Bankruptcy Laws Notes | B.A. LL.B. (Five Year Course) Semester 8 | Mumbai University | munotes

Contents

Module I

1. What Insolvency and Bankruptcy Mean 1
2. Insolvency Law in India Before the Code 5
3. The Corporate Half Before the Code 8
4. Why Parliament Wrote the Code 11
5. Where Parliament Got the Power 14
6. How the Code Came Into Force, Piece by Piece 17
7. Short Title, Extent and Commencement 20
8. To Whom the Code Applies 22
9. The Shape of the Code 26
10. Definitions: The Words Part I Settles 29
11. Definitions: Person, Property and Transaction 32
12. The Insolvency and Bankruptcy Fund 36
13. The Central Government's Powers Over the Board 39
14. Notifying Financial Service Providers 42
15. Rules, Regulations and Removing Difficulties 45
16. The Code and Small Business 49
17. Bar of Jurisdiction 52
18. Public Servants and Good Faith 55
19. Appeal, Revision and the Special Court 58
20. The Code Overrides Other Laws 62
21. Limitation 65
22. Agreements With Foreign Countries 68
23. Repeal, Savings and Transitional Provisions 71
24. What the Code Changed in Eleven Other Acts 74

Module II

1. When Part II Applies, and the One Crore Threshold 77
2. The Words Part II Settles: Creditors and Debt 80
3. The Words Part II Settles: the Process Words 84
4. Who May Start a Corporate Insolvency Resolution Process 88
5. The Financial Creditor's Application 91
6. The Operational Creditor's Demand Notice 95
7. The Operational Creditor's Application 98
8. The Corporate Applicant's Own Application 101
9. The COVID Suspension 104
10. Who May Not Apply 107
11. Choosing Between a Pre-Pack and a CIRP Application 110
12. The Time Limit, and the Outer Wall 112
13. Withdrawal After Admission 115
14. Moratorium Declared, and Announced 118
15. The Moratorium 121
16. The Interim Resolution Professional 125
17. The Interim Professional Takes Over 128
18. Duties of the Interim Resolution Professional 132
19. Running the Company as a Going Concern 136
20. The Committee of Creditors 139
21. The First Meeting, and the Resolution Professional 144
22. Meetings of the Committee of Creditors 147
23. Duties of the Resolution Professional 150
24. The Authorised Representative 154
25. Avoidance Applications Do Not Stop the Process 157
26. Replacing the Resolution Professional 160
27. Actions That Need the Committee's Approval 163
28. Transfer of a Guarantor's Assets 166
29. The Information Memorandum 170
30. Who Cannot Be a Resolution Applicant 173
31. Submitting a Resolution Plan 177
32. Approval of the Resolution Plan 182
33. Appeal Against Approval 187
34. Immunity for Prior Offences 190
35. Fast Track: What It Was, and Why It Is Gone 194
36. What Parliament Has Passed and Not Yet Commenced 198
37. When Liquidation Begins 203
38. The Liquidator 208
39. Powers and Duties of the Liquidator 212
40. The Liquidation Estate 216
41. The Claims Sections That Were Taken Away 220
42. Preferential Transactions 224
43. Undervalued Transactions 228
44. Transactions Defrauding Creditors 232
45. Extortionate Credit Transactions 236
46. The Secured Creditor's Choice 240
47. The Waterfall 244
48. Dissolution 249
49. Voluntary Liquidation 253
50. The Pre-Pack: Who May Use It 258
51. Before a Pre-Pack Starts 262
52. The Pre-Pack Timetable and Moratorium 265
53. The Resolution Professional in a Pre-Pack 269
54. The Debtor Stays in Charge 273
55. The Pre-Pack Committee, and the Swiss Challenge 277
56. Approval, Appeal and Termination of a Pre-Pack 282
57. The Adjudicating Authority for Corporate Persons 287
58. Appeals to the Appellate Tribunal 291
59. Appeal to the Supreme Court 295
60. Expeditious Disposal, and Frivolous Proceedings 298
61. Fraudulent or Malicious Initiation 302
62. Fraudulent and Wrongful Trading 306
63. Offences: Concealment and Misconduct 311
64. Offences: Books, Statements and Representations 316
65. Offences: False Information, and the Pre-Pack Offences 320

Module III

1. Part III, and How Little of It Is Law 325
2. The Words Part III Settles 329
3. Who May Ask for a Fresh Start 334
4. Applying for a Fresh Start Order 338
5. Admission, and the Fresh Start Moratorium 343
6. Objections, Duties and the End of a Fresh Start 347
7. The Debtor's Application for Insolvency Resolution 353
8. The Creditor's Application 357
9. The Interim Moratorium 361
10. Appointing the Resolution Professional Under Part III 365
11. The Report, and the Decision 369
12. The Part III Moratorium 374
13. Notice, Claims and the List of Creditors 378
14. The Repayment Plan 382
15. The Meeting of Creditors Under Part III 387
16. Approving the Repayment Plan 392
17. The Order on the Repayment Plan 396
18. Implementing the Plan, and What Ends It 400
19. Applying for Bankruptcy 405
20. The Effect of the Application, and the Trustee 410
21. The Bankruptcy Order 414
22. The Effect of the Bankruptcy Order 418
23. The Statement of Financial Position 423
24. Claims and Creditors in Bankruptcy 427
25. Meetings of Creditors in Bankruptcy 431
26. Administration and Distribution of the Estate 435
27. Discharge and Its Effect 438
28. The Disqualifications and Restrictions of a Bankrupt 443
29. The Bankruptcy Trustee: Conduct, Fees and Office 449
30. Functions, Rights and Powers of the Trustee 454
31. Vesting, and the Estate of the Bankrupt 459
32. Restrictions on Disposition, and After-Acquired Property 463
33. Onerous Property and Disclaimer 467
34. Avoidable Transactions Under Part III 472
35. Obligations Under Contracts, and the Death of a Bankrupt 480
36. Proof of Debt 483
37. Mutual Credit and Set-off 487
38. Dividends and Distribution 490
39. The Priority of Payment of Debts 495
40. The Debt Recovery Tribunal as Adjudicating Authority 500
41. Appeal Under Part III 504
42. Offences and Penalties Under Part III 508

Module IV

1. The Board Established 513
2. The Constitution of the Board 516
3. Removal of a Member 519
4. The Chairperson, and the Meetings 522
5. Designating a Financial Sector Regulator 525
6. Powers and Functions of the Board 527
7. Committees, and the Condonation of Delay 532
8. No Agency Without a Certificate 534
9. The Principles That Govern Registration 536
10. Registering an Insolvency Professional Agency 538
11. Appeal Against the Board's Order 542
12. The Governing Board of an Agency 544
13. What an Agency Does 547
14. Who May Act as an Insolvency Professional 549
15. The Functions and Obligations of a Professional 552
16. Insolvency Professional Entities 556
17. No Information Utility Without a Certificate 559
18. Core Services 562
19. The Obligations of an Information Utility 564
20. Submitting and Authenticating Financial Information 566
21. Complaints and Investigation 569
22. Show Cause, and the Disciplinary Committee 572
23. The Finances of the Board 576
24. Registered Valuers 579
25. Registered Valuers Organisations 585