Articles — IBC & Insolvency India has two powerful legislative frameworks that govern the rights of homebuyers in distressed real estate projects: the Real Estate (Regulation and Development) Act 2016 (RERA) and the Insolvency and Bankruptcy Code 2016 (IBC). RERA gives homebuyers the right to seek refunds, compensation, and project completion through Real Estate Regulatory…
Articles — IBC & Insolvency India’s conventional Corporate Insolvency Resolution Process is a creditor-driven, public-facing mechanism that displaces existing management, triggers a moratorium, and operates under strict judicial supervision. For small businesses — especially Micro, Small and Medium Enterprises (MSMEs) — this process can be disruptive, expensive, and stigmatising. Recognising this reality, the Insolvency and…
Articles — IBC & Insolvency The Supreme Court of India’s judgment in Pioneer Urban Land and Infrastructure Ltd vs Union of India (2019) SCC OnLine SC 1005, delivered on 9 August 2019, marked a watershed moment in Indian real estate law and insolvency jurisprudence. By upholding the constitutional validity of amendments that classified homebuyers as…
Articles — IBC & Insolvency When a Corporate Insolvency Resolution Process (CIRP) fails to produce an approved resolution plan — or when the Committee of Creditors (CoC) determines that liquidation offers a better outcome than any available plan — the Insolvency and Bankruptcy Code 2016 provides a structured liquidation mechanism under Chapter III of Part…
Articles — IBC & Insolvency I. Why Legally Compliant Resolution Plans Frequently Fail One of the most common but flawed assumptions in insolvency practice is that a resolution plan which complies with Section 30(2) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) will, by that fact alone, secure approval from the Committee of Creditors (“CoC”)….
Articles — IBC & Insolvency 1. The Two Tests Every Resolution Plan Must Pass A resolution plan “survives” only when it clears two independent tests that the Insolvency and Bankruptcy Code, 2016 (“IBC”) deliberately keeps separate. First, it must secure approval from the Committee of Creditors (“CoC”), a commercial decision taken by voting share based…
Articles — IBC & Insolvency A resolution plan is the final instrument through which a distressed company is rescued from insolvency and returned to productive economic life. Under the Insolvency and Bankruptcy Code 2016, a resolution plan must thread a narrow needle — it must satisfy multiple mandatory statutory requirements while also persuading the Committee…
Articles — IBC & Insolvency The Committee of Creditors (CoC) is the nerve centre of every Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016. It is the body that approves or rejects resolution plans, decides whether to liquidate the corporate debtor, extends the resolution period, and exercises collective commercial wisdom on behalf…
Articles — IBC & Insolvency Section 29A of the Insolvency and Bankruptcy Code 2016 is one of the most far-reaching statutory disqualifications in Indian commercial law. Inserted by the Insolvency and Bankruptcy Code (Amendment) Ordinance 2017 and subsequently enacted, it was designed to prevent the very persons who caused a company’s insolvency — principally promoters…
Articles — IBC & Insolvency When promoters and directors execute personal guarantees in favour of lenders as a condition of credit facilities to their companies, they often underestimate the implications of those guarantees under the Insolvency and Bankruptcy Code 2016. The Code — particularly after the Supreme Court’s watershed ruling in Lalit Kumar Jain vs…
