Articles and Updates

• Sawant Singh , Neha Naik and Madhavi Doshi - 30-03-2021

Brand Realty Services Ltd., the Operational Creditor ("Petitioner") filed an application under Section 9 of the IBC against Sir John Bakeries India Pvt. Ltd. ("Corporate Debtor") for initiating a Corporate Insolvency Resolution Process ("CIRP"), in view of the pending dues under an Account Settlement Agreement entered into between the parties on 15 June 2018 ("Settlement Agreement").

• Sawant Singh , Neha Naik and Madhavi Doshi - 30-03-2021

In a judgment in the matter of Brand Realty Services Ltd. v. Sir John Bakeries India Pvt. Ltd.1 the NCLT Delhi ("NCLT") clarified that unpaid dues under a settlement agreement cannot be considered as an 'Operational Debt' under Section 5(21) of the Insolvency and Bankruptcy Code, 2016 ("IBC"), as the NCLT "is not a recovery court".

• Sawant Singh and Aditya Bhargava - 24-03-2021

Non-banking financial companies (NBFCs) have grown rapidly, and are increasingly interconnected to capital markets and other components of the financial system. The dominance of NBFCs in the fintech space and the reliance that retail users place on payments systems that NBFCs manage and operate has led to increasing concern on systemic risks they pose. The ongoing liquidity crisis and the covid-19 pandemic has brought into focus the need for an updated governance framework for NBFCs. The RBI saw “a need to review the regulatory framework in line with the changing risk profile of NBFCs” and issued a discussion paper for feedback.

• Gautam Bhatikar , Madhavi Doshi and Sanjeev Sambasivan - 23-03-2021

In a recent judgment1, the Supreme Court of India ("Supreme Court") held that even after admission of a winding up petition, and after appointment of an official liquidator, discretion rests with the Company Court to transfer the petition to NCLT under Section 434 of the Companies Act 2013 ("2013 Act"). The appeals arose out of a division bench judgment of Delhi High Court by which a single judge's order transferring a winding up petition to NCLT was upheld.

• Vasanth Rajasekaran and Saurabh Babulkar - 23-03-2021

The Hon'ble Supreme Court in the recent decision of P. Mohanraj & Ors. v. M/s Shah Brothers Ispat Pvt. Ltd.1has resolved the conundrum of whether the proceedings under Sections 138 and 141 of the Negotiable Instruments Act, 1881 (NI Act) can be said to be covered by the moratorium provision, under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC). This article briefly examines how the Hon'ble Supreme Court analysed the scope of Section 14 of the IBC to arrive at its judgment.