please visit us on our website at www.sandw.com

More information

Comparing the corporate insolvency framework: UK, Singapore and India

Comparing the corporate insolvency framework: UK, Singapore and India Comparing the corporate insolvency framework: UK, Singapore and India Anjali Sharma, Rajeswari Sengupta May 15, 2015 Part I What drives optimal insolvency law design What is optimal design? Insolvency

More information

County Court Fees - Including fees for family cases - From 1 October 2007. To issue a claim form where your claim is for money only and the amount is:

County Court Fees - Including fees for family cases - From 1 October 2007. To issue a claim form where your claim is for money only and the amount is: EX50 County Court Fees - Including fees for family cases - From 1 October 2007 Civil Court fees Starting your claim To issue a claim form where your claim is for money only and the amount is: up to 300

More information

Brief guide to Administration

Brief guide to Administration Brief guide to Administration Administration is a rescue procedure for companies that are, or are likely to become, insolvent. It is similar in concept to Chapter 11 proceedings in the United States but

More information

Glossary of Terms: Insolvency and Restructuring

Glossary of Terms: Insolvency and Restructuring Glossary of Terms: Insolvency and Restructuring Administration Administration is the court supervised process by which a Licensed Insolvency Practitioner called an administrator takes control of an insolvent

More information

Interim Report of The Bankruptcy Law Reform Committee

Interim Report of The Bankruptcy Law Reform Committee Interim Report of The Bankruptcy Law Reform Committee February 2015 1 Contents 1. INTRODUCTION... 5 1.1. MANDATE... 5 1.2. WORKING PROCESS OF THE COMMITTEE... 7 1.3. STRUCTURE OF THE REPORT... 7 2. EXECUTIVE

More information

ICAEW CERTIFICATE IN INSOLVENCY SYLLABUS JULY 2013

ICAEW CERTIFICATE IN INSOLVENCY SYLLABUS JULY 2013 ICAEW CERTIFICATE IN INSOLVENCY SYLLABUS JULY 2013 LEARNING OUTCOMES Module aim To ensure that students have a good grounding in the fundamentals of insolvency work to enable them to work effectively in

More information

CLEARING AND SETTLEMENT SYSTEMS BILL

CLEARING AND SETTLEMENT SYSTEMS BILL C1881 CLEARING AND SETTLEMENT SYSTEMS BILL CONTENTS Clause Page PART 1 PRELIMINARY 1. Short title and commencement... C1887 2. Interpretation... C1887 PART 2 DESIGNATION AND OVERSIGHT Division 1 Designation

More information

Some of the novelties of the draft law on bankruptcy proceedings in Albania

Some of the novelties of the draft law on bankruptcy proceedings in Albania Some of the novelties of the draft law on bankruptcy proceedings in Albania 1. Introduction. The working group on preparation of the draft law on bankruptcy proceedings took into account: The research

More information

Report on the Role of Insurance Guarantee Schemes in the WindingUp Procedures of Insolvent Insurance Undertakings in the EU/EEA

Report on the Role of Insurance Guarantee Schemes in the WindingUp Procedures of Insolvent Insurance Undertakings in the EU/EEA EIOPATFIGS12/007 25 May 2012 Report on the Role of Insurance Guarantee Schemes in the WindingUp Procedures of Insolvent Insurance Undertakings in the EU/EEA 1. Introduction This report is prepared as part

More information

An Introduction To Insolvency - Part 1

An Introduction To Insolvency - Part 1 An Introduction To Insolvency - Part 1 An Introduction To Insolvency - Part 1 Introduction A company (or LLP) will be considered to be insolvent if it is unable to pay its debts. A person can be insolvent,

More information

Comparison of Corporate Insolvency Procedures

Comparison of Corporate Insolvency Procedures Comparison of Corporate Insolvency Procedures There are five categories of insolvency procedure for companies in England, Wales and Northern Ireland. These are: Company Voluntary Arrangement (CVA) Administration

More information

Understanding the new Insolvency Code Part I: Debt restructuring for corporate debtors

Understanding the new Insolvency Code Part I: Debt restructuring for corporate debtors June 2016 Understanding the new Insolvency Code Part I: Debt restructuring for corporate debtors Understanding the new Insolvency Code Part I: Debt restructuring for corporate debtors This is the first

More information

Restructuring Overview: Chapter 11. Renée M. Dailey June 28, 2013

Restructuring Overview: Chapter 11. Renée M. Dailey June 28, 2013 Restructuring Overview: Chapter 11 Renée M. Dailey June 28, 2013 What is Chapter 11? A chapter contained in title 11 of the United States Code (the "Bankruptcy Code") which provides for the reorganization,

More information

Elements of Bankruptcy law and Business Rescue in India

Elements of Bankruptcy law and Business Rescue in India Elements of Bankruptcy law and Business Rescue in India Vaneeta Patnaik 1. Introduction The insolvency laws of India not only look for a disposal of assets but also look actively at the possibilities of

More information

Update. SARFAESI Rulings. Check at: http://india-financing.com/staff-publications.html for more write ups.

Update. SARFAESI Rulings. Check at: http://india-financing.com/staff-publications.html for more write ups. SARFAESI Rulings Prachi Narayan prachi@vinodkothari.com 7 th January, 2014 Check at: http://india-financing.com/staff-publications.html for more write ups. Copyright: This write up is the property of Vinod

More information

INSOLVENCY LAWS IN SOUTH ASIA: RECENT TRENDS AND DEVELOPMENTS. Meeting held on 27-28 April 2006

INSOLVENCY LAWS IN SOUTH ASIA: RECENT TRENDS AND DEVELOPMENTS. Meeting held on 27-28 April 2006 INSOLVENCY LAWS IN SOUTH ASIA: RECENT TRENDS AND DEVELOPMENTS by Sumant Batra Meeting held on 27-28 April 2006 This document reproduces a report by Mr. Sumant Batra written after the Fifth Forum for Asian

More information

Bermuda is a major offshore business jurisdiction with more than 13,500

Bermuda is a major offshore business jurisdiction with more than 13,500 Bermuda Kehinde AL George, partner Attride-Stirling & Woloniecki Peter CB Mitchell, senior partner PricewaterhouseCoopers Bermuda is a major offshore business jurisdiction with more than 13,500 registered

More information

EXPLANATORY MEMORANDUM TO THE DEBT RELIEF ORDERS (DESIGNATION OF COMPETENT AUTHORITIES) (AMENDMENT) REGULATIONS 2009. 2009 No.

EXPLANATORY MEMORANDUM TO THE DEBT RELIEF ORDERS (DESIGNATION OF COMPETENT AUTHORITIES) (AMENDMENT) REGULATIONS 2009. 2009 No. EXPLANATORY MEMORANDUM TO THE DEBT RELIEF ORDERS (DESIGNATION OF COMPETENT AUTHORITIES) (AMENDMENT) REGULATIONS 2009 2009 No. 1553 1. This explanatory memorandum has been prepared by the Department for

More information

OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS

OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS These Guidelines have been issued by the Insolvency Service and endorsed by the Bank of Mauritius. OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS 1. INTRODUCTION It is a generally accepted global

More information

Court fees are payable at the time you file any document or commence any process requiring a fee, unless otherwise stated.

Court fees are payable at the time you file any document or commence any process requiring a fee, unless otherwise stated. EX50 Civil and Family Court Fees From 22 April 2014 Important information This leaflet sets out a selection of civil and family court fees. It is not the full list, neither is it the authority on fees.

More information

ROLE OF OFFICIAL LIQUIDATOR IN WINDING UP. Submitted by Arathy Nair, CS Finalist

ROLE OF OFFICIAL LIQUIDATOR IN WINDING UP. Submitted by Arathy Nair, CS Finalist ROLE OF OFFICIAL LIQUIDATOR IN WINDING UP Submitted by Arathy Nair, CS Finalist INTRODUCTION In exercise of the powers conferred by Section 552 and clause (b) of the proviso to section 647, read with subsection

More information

BANKRUPTCY LAW IN THE KINGDOM OF THAILAND

BANKRUPTCY LAW IN THE KINGDOM OF THAILAND BANKRUPTCY LAW IN THE KINGDOM OF THAILAND Cynthia M. Pornavalai T: +66 2653 5559 E: cynthia.p@tillekeandgibbins.com I. Introduction The 1997 Asian financial crisis had crippled many Asian economies in

More information

Regulatory Framework and Code of Ethics governing Insolvency Practitioners in India

Regulatory Framework and Code of Ethics governing Insolvency Practitioners in India Regulatory Framework and Code of Ethics governing Insolvency Practitioners in India 10 TH August, 2010 I.1. Introduction The Companies (Second Amendment) Act, 2002 ( Amendment Act ) provided for the creation

More information

COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY. DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT CONTENTS INTRODUCTION

COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY. DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT CONTENTS INTRODUCTION DEPARTMENT of ENTERPRISE, TRADE and INVESTMENT COMPANIES REGISTRY NOTES FOR GUIDANCE ON LIQUIDATION AND INSOLVENCY CONTENTS INTRODUCTION 1. General information 2. Voluntary arrangements 3. Administration

More information

Judicial Management, Scheme of Arrangement and Winding Up in Singapore. Copyright Colin Ng & Partners LLP 1

Judicial Management, Scheme of Arrangement and Winding Up in Singapore. Copyright Colin Ng & Partners LLP 1 Judicial Management, Scheme of Arrangement and Winding Up in Singapore Copyright Colin Ng & Partners LLP 1 Introduction Economic crisis many companies hit by cash flow problems and financial difficulties.

More information

Restructuring and insolvency in the UK (England & Wales): overview

Restructuring and insolvency in the UK (England & Wales): overview GLOBAL GUIDE 2015/16 RESTRUCTURING AND INSOLVENCY Country Q&A Restructuring and insolvency in the UK (England & Wales): overview James Roome, Tom Bannister and Emma Simmonds Akin Gump LLP global.practicallaw.com/9-501-6812

More information

DEBT RESTRUCTURING RODRIGO OLIVARES-CAMINAL JOHN DOUGLAS RANDALL GUYNN ALAN KORNBERG SARAH PATERSON DALVINDER SINGH HILARY STONEFROST

DEBT RESTRUCTURING RODRIGO OLIVARES-CAMINAL JOHN DOUGLAS RANDALL GUYNN ALAN KORNBERG SARAH PATERSON DALVINDER SINGH HILARY STONEFROST DEBT RESTRUCTURING RODRIGO OLIVARES-CAMINAL JOHN DOUGLAS RANDALL GUYNN ALAN KORNBERG SARAH PATERSON DALVINDER SINGH HILARY STONEFROST Consultant Editors: LOOK CHAN HO NICK SEGAL OXPORD UNIVERSITY PRESS

More information

The interpretations, opinions, and conclusions expressed in this presentation are entirely those of the author. They do not necessarily represent the

The interpretations, opinions, and conclusions expressed in this presentation are entirely those of the author. They do not necessarily represent the The interpretations, opinions, and conclusions expressed in this presentation are entirely those of the author. They do not necessarily represent the views of the Turnaround Management Association or the

More information

First Focused Group Discussion (FGD) on Impact Assessment of Debt Recovery Laws in India December 23, 2014, Mumbai.

First Focused Group Discussion (FGD) on Impact Assessment of Debt Recovery Laws in India December 23, 2014, Mumbai. CUTS INTERNATIONAL FACILITATING ADOPTION OF IMPACT ASSESSMENT FRAMEWORK IN INDIA First Focused Group Discussion (FGD) on Impact Assessment of Debt Recovery Laws in India December 23, 2014, Mumbai Executive

More information

Bermuda. Jonathan Betts and Sarah-Jane Hurrion Cox Hallett Wilkinson Limited. Country Q&A. Restructuring and Insolvency Handbook 2011/12.

Bermuda. Jonathan Betts and Sarah-Jane Hurrion Cox Hallett Wilkinson Limited. Country Q&A. Restructuring and Insolvency Handbook 2011/12. Restructuring and Insolvency Handbook 2011/12 Bermuda Jonathan Betts and Sarah-Jane Hurrion Cox Hallett Wilkinson Limited www.practicallaw.com/9-505-8289 FORMS OF SECURITY 1. What are the most common forms

More information

立 法 會 Legislative Council

立 法 會 Legislative Council 立 法 會 Legislative Council Paper for the House Committee Meeting on 16 October 2015 Legal Service Division Report on Companies (Winding Up and Miscellaneous Provisions) (Amendment) Bill 2015 LC Paper No.

More information

INSOLVENCY (BANKRUPTCY & LIQUIDATION) AND CHARGING ORDER POLICY

INSOLVENCY (BANKRUPTCY & LIQUIDATION) AND CHARGING ORDER POLICY EK SERVICES POLICIES AND PROCEDURES INSOLVENCY (BANKRUPTCY & LIQUIDATION) AND CHARGING ORDER POLICY EK Services Insolvency & Charging Order Policy 1 Contents 1. Introduction and purpose of policy document

More information

INSOLVENT TENANTS OPTIONS FOR LANDLORDS

INSOLVENT TENANTS OPTIONS FOR LANDLORDS INSOLVENT TENANTS OPTIONS FOR LANDLORDS Contents 1 Tenant in Liquidation... 2 2 Tenant in Administration... 3 3 Tenant in Receivership... 3 4 Tenant in Company Voluntary Arrangement... 5 5 Tenant in Bankruptcy...

More information

Closure of a Company under Companies

Closure of a Company under Companies Closure of a Company under Companies Act,2013 IQBAL KAUR & ASSOCIATES COMPANY SECRETARIES 12/40, First Floor, Subhash Nagar, New Delhi 110027 E-mail :, Website : Mobile: 9990847066, 7053878398 Winding

More information

Foreign Currency Forward Master Contract

Foreign Currency Forward Master Contract Foreign Currency Forward Master Contract Foreign Currency Forward Master Agreement ( Agreement ), dated as of, 20 between the client ( Client ) and Tempus, Inc. ( Tempus ). BACKGROUND 1. Forward Contract.

More information

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd Insolvency and Business Recovery Procedures A Brief Guide Compiled by Compass Financial Recovery and Insolvency Ltd I What is Insolvency? Insolvency is legally defined as: A company is insolvent (unable

More information

Court fees are payable at the time you file any document or commence any process requiring a fee, unless otherwise stated.

Court fees are payable at the time you file any document or commence any process requiring a fee, unless otherwise stated. EX50 Civil and Family Court Fees From 6 April 2015 Important information This leaflet sets out a selection of civil and family court fees. It is not the full list, neither is it the authority on fees.

More information

Winding Up of Companies

Winding Up of Companies Winding Up of Companies 1. Introduction 2. Winding Up & Dissolution 3. Reasons for Winding Up A Company 4. Modes of Winding Up A Company 5. Grounds for Compulsory Winding Up 6. Power of the Court after

More information

Court fees are payable at the time you file any document or commence any process requiring a fee, unless otherwise stated.

Court fees are payable at the time you file any document or commence any process requiring a fee, unless otherwise stated. EX50 Civil and Family Court Fees High Court and County Court - From April 2011 Important information This leaflet sets out a selection of civil and family court fees. It is not the full list, neither is

More information

Cayman Islands Insolvency Law

Cayman Islands Insolvency Law Cayman Islands Insolvency Law Foreword This memorandum has been prepared for the assistance of those who are considering issues pertaining to the insolvency of companies in the Cayman Islands. It deals

More information

Assets Anything that belongs to the debtor that may be used to pay his/her debts.

Assets Anything that belongs to the debtor that may be used to pay his/her debts. This is a brief explanation of some of the terms you may come across in debt and insolvency proceedings. Please note that this glossary is for general guidance only. Many of the terms have a specific technical

More information

Corporate restructuring guidelines Insolvency

Corporate restructuring guidelines Insolvency Corporate restructuring guidelines Insolvency Prepared by: 1 Whitney Moore Published by: Irish Business and Employers Confederation 84-86 Lower Baggot Street Dublin 2 Date of publication: April 2010 Author:

More information

Debt Management and Debt Enforcement: Law Reform Commission s Recommendations. Reforming the Law on Debt

Debt Management and Debt Enforcement: Law Reform Commission s Recommendations. Reforming the Law on Debt Debt Management and Debt Enforcement: Law Reform Commission s Recommendations Reforming the Law on Debt Sixth Annual Conference of the Law Reform Commission Dublin Castle, November 18 2009 Background to

More information

3. Forms. Part II Modes of winding up 4. Modes of winding up. -

3. Forms. Part II Modes of winding up 4. Modes of winding up. - 11-010 1 (k) Officer includes any designated partner, partner, employee of the LLP and any person in accordance with whose directions or instructions the partners of the LLP have been accustomed to act;

More information

THE DRAFT INSOLVENCY AND BANKRUPTCY BILL, 2015 KEY ISSUES AND SUGGESTIONS

THE DRAFT INSOLVENCY AND BANKRUPTCY BILL, 2015 KEY ISSUES AND SUGGESTIONS THE DRAFT INSOLVENCY AND BANKRUPTCY BILL, 2015 KEY ISSUES AND SUGGESTIONS The Insolvency and Bankruptcy Bill, 2015 Key Issues and suggestions For ease of reference, the comments / suggestions have been

More information

The main source of law relating to corporate insolvency in Jamaica is Part

The main source of law relating to corporate insolvency in Jamaica is Part Jamaica Myers, Fletcher & Gordon and PricewaterhouseCoopers Jamaica Peter Goldson, partner Gina Phillipps-Black, partner Shuana-Kaye A Hanson, associate Myers, Fletcher & Gordon John Wesley Lee, partner

More information

This article aims to highlight the following concepts in the context of the restructuring of debt.

This article aims to highlight the following concepts in the context of the restructuring of debt. UK Tax Alert June 8, 2015 Proposed New UK Tax Rules for Debt Restructuring 1. Executive Summary The U.K. corporate tax landscape has been undergoing reform for a number of years. A significant part of

More information

DEBT. Law guide - Debt, bankruptcy & liquidation

DEBT. Law guide - Debt, bankruptcy & liquidation DEBT Law guide - Debt, bankruptcy & liquidation Contents Bankruptcy... 3 Arrangements with debtor... 6 Alternatives to bankruptcy... 8 Liquidation... 10 Distribution of assets... 11 Alternatives to liquidation...

More information

Proposed New Laws for Personal Insolvency

Proposed New Laws for Personal Insolvency Proposed New Laws for briefing Draft legislation proposes to alter the law and procedures of personal insolvency in radical ways. The proposals include the establishment of an independent Insolvency Service

More information