Liquidation Value

The Quarterly Newsletter of the Insolvency and Bankruptcy Board of India January - March, 2020 | Vol.
14
Liquidation
Value Resolution
Value?
Fair
Value
Enterprise
Value
CONTENTS From Chairperson’s Desk _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2
IBBI Updates
•
•
•
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4
Legal and Regulatory Framework
Measures in the wake of COVID-19

Central Government
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5
Insolvency and Bankruptcy Board of India

• Other Authorities
Orders _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9
• Supreme Court
• High Courts
• National Company Law Appellate Tribunal
• National Company Law Tribunal
• Special Courts
• Insolvency and Bankruptcy Board of India
Corporate Processes _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 16
• Insolvency Resolution
• Liquidation
• Voluntary Liquidation
Individual Processes _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 21
Service Providers _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 21
• Insolvency Professionals
• Information Utility
• Registered Valuers
• Complaints and Grievances
Examinations _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 24
• Limited Insolvency Examination

• Valuation Examinations
Building Ecosystem _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 24
Advocacy and Awareness _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 25
“Due to the Insolvency and Bankruptcy Code, nearly `3.5 lakh crore have also been recovered by
the banks and other institutions.”
Hon’ble President of India in this address to the Joint Session of Parliament on January 31, 2020
ÞlkfFk;ks] vktdy insolvency vkSj bankruptcy code IBC dh bruh ppkZ gksrh gS] ysfdu ;s flQZ bruk iSlk okil vk;k] mruk
iSlk okil vk;k& ogka rd gh lhfer jgrh gSA ysfdu oks mlls Hkh vkxs gSA vki lHkh ;s csgrj tkurs gSa fd dqN fLFkfr;ksa esa /ka/ks
ls ckgj fudyuk gh dbZ ckj le>nkjh ekuk tkrk gSA ;s t:jh ugha dh tks daiuh lQy u gks jgh gks] mlds ihNs dksbZ lkft'k
gh gks] dksbZ xyr bjknk gks] dksbZ ykyp gks; ;s t:jh ugha gSA ns'k esa ,sls m|fe;ksa ds fy, ,d jkLrk rS;kj djuk vko';d Fkk
vkSj IBC us bldk vk/kkj r; fd;kA vkt ugha rks dy] bl ckr ij v/;;u t:j gksxk fd IBC us fdrus Hkkjrh; m|fe;ksa dk
Hkfo"; cpk;k] mUgsa ges'kk&ges'kk ds fy, cckZn gksus ls jksdkAÞ
Hon’ble Prime Minister in his address at the centenary celebrations of Kirloskar Group on January 6, 2020
Þeqfä dk ;s vfHk;ku d‚jiksjsV oyZ~M esa Hkh pykA IBC cukdj geus Status Quo cnyk vkSj gtkjksa djksM+ #i, dh okilh
lqfuf'pr djus ds lkFk gh] eqlhcr esa Qalh daifu;ksa dks ,d ekxZ Hkh fn[kk;kA ojuk gekjs ogka one way Fkk ----- vk rks ldrs Fks
ysfdu fudy ugha ldrs Fks geus fudyus ds fy, Hkh volj iSnk fd;s gSaAß
Hon'ble Prime Minister in his address at Global Business Summit by Economic Times on March 6, 2020
From Chairperson's Desk
The Art of Value Maximisation in CIRP
A unidirectional approach is antithetical to value maximisation, while higher level of information
adds value to value maximisation.
Through this Column I have been attempting to explain the several systems, customer base, and brand value. There is no denition of RV in
features of the Code that drive value maximisation. Value, however, is a the Indian context. The US Courts have dened reorganization value,
misnomer and has several context specic shades and colours in the equivalent of RV in the US context, as the present value of future
commercial world. One needs to tread carefully while aiming to maximise anticipated earnings of the CD. RV intuitively means the amount paid
the value in a corporate insolvency resolution process (CIRP), as under a resolution plan that results in the resolution applicant acquiring
unidirectional approach may yield sub-optimal outcomes. The following complete ownership and control of the assets of a CD as a going concern.
may help in appreciating some of the dynamic aspects in practice. In this sense, RV equals EV.
Value ≠ Price: The Code envisages maximisation of ‘value’, and not However, in common parlance, RV refers to the amount of money a
maximisation of ‘price’. The value improves if business is continued and its resolution applicant puts on the table for resolution of a CD as a going
assets are used more efciently. Efciency may improve from a change of concern. It is less than EV to the extent the resolution plan allows pre-
management, technology, or product portfolio; acquisition or disposal of resolution shareholders to continue with the CD, post-resolution. It is
assets, businesses or undertakings; restructuring of the organisation, more than EV to the extent the resolution plan provides for purposes,
business model, ownership, or balance sheet; strategy of turn-around, such as, infusion of funds to rehabilitate / scale up the business post-
buy-out, acquisition, or takeover; and so on. The Code, therefore, resolution, over and above settlement of all claims. It varies from EV
envisages a resolution plan to provide for anything and everything, subject depending on the strategy of resolution. For example, if a resolution plan
to applicable laws, that maximises the value of assets. It provides for CIRP converts all claims to equity, RV could be zero. Many other factors,
whereby a collective body of creditors, namely, committee of creditors including market imperfections, contribute to RV diverging from EV.
(CoC) and resolution applicants interact with one another to arrive at a LV ≠ Realisable value: LV is estimated realisable value of the assets of
resolution plan that maximises the value of the assets of the CD. For this the CD if it were liquidated on the insolvency commencement date (ICD).
purpose, the CoC applies its mind on the feasibility and viability of While taking a decision whether to accept a resolution plan, one often
resolution plans and capability as well as credibility of resolution considers LV as the default outcome. This is based on the premise that at
applicants. The Code does not envisage a sale whereby a buyer pays a sum least LV would be realised on liquidation. Very simplistically, consider
of money, called ‘price’, to the seller in exchange of the CD or its assets. If three dates: CIRP commences on March 31, 2019, liquidation process
it were so, the CD could be simply placed on an auction platform and sold commences on March 31, 2020 after failure of CIRP, and sale proceeds of
to the highest bidder to maximise the price. liquidation estate is realised on March 31, 2021. The LV is 200 on the ICD.
CD ≠ Claimants: Though the Code envisages maximisation of value of As value usually declines with time, it may reduce to 195 by March 31,
assets, the CoC, at times, has a dilemma, whether the resolution plan 2020 and further to 190 by March 31, 2021. If cost of realisation is 3 and
should maximise value of the assets of the CD or realisations for claimants cost of redeployment is 2, net realisation is 185. The NPV of realisation of
or both. Differently put, whether to maximise the interests of the CD or 185 on March 31, 2021 is 180 on March 31, 2020, when resolution plan
of claimants? Infusion of funds to the CD may improve the value of assets is considered and rejected. Hence the realisable value is 180, while
but may not improve realisation for a claimant. Similarly, a lower hair cut LV is 200.
improves realisations for a claimant but may not improve value of assets. The above nuances demonstrate that decisions involving values cannot be
Thus, maximisation of value for claimants may not always maximise the straight jacketed as either black or white. One does not decide in favour of
value of the assets of the CD and vice versa. Further, claimants are not a X because A exceeds B. Such decisions require tremendous commercial
homogeneous lot. A resolution plan may yield different realisations for wisdom and cannot be scrutinised ex-ante to determine if it is
different claimants. Thus, a creditor has further dilemma whether to appropriate. That is why the Code empowers the CoC to take
maximise realisations for the class of claimants he belongs to or for all commercial decisions, after application of mind, and keeps such decisions
claimants. beyond judicial scrutiny. It does not prohibit approval of a resolution plan
Yet another dilemma is whether to maximise value for shareholders who where RV is less than EV or even LV, or rejection of a resolution plan
do not submit a claim during the CIRP. A resolution plan typically provides where RV exceeds LV or even EV.
for the amounts payable to claimants. This is based on the premise that by The CIRP of United Seamless Tubulaar Pvt. Ltd. is instructive in this regard.
the time a CD gets into CIRP, its equity is zero or negative. This premise The CoC and subsequently the Adjudicating Authority (AA) approved a
may not always hold good. A default, which is the trigger for CIRP, does resolution plan that provided for an upfront payment of `477 crore. On an
not necessarily mean that the value of equity is completely eroded. appeal, the NCLAT directed the resolution applicant to modify the plan to
Recognising this, the Code entitles the shareholders to receive the increase upfront payment to `598 crore, which is the average liquidation
balance sale proceeds of liquidation estate after all claims are fully satised, value. On further appeal, the Supreme Court, in Maharashtra Seamless
and does not mandate a resolution plan to cancel the existing shares. Limited Vs. Padmanabhan Venkatesh & Ors., observed that there is no
Withdrawal of large number of applications for CIRP, before or after provision in the Code or regulations which prescribes that the RV has to
admission, and satisfaction of all claims in full in some CIRPs evidence this. match the LV and that the object behind prescribing the valuation process
Resolution value (RV) ≠ Enterprise value (EV): Sans technical is to assist the CoC to take an appropriate decision on a resolution plan. It
niceties and nuances, EV means the present value of future anticipated reiterated that once a resolution plan is approved by the CoC, the AA
earnings of the CD, which one is willing to pay to acquire it as a going- ought to cede ground to the commercial wisdom of the creditors rather
concern, along with its work force, operational plants, licenses and than assess the resolution plan itself.
Insolvency and Bankruptcy News 2

Table: Decision on Resolution Plans information, the CoC is likely to reject resolution plans in respect of all
Description CD 1 CD 2 CD 3
Information Level I
three CDs. While the LV is same for all three CDs, the debt claims varies
Liquidation Value 200 200 200 across them, as captured in the next level of information. The CoC is likely
Resolution Value 190 190 190 to accept resolution plan for CD1, RV being more than debt claims. The
Decisions Reject Reject Reject next level of information captures the realisable value, where the CoC
Information Level II accepts resolution plans in case of all three CDs, the RV being more than
Liquidation Value 200 200 200
Debt Claims 150 200 250
realisable value. Let us introduce further information, which breaks up RV,
Resolution Value 190 190 190 purpose-wise. Since the RV towards debt claims is less than the realisable
Decision Accept Reject Reject value on liquidation, resolution plan in respect of CD1 is likely to be
Information Level III rejected. Thus, with the rst level of information, resolution plan in
Liquidation Value 200 200 200 respect of all three CDs are rejected, while all three are accepted with the
Realisable Value on Liquidation 180 180 180
third level of information. The resolution plan in respect of each CD is
Resolution Value 190 190 190 accepted at two levels of information and rejected at other two levels of
Decision Accept Accept Accept information.The above working assumes that the CD has only one kind of
Information Level IV debt and it is secured, the CoC is maximising the interests of creditors,
Liquidation Value 200 200 200 and the RV, LV, realisable value, etc. are exogenous variables to keep the
decision making simple. It avoids host of complications associated with
Realisable Value on Liquidation 180 180 180
Resolution Value 190 190 190 determination of RV or LV, different objective functions of members of the
Break-up of Debt Claims 130 180 190 CoC, etc. Yet the decision changes with every additional piece of
Resolution Equity 10 00 00 information.
Value Induction 50 10 00
Decision Reject Accept Accept
With this understanding, the Code avoids prescribing any rule or formula
for decision making. It leaves it to the wisdom and ingenuity of the nancial
Let us delve into this a little deeper with an example (Table above). creditors to decipher the colours and, if higher degree of information is
Assuming that the CoC is maximising interests of its creditors, it would available, the shades as well. Though value maximisation is constrained
accept a resolution plan, where the sum available for creditors is not less optimisation, those constraints get relaxed with higher degree of
than their claims or the realisable value, whichever is lower. There are information, making it a colourful art, rather than a bland, black and white
three CDs with a LV of 200 each, as presented in the table. The best arithmetical calculation.
resolution plan in each case offers a RV of 190 each. With this level of (Dr. M. S. Sahoo)
NCLAT and NCLT Colloquium at New Delhi on March 7, 2020
3 Insolvency and Bankruptcy News

personal guarantors to corporate debtors notied respectively by the
IBBI Updates MCA on November 15, 2019 and IBBI on November 20, 2019,
Dr. M. S. Sahoo, Chairperson, IBBI along with senior ofcers of IBBI and
Annual Report and Annual Accounts 2017-18 of the Ministry appeared before the Lok Sabha Committee on
In accordance with the Insolvency and Bankruptcy Board of India (Annual Subordinate Legislation on January 9, 2020.
Report) Rules, 2018, the Annual Report of the IBBI, for the year 2017-18, In connection with examination of the RBI Prudential framework for
was laid before the Lok Sabha and the Rajya Sabha on March 16, 2020 and stressed assets, Dr. M. S. Sahoo, Chairperson, IBBI along with senior
March 17, 2020, respectively. Further, as per the provisions of the ofcers of the Ministry appeared before the Rajya Sabha Committee on
Insolvency and Bankruptcy Board of India (Form of Annual Statement of Subordinate Legislation on January 17, 2020.
Accounts) Rules, 2018, the Annual Accounts of the IBBI, for the year 2017-
18, were laid before the Rajya Sabha and the Lok Sabha on March 17, 2020 In connection with the examination of the Insolvency and Bankruptcy
and March 23, 2020 respectively. Code (Second Amendment) Bill, 2019 and Demand for Grants of the
MCA, Dr. M. S. Sahoo, Chairperson, IBBI, along with senior ofcers of the
International Women's Day Celebration IBBI and of the Ministry appeared before the Standing Committee on
IBBI organised a Seminar on the occasion of International Women's Day at Finance on February 24, 2020.
New Delhi on March 8, 2020. The Seminar featured the key note address
by Ms. Meenakashi Lekhi, Hon'ble Member of Parliament and Employee Trainings and Workshop
Chairperson, Committee on Public Undertakings, Lok Sabha; special
address by Dr. M. S. Sahoo, Chairperson, IBBI and address by Dr. (Ms.) IBBI organised the following workshops and trainings for its ofcers:
Date Nature of Programme/Subject Faculty
Mukulita Vijayawargiya, Whole Time Member, IBBI followed by two panel 09-01-20 Cross Border Insolvency Ms. Kanika Kitchlu-Connolly, Partner, TLT
discussions on the themes “Women and Professions in India: Breaking the LLP, UK and Mr. Prashan Patel, Associate
Glass Ceiling” chaired by Ms. Maneesha Dhir, Advocate; and “Women as Director, Grant Thornton, UK
20-01-20 Cross Border Insolvency Ms. Kay V. Morley, Partner and Mr. Barnaby
Insolvency Professionals and Registered Valuers” chaired by Ms. Mamta Stueck, Partner, Jones Day Law Firm, UK
Binani, Insolvency Professional. 23-01-20 to Enforcement (Complaints, Mr. P. K. Nagpal, former Executive Director,
24-01-20 Inspections, Show Cause SEBI.
Ms. Lekhi emphasised the convergence of virtues in a woman to Notices and Adjudication)
restructure and manage social and personal relationships; and to further 04-03-20 Cross Border and Recovery Hon’ble Justice Mr. James Pickering,
the objectives of the IBC to resolve stressed assets rather than liquidating of Assets Dissipated Abroad Queen’s Counsel, UK
the same. Citing examples of permanent commission in the armed forces,

she pointed out that genderisation of the society has proved to be a failure.
Workshop on Cross Border Insolvency, January 20, 2020

Ms. Meenakashi Lekhi at the Seminar on International Women's Day,
March 8, 2020
Contribution to PM-CARES Fund

The employees of IBBI contributed `5 lakh to the Prime Minister's Citizen
Assistance and Relief in Emergency Situations Fund set up for providing
relief to those affected by the outbreak of COVID-19 pandemic.
Ofce Closure for Lockdown
In pursuance of an Order dated March 24, 2020 of the Ministry of
Corporate Affairs (MCA) ordering closure of all ofcers of MCA and
autonomous bodies under MCA in the view of health hazard posed by the
ensuing COVID-19 pandemic, the ofces of IBBI were closed for a period
of 21 days with effect from March 25, 2020. However, all ofcers and
employees of IBBI continued to work from home.
Evidence before Parliamentary Committees
In connection with examination of the rules and regulations relating to

Workshop on Cross Border Insolvency, March 4, 2020 Talk by Hon'ble Mr. Ashok Kumar Mishra, February 6, 2020
The ofcers of IBBI attended the following workshops and training

programmes:
Date Organised by Nature of the Programme/ Subject No. of Ofcers
08-01-20 to 10-01-20 FOIR & IICA Regulatory Impact Assessment 02
10-02-20 to 12-02-20 High Commission Seminar on Bankruptcy and Distressed 02
of India Investment Market in India and Meeting
with UK Insolvency Services
13-02-20 to 14-02.20 FCO, UK Insolvency Knowledge 01
Exchange Programme
12-02-20 to 14-02-20 Indian Institute Fintech for Leadership in the 02
of Management, Digital World
Kolkata.
14-02-20 to 28-02-20 Ministry of Law & 23rd Appreciation Course in 02
Justice, Legislative Legislative Drafting
Department
24-02-20 to 26-02-20 IBIS, Pune, Hinjewadi. INS-AS (Indian Accounting Standards) 01
04-03-20 to 06-03-20 MCA through IICA Governance, Regulatory and Compliance 01
Management with respect to Goals and
Functions of MCA Talk by Hon'ble Mr. B. S. V. Prakash Kumar, February 5, 2020
Distinguished Speakers
The following distinguished speakers delivered talks and interacted
with the ofcers of IBBI:
Date Distinguished Speaker Topic
31-01-20 Hon'ble Mr. V. P. Singh, Member (Technical), NCLAT My Brush with IBC
05-02-20 Hon’ble Mr. B. S. V. Prakash Kumar, Member (Judicial) & Adjudication Orders
Acting President, NCLT
06-02-20 Hon’ble Mr. Ashok Kumar Mishra, IBC
Member (Technical), NCLAT
20-02-20 Dr. Arghya Sengupta, Research Director, Lions on the Throne: The
Vidhi Centre for Legal Policy Supreme Court of India and
Judicial Independence
Talk by Dr. Arghya Sengupta, February 20, 2020
Legal And Regulatory

Framework
Measures in the wake of COVID-19 outbreak
In the wake of COVID-19 pandemic across the world, including India, the
Talk by Hon'ble Mr. V. P. Singh, January 31, 2020 Government of India took several measures to help contain the spread of
the disease. It announced a nationwide lockdown for 21 days with effect
from March 25, 2020. The pandemic as well as the measures impacted

the insolvency ecosystem, the stakeholders and the ongoing insolvency professional members. To minimise difculties for the prospective IPs, it
proceedings. This disrupted business operations, particularly of MSMEs, was advised that pre-registration educational courses completed online
which may push some of them to default in servicing debt obligations. would be accepted for registration.
Several measures were taken in the insolvency space to ameliorate their Advisory to RVOs
hardships. They are listed below:
Having regard to the difculties the RVOs may encounter to deliver
Central Government educational courses and continuing professional education through
Threshold for triggering CIRP classroom sessions, IBBI issued an advisory encouraging RVOs to deliver
With the intent to prevent MSMEs from being pushed into insolvency for educational courses and continuing education online for their professional
their inability to meet their repayment obligations due to business members. Further, to minimise difculties for the registered valuers and
disruptions, the Government, vide notication dated March 24, 2020, valuer members, it advised that such courses completed online, and
increased the threshold amount of default required to initiate an continuing education undertaken online shall be considered valid.
insolvency proceeding from `1 lakh to `1 crore. Suspension of Examinations
Intention to suspend certain provisions IBBI suspended enrolment for the Limited Insolvency Examination and
Vide a press release dated March 24, 2020, the Government expressed the Valuation Examinations from March 21, 2020 till April 14, 2020. It
intention to suspend sections 7, 9 and 10 of the Code, which enable ling allowed the candidates option to reschedule their enrolments.
applications to initiate insolvency, for six months, to stop companies from Amendments to CIRP regulations
being pushed into insolvency proceedings in such force majeure causes of IBBI amended the CIRP Regulations, vide notication dated March 25,
default if the current situation continues beyond April 30, 2020. 2020, extending the date for ling Forms after due date of submission,
Courts/Tribunals whether by correction, updation or otherwise, till September 30, 2020.
NCLT on Closure of Filing Such submission after September 30, will require a fee of `500.
Vide notice dated March 19, 2020, NCLT closed ling counters till March Further, IBBI took cognisance of the difculties for the IPs to continue to
27, 2020. Vide further notice dated March 22, 2020, it closed till March conduct the process, for members of CoC to attend the meetings, and for
31, 2020 except for unavoidable urgent matters. It claried that extension prospective resolution applicants to prepare and submit resolution plans,
of time, approval of resolution plan and liquidation under the Code would during the period of lockdown. Therefore, it may be difcult to complete
not be construed as urgent matters. various activities during a CIRP within the timelines specied in the CIRP
Regulations. To address the difculty, IBBI amended the CIRP Regulations,
Supreme Court on Extension of Limitation
vide notication dated March 29, 2020, to provide that the period of
Vide its order dated March 23, 2020, the Supreme Court took suo motu lockdown imposed by the Central Government in the wake of COVID-19
cognizance of the challenge faced by the country on account of COVID- outbreak shall not be counted for the purposes of the time-line for any
19 disease and resultant difculties litigants are facing in ling their activity that could not be completed due to the lockdown, in relation to a
petitions/applications/suits/ appeals/all other proceedings within the CIRP, subject to the overall time-limit provided in the Code.
period of limitation. In exercise of its powers under Article 142 read with
Amendments to IP Regulations
Article 141 of the Constitution, it ordered that the period of limitation in
all such proceedings shall stand extended with effect from March 15, Taking note of the fact that IPs and IPEs may nd it difcult to adhere to
2020 till further orders, and declared that the order shall be a binding various timelines stipulated in the IP Regulations in the wake of COVID -
order within the meaning of Article 141 on all Courts/Tribunals and 19, IBBI amended the IP regulations, vide notication dated March 28,
authorities. 2020, extending the last date for payment of fee for the year 2019-20
from April 30, 2020 to June 30, 2020. It also allowed time up to 30 days for
NCLAT on Exclusion of Time
the IPEs to inform the Board about appointment and cessation of its
The NCLAT took suo motu cognizance of the unprecedented situation directors / partners from the date of such appointment or cessation.
arising out of spread of COVID-19 pandemic and the hardships being
Amendments to Model Bye-Laws Regulations
faced by various stakeholders to adhere to the prescribed timelines for
taking the ‘Resolution Process’ to its logical conclusion. In exercise of its IBBI amended the IBBI (Model Bye-Laws and Governing Board of
powers under rule 11 of the National Company Law Appellate Tribunal Insolvency Professional Agencies) Regulations, 2016, vide notication
Rules, 2016, the NCLAT, vide order dated March 30, 2020 decided that dated March 28, 2020, allowing IPAs to issue Authorisation for Assignment
the period of lockdown ordered by the Central Government and the (AFA) within one month from the date of application for the same. It
State Governments, including the period as may be extended either in further relaxed the time for ling an appeal against order of rejection of
whole or part of the country, where the registered ofce of the corporate AFA application within one month from date of receipt of such order.
debtor may be located, shall be excluded for the purpose of counting of Reserve Bank of India
the period for Resolution Process under section 12 of the Code, in all The Reserve Bank of India (RBI) permitted lending institutions to allow a
cases where CIRP has been initiated and pending before any Bench of the moratorium of three months on payment of instalments in respect of all
NCLT or in appeal before NCLAT. It further ordered that any interim term loans outstanding as on March 1, 2020. It also permitted them to
order/ stay order passed by the NCLAT in anyone or the other appeal allow a deferment of three months on payment of interest in respect of
under the Code shall continue till next date of hearing. working capital facilities outstanding as on March 1, 2020.
IBBI
Central Government
Advisory to IPAs
Insolvency and Bankruptcy Code (Amendment) Act, 2020
Having regard to the difculties the IPAs may encounter to deliver pre-
registration educational courses through classroom sessions, IBBI issued The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 was
advisory encouraging IPAs to deliver such courses online for their introduced in the Lok Sabha on December 12, 2019. It was referred to

the Standing Committee on Finance (SCF) on December 23, 2019 for Government of India, to study and analyse the recommendations of
examination and report thereon. Pending examination by the SCF, the Insolvency Law Committee on cross border insolvency and the proposed
Government promulgated the Insolvency and Bankruptcy Code draft Bill and also to recommend rules and regulatory framework for
(Amendment) Ordinance, 2019 on December 28, 2019. The SCF smooth implementation of the proposed cross border insolvency
submitted its report on March 4, 2020. After considering the report, the provisions in the Code. Vide another order dated February 21, 2020, the
Parliament enacted the Insolvency and Bankruptcy Code (Amendment) remit of the Committee was expanded to study and analyse the
Act, 2020, which replaced the Insolvency and Bankruptcy Code UNCITRAL Model Law for enterprise group insolvency and make its
(Amendment) Ordinance, 2019. recommendations in the context of the Code.
Report of the Standing Committee on Finance Third-party assets
While endorsing the Insolvency and Bankruptcy Code (Amendment) Bill, The Central Government, in consultation with the RBI, notied on
2019, the SCF recommended deletion of clause 5(b), that mandates January 30, 2020 the manner of dealing with the third-party assets in
supply of critical services to a CD under CIRP. It recommended that custody or possession of nancial service providers (FSPs) undergoing
market forces should resolve whether a supplier decides to supply to a CIRP. It specied that where an FSP is contractually obliged, as on the
CD, as there are limited resources available and each supplier has a insolvency commencement date (ICD), to act as a servicing or collection
limited capacity, which needs to be channelised and allocated in the best agent on behalf of third parties in respect of a transaction such as
interest of the economy and not directed solely towards keeping the CD securitisation or lending arrangement, the Administrator shall ensure that
alive. It believed that over-legislation through the Bill must be avoided and the receivables are collected and transferred in accordance with the
the process of delegated legislation through formulation of rules by IBBI terms and conditions of such contract. Further, where the FSP has, as on
be followed to strike a harmonious balance between the needs and the ICD, in its custody or possession assets owned by its customers or
concerns of stakeholders in question, namely, the CD, IRP trying to revive counterparties under a contract, and is under an obligation to return or
the CD and the supplier of critical/essential goods. In this context, the SCF transfer such assets, the Administrator shall return or transfer such assets
emphasised that payments due to MSMEs, who are OCs and not part of to the person entitled to receive it in accordance with the terms and
the CoC, should be ensured on priority in the course of the resolution conditions of such contract.
process itself, before the liquidation stage commences. Filings on MCA-21
Further, the SCF observed as under: Vide circular dated February 17, 2020, MCA specied the procedure for
“Nonetheless, a much more strategic approach to strengthening the IRPs/RPs/liquidators conducting CIRP and liquidations under the Code to
insolvency framework is required. Developing such a strategic approach le documents, disclosures and returns for the purposes of compliance
requires detailed analysis along three dimensions. First, empirical evidence under the Companies Act, 2013 on the MCA-21 portal. In supersession of
should be collected on the performance of the insolvency framework to date. the said circular, MCA, vide circular dated March 6, 2020, claried that
This should include inter alia cases admitted across various benches, cases by IRP/RP/Liquidator shall be responsible for ling all eforms on the MCA
industry/sector, experiences of various stakeholders, time for resolution, type portal and sign the forms in the capacity of CEO. It further claried that
of resolution, eventual recovery by resolution type, and impact on the concerned IRP/RP/Liquidator of every company which was under
employment and other output indicators. This empirical evidence should be CIRP prior to the issue of this circular, shall also le the eforms.
updated every quarter and published in the public domain. Second, the Indian Government amended the Companies (Registration Ofces and Fees)
insolvency framework should now be carefully benchmarked against other Rules, 2014 on March 12, 2020 to enable lings under the Code.
jurisdictions to evaluate outcomes and assess resolution efciency against NCLAT Bench at Chennai
competitor nations. Empirical evidence and benchmarking analysis should
MCA constituted a Bench of the NCLAT at Chennai, vide notication
identify which major gaps still need to be addressed and the extent to which
dated March 18, 2020 to hear appeals against the orders of the benches of
Indian case law needs to be further rened. Finally, the interdependent roles of
the NCLT having jurisdiction of Karnataka, Tamil Nadu, Kerala, Andhra
legislation, rule-making, adjudication, and informal norms need to be
Pradesh, Telangana, Lakshadweep and Puducherry.
evaluated to close these identied gaps. The Committee notes that there is
considerable ambiguity on which policy lever is most appropriate to address Payment of CGST
which issue. Further legislation needs to be informed by such comprehensive Vide notication dated March 21, 2020, the Central Government
analysis. Accordingly, the Committee intends to conduct further hearings on provided that an IRP/IP shall, with effect from the date of appointment of
this matter so that a more strategic approach can be evolved to strengthen IRP / RP, be treated as a distinct person of the CD, and shall be liable to
the insolvency framework for India.”. take a new registration under the Central Goods and Services Tax Act,
Extension of the Code to the whole of India 2017 in each of the States or Union territories where the CD was
registered earlier, within 30 days of the appointment. He can thereafter
The Jammu and Kashmir Reorganisation (Adaptation of Central Laws)
pay current levies of GST without the mandatory payment of past dues.
Order, 2020 dated March 18, 2020, omitted the proviso to sub-section
(2) of section 1 of the Code, extending it to the whole of India. Economic Survey, 2019-20
Interim nance The Economic Survey of the Government of India for 2019-20 (Chapter 4
of Volume II), presented to the Parliament on January 30, 2020, noted the
Vide notication dated March 18, 2020, the MCA notied that a debt
commendable progress made under the Code since its enactment, in
raised from the “Special Window for Affordable and Middle-Income
terms of its use by stakeholders and the development of an ecosystem of
Housing Investment Fund I” shall be considered as interim nance under
service providers. The realisations under the Code for FCs and time
clause (15) of section 5 of the Code.
taken for the same were noted as being better than those under other
Committee on Cross Border Insolvency available avenues for resolving distressed assets in the country. Further, it
The MCA, vide an order dated January 23, 2020, constituted a committee noted that the Goods and Services Tax and the Code top the list of
under chairpersonship of Dr. K. P. Krishnan, former Secretary to the reforms that have propelled India’s rise in rankings in the World Bank’s

Doing Business Report for the year 2020 (Chapter 6 of Volume I). CoC to le applications in case the IP fails to do so.
Report of Insolvency Law Committee (iii) The AA should decide whether the recoveries that vest with the CD
The ILC submitted its 3rd Report on February 20, 2020. Some of the key should be applied for the benet of the creditors of the CD, the successful
recommendations of the ILC are as under: resolution applicant or other stakeholders.
(a) CIRP (d) Fresh Start Process
(i) The threshold amount of default for initiating CIRP should be enhanced (i) It may be appropriate to designate IBBI as the supervising authority for
from `1 lakh to `50 lakh. However, the OCs should be allowed to have the fresh start process. Dedicated ofcers should be appointed to
recourse to CIRP on a minimum default of `5 lakh. discharge the functions in relation to supervision of the fresh start
process.
(ii) For a class of creditors under section 21(6A), the CIRP should be
initiated by at least 100 creditors or 10 per cent of total number of (ii) A cadre of insolvency advisers should be created with presence up to
creditors in the class. district level across the country.
(iii) The provision relating to moratorium should explicitly prohibit (iii) An insolvency advisor should le an application for the fresh start
termination or suspension of grants, licenses, permits and quotas, process (FSP) on behalf of a debtor. He would inform the debtor about
concessions, registrations, or other rights, during the moratorium period, the implications and effects of undertaking the FSP. He should verify if the
subject to the CD continue to be liable for dues arising out of continued debtor meets the eligibility criteria for the FSP and has adequate
use of such grants, etc. However, termination or suspension of such documentation to establish so.
grants on account of non-insolvency reasons would not be barred by the (iv) The debtors should be able to access the FSP effortlessly. This should
moratorium. be conducted on a digital platform.
(iv) Supplies that are critical to running the CD as a going concern and (v) Government may consider installing booths in various districts where
would contribute to the preservation of the CD’s value and success of the debtors can receive aid and assistance for electronically ling a fresh start
resolution plan should not be terminated, suspended or interrupted, application.
except in certain specic circumstances. The supplies that would be (e) Personal Insolvency
considered critical should be identied by the RP, who is entrusted with
(i) Filing of avoidance actions should be permitted during both the
the responsibility of running the CD as a going concern. The suppliers of
individual insolvency and bankruptcy processes.
such supplies should be paid during the moratorium period on an on-
going basis, on the same terms as those that existed pre-insolvency or on a (ii) Regulatory authorities under the Code may undertake steps to
reasonable commercial basis. develop infrastructure that aid debtors in effectively utilizing mechanisms
such as debt settlement, mediation, and debt counselling. Further, efforts
(v) Where the CD is successfully resolved, it should not be held liable for
should be made at making debtors aware of various options available to
any offence committed prior to commencement of the CIRP. However,
them to resolve their over-indebtedness through both formal and
the persons, who were responsible to the CD for conduct of its business
informal mechanisms, by undertaking awareness campaigns and advocacy
at the time of commission of such offence, should continue to be liable for
measures.
such an offence.
Companies (Audit Report) Order, 2020
(vi) The property of a CD, when taken over by a successful resolution
applicant, or when sold to a bona de bidder in liquidation under the In supersession of the Companies (Auditor’s Report) Order, 2016, the
Code, should be protected from enforcement action. However, this Central Government notied the Companies (Auditor’s Report) Order,
protection of the CD’s assets should in no way prevent the relevant 2020 (CARO, 2020) on February 25, 2020 in pursuance of its objective of
investigating authorities from taking action against the property of strengthening the corporate governance framework under the
persons in the erstwhile management of the CD, that may have been Companies Act, 2013. The CARO, 2020 is applicable for audit of nancial
involved in the commission of the criminal offence. statements of eligible companies for the nancial years commencing on or
after April 1, 2019. It requires that the report of the auditor shall state
(b) Liquidation Process
whether the company has defaulted in repayment of loans or other
(i) The leave of the AA should be required for continuing any suit or legal borrowings or in the payment of interest thereon to any lender, and if so,
proceeding by or against a CD undergoing liquidation. provide the details of such default.
(ii) The Code should enable appointment of the Ofcial Liquidator for the
liquidation of a CD, which has a minimum value, as prescribed by the
Central Government, and whose liquidation involves public interest, to
IBBI
carry out the functions of the liquidator. The ofce of the Ofcial Liquidation Process Regulations
Liquidator should be subject to regulation and supervision of IBBI. IBBI amended the IBBI (Liquidation Process) Regulations, 2016 on January
(iii) The recourse to section 30 of the Companies Act, 2013 for effecting 6, 2020 to provide for the following:
schemes of arrangement or compromise should not be available during (a) The amendment claries that a person, who is not eligible under the
liquidation of the CD. An appropriate process to allow the liquidator to Code to submit a resolution plan for insolvency resolution of the CD, shall
effect a compromise or settlement with specic creditors should be not be a party in any manner to a compromise or arrangement of the CD
devised under the Code. under section 230 of the Companies Act, 2013. It also claries that a
(c) Avoidance Transactions secured creditor cannot sell or transfer an asset, which is subject to security
interest, to any person, who is not eligible under the Code to submit a
(i) The Code should explicitly provide that the resolution professional will
resolution plan for insolvency resolution of the CD.
be responsible for investigating the affairs of the CD for transactions
falling within sections 43, 45, 49, 50 or 66. (b) A secured creditor, who proceeds to realise its security interest, shall
contribute its share of the insolvency resolution process cost, liquidation
(ii) The Code should enable creditors (individual or in groups) and the

process cost and workmen’s dues, within 90 days of the liquidation Corporate Liquidation Account
commencement date. It shall also pay excess of realised value of the asset, The Liquidation Regulations require IBBI to maintain and operate an
which is subject to security interest, over the amount of its claims Account to be called the Corporate Liquidation Account in the Public
admitted, within 180 days of the liquidation commencement date. Where Accounts of India. It further provides that until the Corporate Liquidation
the secured creditor fails to pay such amounts to the liquidator within 90 Account is operated as part of the Public Accounts of India, IBBI shall open
days or 180 days, as the case may be, the asset shall become part of a separate bank account with a scheduled bank for deposit of the amount
Liquidation Estate. of unclaimed dividends, if any, and undistributed proceeds, if any, in a
(c) A liquidator shall deposit the amount of unclaimed dividends, if any, liquidation process. For this purpose, IBBI opened two separate bank
and undistributed proceeds, if any, in a liquidation process along with any accounts (one for Liquidation Process and the other for Voluntary
income earned thereon into the Corporate Liquidation Account before Liquidation Process) with PNB, and informed the details vide circular
he submits an application for dissolution of the CD. It also provides a dated January 6, 2020.
process for a stakeholder to seek withdrawal from the Corporate Mr. Amit Sharma, Liquidator of M/s. Tirupati Ceramics Ltd., handed over
Liquidation Account. a cheque of `4,54,84,145/- to Dr. M. S. Sahoo, Chairperson, IBBI towards
Voluntary Liquidation Process Regulations unclaimed dividends/undistributed proceeds on January 10, 2020 for
IBBI amended the IBBI (Voluntary Liquidation Process) Regulations, 2017 deposit in the Corporate Liquidation Account.
on January 15, 2020 to provide that the liquidator shall deposit the
amount of unclaimed dividends, if any, and undistributed proceeds, if any,
in a liquidation process along with any income earned thereon into the
Corporate Voluntary Liquidation Account before he submits an
application for dissolution of the corporate person. It also provides a
process for a stakeholder to seek withdrawal from the Corporate
Voluntary Liquidation Account.
CIRP Regulations
The CIRP Regulations provided that ling of a Form after due date of
submission, whether by correction, updation or otherwise, shall be
accompanied by a fee of ve hundred rupees per Form for each calendar
month of delay after January 1, 2020. IBBI amended the Regulations on
February 12, 2020 extending the date to April 1, 2020 for levy of fee. The
Regulations were further amended on March 25, 2020, extending the Mr. Amit Sharma handing over a cheque for `4.55 crore for deposit
date till September 30, 2020. in the Corporate Liquidation Account, January 10, 2020
Guidelines for Technical Standards
IBBI modied the IBBI (Information Utilities) Regulations, 2017 (IU
Regulations) on January 22, 2020, based on recommendations of the
technical committee, giving the submitter an option of providing ofcially
Orders
valid documents such as passport, driving license, Permanent Account Supreme Court
Number, Voter’s Identity Card issued by Election Commission of India,
Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited
and Aadhaar letter/card or the e-Aadhaar (an electronically generated
Vs. Axis Bank Limited Etc. Etc. [Civil Appeal Nos. 8512-8527/2019 &
letter from the website of UIDAI).
other appeals]
Transfer of Membership
In this matter, the CD, JIL had mortgaged its properties as collateral securities
The Companies (Registered Valuers and Valuation) Rules, 2017, inter-alia, for the loans and advances made by the banks and FIs to its holding company,
envisage that a member of an RVO may shift membership from one RVO JAL. The AA held these as avoidance transactions (preferential, undervalued
to another, subject to prior permission of the Authority, i.e. the IBBI, for and fraudulent), which was set aside by the NCLAT. In appeal, the Supreme
the same. The Rules require an RVO to employ fair, reasonable, just and Court (SC) held as under:
non-discriminatory practices for enrolment and regulation of its (a) Preferential Transactions: A CD shall be deemed to have given a
members. It was, however, noted that a few RVOs were restricting preference at a relevant time if: (i) there is a transfer of property or the
transfer of membership by using dilatory tactics, charging unreasonable interest thereof of the CD for the benet of a creditor or surety or guarantor
transfer fee, etc. IBBI, vide circular dated January 28, 2020, outlined the for or on account of an antecedent nancial debt or operational debt or other
process of transfer of membership from one RVO to another. liability; (ii) such transfer has the effect of putting such creditor or surety or
Administrators Guidelines guarantor in a benecial position than it would have been in the event of
distribution of assets in accordance with section 53; and (iii) preference is
IBBI issued the Guidelines for Appointment of Insolvency Professionals as
given, either during the period of two years/one year preceding the ICD when
Administrators under the Securities and Exchange Board of India
the beneciary is a related/an unrelated party. However, such deemed
(Appointment of Administrator and Procedure for Refunding to the preference may not be an offending preference, if it falls into any or both
Investors) Regulations, 2018, prepared in consultation with SEBI on exclusions provided by section 43(3). Applying this ratio to the impugned
February 27, 2020 to govern the preparation of a Panel of IPs for transactions, the SC held that there had been transfers for the benet of JAL,
appointment as Administrators. The Panel is valid for a period of six who is a related party of the CD; and the transactions have the effect of putting
months and a new Panel will replace the earlier one every six months. JAL in a benecial position than it would have been in the event of distribution
Accordingly, IBBI prepared the panel of IPs for April 2020 - September of assets being made in accordance with section 53. Thus, the CD has given a
2020 and shared the same with SEBI. preference in the manner laid down in the Code.

(b) Look back period: It was submitted that the provisions of section 43, by CD's business when there is nancial stress. Hence, an FC is not only about in
their very nature, would come into operation at least one year after the terrorem clauses for repayment of dues; it has the unique parental and nursing
enactment of the Code and else, it would be giving retrospective effect to roles too. In short, the FC is the one whose stakes are intrinsically inter-woven
these provisions which is not permissible. The SC observed that looking to the with the well-being of the CD. To be termed nancial debt, consideration for
scheme of the Code and the principles applicable for the conduct of the affairs time value of money is essential. Mortgages, being neither towards any loan,
of a corporate person, it cannot be said that anything of a new liability has been facility or advance to the CD nor towards protecting any facility or security of
imposed or a new right has been created. It cannot be said that the operation the CD, do not constitute nancial debt within the meaning of section 5(8),
of the provision itself would remain in hibernation until such look-back period though they could be, on the strength of the mortgages, secured creditors.
from the date of commencement of the provision comes to an end. Maharashtra Seamless Limited Vs. Padmanabhan Venkatesh & Ors.
( c) Ordinary course of business: Section 43(3)(a) exempts transfers made in [Civil Appeal No. 4242/2019 & Ors.]
ordinary course of business of 'the corporate debtor or the transferee'. This Resolution plan providing for an upfront payment of `477 crore was
calls for purposive interpretation. The expression 'or', appearing as disjunctive approved. On an appeal, the NCLAT directed the resolution applicant to
between the expressions 'corporate debtor' and 'transferee', ought to be read modify the plan to increase upfront payment to `598 crore, which is the
as 'and'. Therefore, a preference shall not include the transfer made in the average liquidation value, failing which the resolution plan approval would be
ordinary course of the business of the CD and the transferee. Further, the SC set aside. On appeal, the SC decided: (a) there is no provision in the Code, or
observed that the transactions in question could be in the ordinary course of regulations which prescribe that the bid of any resolution applicant has to
business of bankers but on the given set of facts, these do not fall within the match the liquidation value; (b) the object behind prescribing the valuation
ordinary course of business of the CD. The ordinary course of business of the process is to assist the CoC to take a decision on the resolution plan properly;
CD is not providing mortgages to secure the loans obtained by its holding (c) once the resolution plan has been approved by the CoC, the AA ought to
company and that too at the cost of its own nancial health. cede ground to the commercial wisdom of the creditors rather than assess the
(d) Duties and responsibilities of RP: The RP shall- resolution plan itself; and (d) the exit route prescribed under section 12A is
(i) sift through all transactions relating to the property/interest of the CD not applicable to a successful resolution applicant and is available only to the
backwords from the ICD and up to the preceding two years; applicants initiating CIRP.
(ii) identify persons involved in the transactions and put them in two Rajendra K. Bhutta Vs. Maharashtra Housing and Area Development
categories: (1) related party under section 5(24), and (2) remaining persons; Authority and Another [Civil Appeal No. 12248/2018]
(iii) identify which of the said transactions of preceding two years, the The CD had entered a Joint Development Agreement (JDA) with MHADA.
beneciary is a related party of the CD and in which the beneciary is not a On the CD getting into CIRP, MHADA issued notice to the CD for termination
related party. The sub-set relating to unrelated parties shall be trimmed to of JDA and to handover possession of the land and all structures. An
include only the transactions preceding one year from the ICD; application to restrain MHADA from taking possession was dismissed by the
AA stating that section 14(1)(d) does not cover licences to enter upon land
(iv) examine every transaction in each of these sub-sets to nd out whether
covered under JDA. On appeal, the NCLAT held that the land belongs to
(1) the transaction is of transfer of property of the CD or its interest in it; and
MHADA and cannot be treated as an asset of the CD under section 14(1)(d).
(2) beneciary involved in the transaction stands in the capacity of
While setting aside the order of NCLAT, the SC held that section 14(1)(d)
creditor/surety/guarantor;
speaks about recovery of property "occupied". It does not refer to rights or
(v) scrutinise the shortlisted transactions to nd, if the transfer is for or on interests created in property but only actual physical occupation of the
account of antecedent nancial debt/operational debt/other liability of the CD; property. The JDA has granted a license to the CD to enter upon the property,
(vi) examine the scanned and scrutinised transactions to nd, if the transfer has with a view to do all the things that are mentioned in it and hence the property
the effect of putting such creditor/surety/guarantor in benecial position, than is in possession of the CD. Therefore, the land is covered under section
it would have been in the event of distribution of assets under section 53. If 14(1)(d). It reiterated that if there is any clash between the MHADA Act and
answer is in the afrmative, the transaction shall be deemed to be of the Code, the latter shall prevail.
preferential, provided it does not fall within the exclusion under section 43(3); Beacon Trusteeship Limited Vs. Earthcon Infracon Private Limited &
and then Anr. [Civil Appeal No.(S) 7641/2019]
(vii) apply to the AA for necessary orders, after carrying out the aforesaid The AA admitted an application for CIRP. The NCLAT dismissed an appeal
volumetric and gravimetric analysis of the transactions. against the admission. The appellant approached the SC on the ground that
(e) Undervalued and fraudulent transactions: As the transactions are held as the CIRP was initiated in collusive manner. The SC held that the plea of
preferential, it is not necessary to examine whether these are undervalued collusion could not have been raised for the rst time in the appeal. It
and/or fraudulent. In preferential transaction, the question of intent is not relegated the appellant to the remedy before the AA.
involved and by virtue of legal ction, upon existence of the given ingredients, In Re: Cognizance for Extension of Limitation [Suo Motu Writ Petition
a transaction is deemed to be of giving preference at a relevant time, while (Civil) No (S). 3/2020]
undervalued transaction requires different enquiry under sections 45 and 46
where the AA is required to examine the intent, if such transactions were to The SC took suo motu cognizance of the situation arising out of COVID-19 and
defraud the creditors. The AA needs to examine the aspect of preferential, resultant difculties that may be faced by litigants as to period of limitation
undervalued and fraudulent separately and distinctively. prescribed under general law of limitation or under Special Laws (both
Central and/or State). In exercise of its powers under Articles 141 and 142 of
(f) Lenders of JAL not FCs of JIL: The IRP rejected the claims of two lenders of the Constitution, it ordered extension of period of limitation for all
JAL to be recognised as FCs of the CD on the strength of the mortgage proceedings, from March 15, 2020, until further orders, and also declared that
created by the CD, as collateral security of the debt of its holding company, the order is binding on all courts/tribunals and authorities.
JAL. The AA approved this decision. However, it was set aside by the NCLAT.
The SC observed that it is the FC who lends nance on a term loan or for High Courts
working capital that enables the CD to set up and/or operate its business; and Mr. Ajay Kumar Bishnoi Vs. M/s. Tap Engineering [CRL. OP No.
who has specied repayment schedules with default consequences. An FC is, 34996/2019 & Ors.]
from the very beginning, involved in assessing the viability of the CD who can,
During the pendency of a complaint under section 138 of the Negotiable
and indeed, engage in restructuring of the loan as well as reorganisation of the

Instruments Act, 1881, the CD underwent CIRP, which yielded resolution plan Maharashtra State Electricity Transmission Company Limited Vs. Sri
with change in management and control. The MD of the erstwhile CD sought City Private Limited & Ors. [CA(AT)(Ins) No. 1401/2019]
quashing of the prosecution under section 138 in view of the approval of The appellant had a bulk power transmission agreement with the CD to use
resolution plan. The HC reinforced what has been held in several matters that the transmission network of the appellant for 25 years. It challenged the order
the moratorium under section 14 prohibits proceedings, but such of the AA approving a resolution plan of the CD on the ground that in the plan,
proceedings do not include prosecution. It then considered whether the there was an arbitrary provision amounting to ex-parte termination of said
statutory effect of section 31(1) of the Code is the extinguishment of the agreement. The NCLAT, relying on Essar Steel and section 238 of the Code,
criminal prosecution and answered it in the negative. It observed that the held that the resolution plan which has been approved by the CoC in its
object of the Code is to provide insolvency resolution of CD in a time bound wisdom, cannot be found fault with.
manner and not to provide succor to those who by their misconduct
Sh G Eswara Rao Vs. Stressed Assets Stabilisation Fund & Anr.
contributed to defaults of the CD. No clause in resolution plan can take away
[CA(AT)(Ins) No. 1097/2019]
the power and jurisdiction of the criminal court to conduct and dispose of the
proceedings before it. Where a company gets dissolved during pendency of The appellant challenged the order dated October 1, 2019 of admission as the
prosecution, the directors and the other accused cannot escape by citing its debt was barred by limitation. The AA, taking into consideration that the DRT,
dissolution. What is dissolved is only the company, not the personal penal by order dated August 17, 2018, had passed a decree for recovery of debt,
liability of the accused. held that the application for initiation of CIRP is not barred by limitation. The
Tata Steel BSL Limited & Anr. Vs. Union of India & Anr. [W.P.(CRL) NCLAT set aside the order of the AA and observed that CD failed to pay the
3037/2019] debt prior to 2004 which caused the application before the DRT. An decree
passed by DRT or any suit is not an acknowledgement of debt and hence
The trial Court took cognizance of the offences punishable under the cannot shift the date of default. The limitation for initiation of CIRP runs from
Companies Act, 2013 and the Indian Penal Code, 1860, based on a complaint the date of default.
led by SFIO. The petitioner has submitted that it took over the CD through a
resolution plan and section 32A of the Code discharges it from the proceeding Flat Buyers Association Winter Hills-77, Gurgaon Vs. Umang Realtech
before the trial Court. The HC held that the CD would not be liable for any Pvt. Ltd. through IRP & Ors. [CA(AT)(Ins) No. 926/2019]
offence committed prior to commencement of the CIRP. It also claried that The NCLAT held that CIRP against a real estate CD is project specic. It is
this order will not affect the prosecution of the erstwhile promoters or any of limited to a project as per the plan approved by the competent authority and
the ofcers who may be directly responsible for committing the offences. does not cover other projects which are separate at other places for which
Kotak Investment Advisors Limited & Anr. Vs. Mr. Krishna Chamadia separate plans have been approved. The NCLAT noted peculiar nature of real
& Ors. [WP (L) No. 3621/2019] estate projects from the perspective of CIRP that: (a) FCs (Banks/ Financial
Institutions/ NBFCs) would not like to take the ats in lieu of the money
The petitioners challenged the process adopted by RP for approval of
disbursed by them; (b) FCs (allottees) cannot take a haircut of ats, and (c) the
resolution plan. The AA dismissed the challenge, against which they
allottees do not have expertise to assess 'viability' or 'feasibility' of a CD or
approached the HC. The HC held that it would be highly unsafe to entertain
commercial wisdom as other FCs. Relying on the observations of the SC in
the petition, all the more when the petitioners have an alternate efcacious
Essar Steel, about experimentation in economic matters, the NCLAT
remedy of ling an appeal against the impugned order under sections 32 and
experimented as to whether during the CIRP, the resolution can reach nality
61 of the Code. In the appeal, they can always raise all grounds, including that
without approval of the third-party resolution plan. It opined that a 'Reverse
are raised in the present petition. Any interference in the process by way of
CIRP' can be utilised in cases of real estate infrastructure companies in the
writ jurisdiction would amount to scuttling an elaborate process of resolution
interest of allottees and to ensure their survival and completion of the
of disputes arising during the course of applicability of the Code. The Code
projects. It directed one of the promoters to disburse amount from outside as
must be allowed to operate and run its full course. Merely because in
lender and the AA will complete the CIRP.
exceptional cases, the HC can intervene in writ jurisdiction does not mean
that it is obliged to intervene in each and every order. Liberty House Group Pte. Ltd. Vs. State Bank of India & Ors.
[CA(AT)(Ins) No. 724/2019]
National Company Law Appellate Tribunal The AA approved resolution plans submitted by the appellant in the CIRPs of
Bijay Kumar Agarwal, Ex-Director of M/s Genegrow Commercial Pvt. two CDs, namely, Adhunik Metaliks Limited and Zion Steel Limited. As
Ltd. Vs. State Bank of India & Anr. [CA(AT)(Ins) No. 993/2019] appellant failed to implement resolution plans, the AA cancelled the resolution
The NCLAT considered whether an FC can commence CIRP against the plans and passed orders of liquidation of CDs with direction to the Liquidator
principal debtor as well as the guarantor, for the same set of claims. It observed to liquidate the CD as a going concern. While appeal in the matter was
that there is no fetter in the Code for projecting simultaneously two applications pending, the appellant led an afdavit to allow it to comply with the
under section 7 against the principal borrower, as well as the corporate resolution plans and to set aside the orders of liquidation of both the CDs.
guarantor(s). However, for the same set of claims, if an application led by the Noting that the appellant has implemented both the resolution plans, the
FC is admitted against either the principal borrower or the corporate guarantor, NCLAT by order set aside liquidation. It directed that the said order be served
a second application led by the same FC for the same set of claims cannot be on IBBI to withdraw complaints, if any, made before the Special Judge.
admitted against the other. It claried that a creditor cannot sue the principal
Punjab National Bank Vs. Mr. Kiran Shah, Liquidator of ORG
borrower and claim the guarantor's insolvency at the same time.
Informatics Ltd. [CA(AT)(Ins) No. 102/2020]
Santosh Wasantrao Walokar Vs. Vijay Kumar V. Iyer and Anr.
The lead bank in the CoC challenged the appointment of the liquidator after
[CA(AT)(Ins) No. 871-872/2019]
the AA passed the liquidation order. The NCLAT held that after the liquidation
One of the issues was whether the claims that are not dealt with under the order, the CoC has no role to play and that they are simply claimants, whose
resolution plan can be extinguished under the Code. The NCLAT, relying on matters are to be determined by the liquidator and hence cannot move an
the Essar Steel judgment of SC, held that all claims must be submitted to and
application for his removal.
decided by the RP, so that a prospective resolution applicant knows exactly
who has to be paid, for it to take over and run the business of the CD. Committee of Creditors, M/s. Smartec Build Systems Pvt. Ltd. Vs. B.
Therefore, claims that are not submitted or are not accepted or dealt with by Santosh Babu & Ors. [CA(AT)(Ins) No. 48/2020]
the RP and such resolution plan submitted by the RP is approved, then, those Based on the recommendations of CoC, the AA passed the liquidation order
claims would stand extinguished. and directed the CoC to pay the fees and cost incurred by the IRP.

The appellant has submitted that the fees and costs of the IRP is to be borne by Code (Amendment) Ordinance, 2019 (Ordinance) was promulgated on
the Applicant who led application under section 9. The NCLAT rejected this December 28, 2019, which inserted section 32A in the Code. The NCLAT
submission as the OC, who moved application, may not receive any amount observed that section 32A suggests that the ED/other investigating agencies
during liquidation. It also imposed a cost of `1,00,000 on the CoC for ling do not have the powers to attach assets of the CD, once a resolution plan
frivolous application. stands approved and the criminal investigations against the CD stand abated. It
Shameek Breweries Pvt. Ltd. Vs. Manoj Kumar Agarwal & Anr. further observed that it is ex facie evident that being claricatory in nature, the
[CA(AT)(Ins) No. 843/2019] Ordinance must be made applicable retrospectively. It held that the intent and
purpose of section 32A is to provide certainty to the resolution applicant that
In the CIRP against 'Sterling SEZ & Infrastructure Ltd.', the promoters moved
the assets of the CD, as represented to him, and for which he proposes to pay
application under section 12A. The CoC approved the proposal and withdrawal
value/ consideration in terms of the resolution plan, would be available to him
was allowed by the AA. MCA moved an application that the promoters were
in the same manner as at the time of submission of the resolution plan. It
absconding, and the ED had initiated proceedings against them. The AA recalled
observed that mere assertion of the ED in its reply, that it needs to further
its earlier order and restored the CIRP of CD. One of the FCs appealed the
investigate the matter to examine or comment if there has been any abetment
NCLAT against the recall order with a prayer to direct the promoters, to or conspiracy by the Appellant, establishes that it has no reason to believe on
provide clean money as per the terms of withdrawal. The NCLAT dismissed the the basis of material in its possession, as on date, for denial of immunity to the
appeal as promoters are not aggrieved by the recall order. Appellant and the CD. It reiterated the position held by SC that the successful
Navin Raheja Vs. Shilpa Jain & Ors. [CA(AT)(Ins) No. 864/2019] resolution applicant cannot be asked to face with undecided claims after the
Pursuant to an application by two allottees in a residential project, the AA resolution plan accepted by the CoC as this would amount to a hydra head
ordered CIRP of the CD. The order was appealed alleging fraudulent and popping up which would throw into uncertainty amounts payable by a
malicious initiation of CIRP with a purpose other than resolution. The NCLAT prospective resolution applicant.
noted that despite offer of at, the two allottees wanted refund of the amount Hammond Power Solutions Private Limited Vs. Mr. Sanjit Kumar
with more interest and refused to take the actual amount in terms of Nayak & Ors. [CA(AT)(Ins) No. 606/2019]
agreement. It set aside the order of the AA with an observation that the An OC challenged the approved resolution plan providing for payment of nil
allottees led application for CIRP fraudulently with malicious intent and are amount to OCs. The NCLAT, relying on the Essar Steel, observed that the
liable to penalty under section 65 of the Code. It further observed that decision of the CoC must reect the fact that it has taken into account
considering such fraudulent applications by some allottees, the recently maximising the value of the assets of the CD and the fact that it has adequately
promulgated Ordinance requires the application to be led jointly by a not less balanced the interests of stakeholders including OCs. It noted that minutes of
than one hundred of such creditors in the same class or not less than ten per
the CoC do not reect any reason for giving nil amount to OCs. It remitted the
cent of the total number of such creditors in the same class, whichever is less.
matter back to the AA to send the resolution plan to CoC to resubmit the plan
Reliance India Power Fund, Reliance Capital Vs. Mr. Raj Kumar Ralhan after satisfying the parameters laid down by the SC.
[CA(AT)(Ins) No. 318/2020]
Punjab National Bank Vs. State Bank of India & Anr. [CA(AT)(Ins) No.
The appellant submitted that in terms of section 35(1)(k), it is the duty of the 1484/2019]
liquidator to defend any suit, prosecution or other legal proceedings against
The appellant claims that the CD had pledged stock of rice by a document of
the CD. While agreeing with the submission, the NCLAT held that the said
pledge dated September 29, 2015. The respondent claims that the CD had
duty includes any conscious decision that a liquidator may take whether, in the
hypothecated the stock in its favour by a deed of hypothecation dated May 4,
given set of facts, he needs to defend any proceedings.
2013. The CoC, which comprised appellant and respondent, decided to sell
Committee of Creditors of Metalyst Forging Ltd. Through State Bank the stock, being a perishable commodity. The appellant objected that the RP
of India Vs. Deccan Value Investors LP & Ors. [CA(AT)(Ins) No. cannot utilize the sale proceeds for conducting CIRP. The NCLAT held that the
1276/2019] stock having been sold, there is no illegality if the RP uses the money for CIRP
After approval by CoC, a resolution plan was placed for approval of the AA. but rights and benets accruing to the appellant for possessing security by way
The resolution applicant, however, on demand of performance guarantee, of pledge are open for consideration of the CoC when the resolution plan is
wanted to withdraw the resolution plan. The AA refused to approve the plan put forth, and/or in case of liquidation.
and directed the RP/CoC to invite fresh bids. It held that the resolution D & I Taxcon Services Private Limited Vs. Mr. Vinod Kumar Kothari
applicant will not be entitled to refund of the amount of the bid bond [CA(AT)(Ins) No. 1347/ 2019]
guarantee in case fresh bid of the resolution applicant is not accepted. The
CoC challenged the order of rejection of resolution plan. The resolution The AA dismissed an application challenging the actions of liquidator and
applicant also challenged the forfeiture of bid bond guarantee. The NCLAT imposed a cost of `100,000 on the appellant for levelling vague and baseless
held that that the Code does not confer any power and jurisdiction on the AA allegations against the respondent. The NCLAT observed that without having a
to compel specic performance of a plan by an unwilling resolution applicant. locus, the appellant has been interfering with the process of liquidation and
It, however, did not interfere with the forfeiture of the bid bond furnished by thwarting the liquidation process which ultimately will have deleterious effect
the resolution applicant. on the rights of those who are entitled to the benet of the distribution of sale
Shyam Pradhan & Anr. Vs. Ananda Chandra Swain [CA(AT)(Ins) proceeds of liquidation proceedings. It dismissed the appeal but dispensed with
No.15/2020] the cost having regard to the fact that the appellant is a victim of incident of re.
The appellant, who had insured the CD, wanted to terminate insurance. The Union of India Vs. Infrastructure Leasing & Financial Services Ltd. &
AA directed the insurer to continue with the insurance as the CD is to Ors. [CA(AT)(Ins) No. 346/2018 & Ors.]
continue as a going concern. The NCLAT upheld the direction of the AA. The Central Government approached the AA for appropriate orders against
JSW Steel Ltd. Vs. Mahender Kumar Khandelwal & Ors. [CA(AT)(Ins) Infrastructure Leasing and Financial Services Limited (IL&FS) and its group
No. 957/2019 & Ors.] companies for mismanagement. The AA changed the management but
The NCLAT considered whether after approval of a resolution plan by the AA, refused to grant moratorium on the ground that the provisions of the Code
it is open to the Directorate of Enforcement (ED) to attach the assets of the does not apply to IL&FS, a nancial service provider, and also refused to give
CD on the alleged ground of money laundering by erstwhile promoters. any interim orders under section 242 of the Companies Act, 2013. On appeal,
During the pendency of the proceedings, the Insolvency and Bankruptcy the NCLAT granted stay of institution or continuation of suits or any other

proceedings, any action under SARFAESI and other reliefs, and effectively a Bimalkumar Manubhai Savalia Vs. Bank of India and Anr.
moratorium was imposed. It held that section 242(4) of the Act empowers the [CA(AT)(Ins) No. 1166/2019]
NCLT to pass just and equitable interim orders. Further, it is not correct to say CIRP initiated on an application of an FC was challenged by the appellant for
that principles of the Code cannot be followed by the NCLT while dealing being time barred. It was contended that under an OTS, payments were made
with a winding up matter under section 241 read with section 242 of the Act. It by the guarantors, which had the effect of extending the period of limitation.
observed that moratorium under section 14 of the Code may be imposed The FC had also initiated proceedings under SARFAESI, before initiating CIRP
under section 242(4) of the Act by an interim order if the tribunal deems t. It and claimed that the same would increase the period of limitation. While
also held that distribution under section 53 will not be followed as it would be allowing the appeal, the NCLAT held that SARFAESI and DRT proceeding will
against the public interest, as the shareholders had purchased shares by not extend the period of limitation since those proceedings are independent
investing public money and accepted pro-rata distribution proposed by the and that the Code has overriding effect under section 238. Further, since the
Central Government. OTS was not accepted by the FC, it cannot be treated as an acknowledgement
Shri IRK Raju Vs. Immaneni Eswara Rao & Ors. [CA(AT)(Ins) No. under section 18 of the Limitation Act, 1963.
1058/2019] Vijay Pal Garg & Ors. Vs. Pooja Bahry [CA(AT)(Ins) No. 949/2019]
The appellant challenged the admission of application under section 9 on the Appeal was led against the order of AA, which directed the Central
ground that debt claimed was not payable and the application was led Government to order an investigation into the affairs of the CD. The NCLAT
fraudulently for extracting money and not for resolution/liquidation. The observed that the AA is not empowered to order an investigation directly to
NCLAT allowed the appeal and observed that demand notice was not as per be carried out by the Central Government. The AA (Tribunal) as competent
section 8(1) of the Code, which allows for 15 days' time to repay. It also held authority under section 213 of the Companies Act, 2013 has an option to issue
that the second respondent does not come within the meaning of OC for notice as to charges/allegations levelled after following the due procedure
claiming reimbursement of customs duty, as a statutory due is only operational enshrined under section 213 of the Companies Act, 2013. Where a prima facie
in nature when it is paid to the relevant authority and not when it is repaid to a case is made out, the AA may refer the matter to the Central Government for
party that has paid to such statutory authority. It observed that the respondent investigation by an inspector, based on which, if any action is required, the
moved an application under section 9 fraudulently with malicious intent for Government, through the SFIO, may proceed in accordance with law. If an
extracting more amount, not for the liquidation or resolution, as covered by investigating authority after completion of investigation comes to a conclusion
Section 65 and as such calls for penal action. that any offence punishable in terms of section 213 read with 447 of
Radhika Mehra Vs. Vaayu Infrastructure LLP & Ors. [CA(AT)(Ins) No. Companies Act or under sections 68 to 73 of the Code is/are made out then,
121/2020] the Central Government, may refer the matter to the Special Court itself or
may even require IBBI or to authorise any person as per section 236(2) of the
The appellant led a writ before HC against the order of the AA initiating CIRP, Code to le a complaint.
which was dismissed as withdrawn. The appellant led an appeal before the
NCLAT, with an application seeking exclusion of time of proceeding bona de State Bank of India Vs. Maithan Alloys Limited & Ors. [CA(AT)(Ins)
spent in court without jurisdiction under section 14 of the Limitation Act, No.1245-1247/ 2019]
1963. The NCLAT observed that said section relates to the period of R1 was successful bidder in the second round of e-auction for purchase of CD
limitation for any suit. Relying on section 238 of the Code, it held that section as a going concern and paid 25% of bid amount of `68 crore. R2 to R4, who
61(2) of the Code shall override section 5 of the Limitation Act. As the appeal did not participate in the e-auction, offered a higher amount of `70 crore.
was led after 45 days from the date of receipt of the order, it held that it has Considering the higher bid in tune with objectives of the Code, the AA
no jurisdiction to entertain the appeal. ordered the liquidator to accept their offer. R1 requested the liquidator to
Mr. M. Ravindranath Reddy Vs. Mr. G. Kishan & Ors. [CA(AT)(Ins) No. return the amount it had paid. The AA directed the liquidator to return the
331/2019] amount with interest. On an appeal by an FC, the NCLAT observed that there
was no need for the AA to direct the liquidator for considering the proposal R2
In this appeal, the NCLAT considered whether a landlord, who has granted to R4, who approached the AA after due date of nalisation of auction. It
lease, is an OC. It observed that the Code recognises two types of debt, directed R1 to complete the sale transaction. It imposed a ne of `10 lakh on
nancial debt and operational debt, and accordingly FCs and OCs may make R2 to R4 each for hampering and derailing the liquidation process.
an application for initiating CIRP and no other creditor qualies to make an
application. It stated that for a debt to be classied as an operational debt, it Suo Motu [CA(AT)(Ins) No. 01/2020]
must fall into one of the three following categories: (a) the debt amount should The NCLAT under rule 11 of the NCLAT Rules read with the decision in Quinn
fall within the denition of claim under section 3(6), (b) such a claim should fall Logistics India Pvt. Ltd. Vs. Mack Soft Tech Pvt. Ltd. [CA(AT)(Ins) No.185/ 2018],
within the connes of the denition of a debt under section 3(11), and (c) such took suo motu cognizance of the unprecedented situation arising out of spread
a debt should fall strictly within the scope of an operational debt under section of COVID-19 pandemic and ordered: (a) The period of lockdown ordered by
5(21) of the Code. It concluded that lease of immovable property cannot be the Central/State Governments including the period as may be extended
considered as a supply of goods or rendering of any services and thus, cannot either in whole or part of the country, where the registered ofce of the CD
be considered as operational debt. may be located, shall be excluded for the purpose of counting of the period for
Kundan Care Products Ltd. Vs. Surya Kanta Satapathy & Ors. CIRP under section 12 of the Code in all cases where CIRP is pending before
[CA(AT)(Ins) No. 11 & 75/2020] any AA or in appeal before NCLAT; and (b) Any interim order/stay passed by
the NCLAT in any appeal under the Code shall continue till next date of
The appellant submitted a resolution plan which was rejected by the RP, as it hearing, to be notied later.
was ranked H6 and as per the RFRP, only top three resolution applicants would
be invited to present their plans before the CoC. The appellant sought for an Mr. Vijaykumar Vs. Mr. Gopalsamy Ganesh Babu & Ors. [CA(AT)(Ins)
opportunity to negotiate or revise or enhance its bid, but it was denied. The No. 1207/ 2019]
NCLAT observed that it is a settled law that the resolution applicant has no right The CoC resolved to liquidate the CD as it had only a trading business and
for re-negotiation or further negotiation. After submission of the plan, if it there was no possibility of making it a going concern. In appeal challenging
satises section 30(2) of the Code, the same must be placed before the CoC. liquidation order, it was submitted that the dues of the only FC, four OCs and
The process of evaluation is guided by the criteria set out in the RFRP. It also the liquidator have been settled. The NCLAT, in exercise of its inherent
observed that a plan can only be challenged on the grounds under section 61(3). powers under rule 11of the NCLT Rules to do justice, set aside the order of

liquidation considering that the object of the Code is resolution and that effort Mr. Savan Godiwala Vs. Mr. Apalla Siva Kumar [CA(AT)(Ins) No.
should be made to revive the CD rather than liquidate it. 1229/2019]
Rajive Kaul Vs. Vinod Kumar Kothari & Ors. [CA(AT)(Ins) No. 44, 224 Appeal was against order of the AA directing the liquidator to pay gratuity to
& 1518/2020] the employees even though the CD did not have separate funds allocated for
The liquidator moved the AA to remove nominee directors of the CD for non- the same. Relying on State Bank of India Vs. Moser Baer Karamchari Union and
cooperation, active obstruction, breach of duty and breach of code of Anr., the NCLAT held that the PF, pension fund and the gratuity fund do not
conduct. The AA held that the liquidator has the power to remove and form part of the liquidation estate and therefore, the liquidator, who holds
appoint nominee directors. On an appeal, the NCLAT upheld the order of the liquidation estate in duciary capacity, has no authority to deal with such funds.
AA and held it is an axiomatic principle in law that a company in liquidation acts Aashish Mohan Gupta Vs. Hind Inn and Hotels Ltd. & Anr.
through the liquidator and the liquidator steps into the shoes of the board of [CA(AT)(Ins) No. 1229/2019]
directors of the company under liquidation for the purpose of discharging its The NCLAT noted that retention money is a part of the bill which is retained
statutory duties. It further held that the liquidator is armed with requisite by the CD, as per the terms of the work order, and the same is released after
powers to remove the nominee directors and is entitled to nominate the the defect liability period ends. Accordingly, it held that retention money falls
directors, and the company is enjoined to act upon the replacement proposal within the denition of operational debt as dened in section 5(21) of the
of the existing nominee directors. He is not required to inform the reasons for Code.
replacing nominee directors.
National Company Law Tribunal
Laxmi Pat Surana Vs. Union of India and Anr. [CA(AT)(Ins)
No. 77/2020] Clutch Auto Ltd. [CA-1432(PB)/2019 & CA-1433(PB)/2019 in (IB)-
15(PB)/2017]
It was submitted that an insolvency proceeding can be initiated against a
guarantor, where both the principal debtor and guarantor are corporate The liquidator led an application against the Municipal Corporation,
Faridabad (MCF) to de-seal CD's land and hand it over to him. The AA
entities. In this matter, since an insolvency proceeding cannot be initiated
observed that the property was sealed by MCF during moratorium in violation
against the debtor, which is a sole proprietorship rm, insolvency proceeding
of section 14. It directed MCF to de-seal the property and the liquidator to
cannot be initiated against the guarantor company. The NCLAT observed that
consider its claim relating to tax on the property sealed.
nancial debt includes a debt owed to a creditor by a principal and guarantor.
An omission or failure to pay the debt by guarantor, when principal sum is M / s N N E n t e r p r i s e s V s . Re l c o n I n f r a Pr o j e c t s L i m i t e d
claimed, comes within the scope of default under section 3(12). Therefore, [CP(IB)3980/MB/C-IV/2018]
CIRP can be initiated by an FC who had taken guarantee from the corporate The issue was whether the applicant being an unregistered partnership rm
guarantor, who extended guarantee on behalf of a proprietorship rm. can initiate CIRP in view of section 69 of the Indian Partnership Act, 1932. The
Asset Reconstruction Company (India) Ltd. Vs. Corporation Ltd. & AA held that section 69(2) of the Act applies to suits, and, therefore, cannot
Ors. [CA(AT)(Ins) No. 418/2020] apply to proceedings under the Code.
The resolution plan, as approved by the CoC, was pending for approval of the M/s. Nathella Sampath Jewelry Private Limited [MA/1147/2019 &
AA, as it had ordered for fresh valuation. In appeal against the decision for MA/547/2018 in CP/129/IB/CB/2018]
fresh valuation, the NCLAT observed that no party has a right to question AA's Post initiation of CIRP, the ED had provisionally attached certain immovable
discretion to order further valuation before approval of the plan. properties of the CD. Meanwhile, despite publishing EoI twice, no resolution
plan was received. The AA ordered liquidation of the CD and appointed RP as
Rupesh Kumar Gupta Vs. Punjab National Bank & Anr. [CA(AT)(Ins)
the liquidator. It observed that ordering liquidation after completion of CIRP
No. 1119/2019]
will not have any bearing on PMLA proceedings, as action against erring
An appeal was led against initiation of CIRP on the ground of limitation. The management will not be affected by the order of lqiuidation.
issue was whether minutes of meeting of the board of directors of the CD,
Unimark Remedies Limited [MA 1406/2019 in CP 197/I&B/NCLT/
which discussed the restructuring of the loan, can be termed as an
MAH/2018]
acknowledgment of debt. The NCLAT held that from the minutes of meeting
of the board, it is seen that there was an acknowledgement of debt by the CD Reference was made to a single member bench of the NCLT, Mumbai by the
as on the relevant date and initiation of CIRP was not time barred. Principal Bench to adjudicate whether fresh valuation can be ordered since
the two members of the Division Bench held different views. The single
Punjab National Bank Vs. M/s Vindhya Cereals Pvt. Ltd. [CA(AT)(Ins)
member bench observed that reasoning of the Valuers for ascribing the nil
No. 854/ 2019]
value is untenable in the interest of maximizing the assets of the CD. No legal
An FC led an application under section 7, after it had initiated a proceeding rights of any of the parties is affected if fresh valuation is carried out, at best
under the SARFAESI Act, 2002. The AA considered it to be forum shopping would assist the better valuation of CD as a going concern. It ordered the RP
and directed the FC to show cause as to why it should not be penalised under to take steps to appoint a fresh valuer with a limited scope of valuing the
section 65 of the Code. On appeal, the NCLAT held that an FC can proceed intangible assets considering the International Standards of Valuation.
simultaneously under SARFAESI as well as the Code. However, in view of M/s. Jain Mfg. (India) Pvt. Ltd. [CA No. 142/2019 in CP(IB) No.
section 238, the provisions of the Code shall have overriding effect over 422/ALD/2018]
other laws.
Application was led under section 60(5) by the promoter of the CD against
Indian Renewable Energy Development Agency Limited Vs. Mr. T.S.N. declaration of one entity as an FC. The AA observed that as the CoC has voted
Raja [CA(AT)(Ins) No. 899/2019] in majority in favour of the entity as FC, the suspended management as well as
The RP rejected claim of a charge holder in the mortgaged property of the the RP have no locus to challenge the commercial wisdom and decision of the
CD, as the CD had not defaulted in payment to the claimant. The appellant CoC and held that the entity is an FC.
moved the AA which upheld the decision of the RP. On appeal, the NCLAT, State Bank of India Vs. Videocon Industries Limited (VIL) and Ors.
directed the appellant to bring the existing contingent right to the notice of the [MA 2385/2019 in CP(IB)-02/MB/2018]
resolution applicant through the AA.
Application was led before the AA to direct the RP to treat all assets,

properties, rights, claims, benets of three group companies (having foreign either relinquish their security interest or to proceed under section 52.
oil and gas assets) of the CD as its assets and properties, and also to make Considering the fact that liquidation process cannot be completed without the
moratorium applicable on foreign assets. While allowing the application, the cooperation of all FCs, it directed that their security interests stand
AA observed that in case the assets are not considered to be the assets of a relinquished.
single economic entity, then the effective resolution of 13 CDs would not Infonet Asia Private Limited [MA/1397/2019 in CP/536/IB/
meet the objective envisaged under the Code and they will be forced into CB/2017]
liquidation despite having sufcient assets to resolve the CD. The resolution plan provided for withdrawal of suit or application pending
State Bank of India Vs. M/s. Metenere Limited [CP No. against the CD. While approving the plan, the AA modied it to the effect that
IB-639(PB)/2018] for the claims treated in the plan, such proceedings shall be withdrawn but the
The CD objected to the appointment of IRP on the ground that he was an ex- CD shall remain liable to the outcome of the proceedings not nally
employee of FC from 1977 to 2016. While granting an opportunity to FC to determined by the court.
substitute the IRP, the AA observed that the proposed IRP is unlikely to act Abhijit Guhathakurta Vs. Central Goods & Services Department
fairly and cannot be expected to be an independent umpire. [MA-4048/2019 in CP No. 02/I&BC/NCLT/MB/MAH/2018]
Tecpro Systems Limited [CA 2683(PB)/2019 in CP No. (IB)- The RP led application seeking directions against the Central Goods and
197(PB)/2017] Services Department (CGSD) to restore e-way facility so that the applicant
There was inordinate delay in implementation of the approved resolution can le returns on behalf of the CD, accept physical ling of returns and refrain
plan. The erstwhile members of the CoC approved liquidation of the CD with from taking coercive measures against the CD. The AA observed that while
99.28% of voting rights. The AA approved liquidation and directed forfeiture the GST laws do not restrict deposition of GST for a month if the prior GST
of performance guarantee of `5 crore. dues are not paid, the online portal restricts the same. It directed the CGSD to
Indian Overseas Bank Vs. M/s Rathi TMT Saria Pvt. Ltd. [(IB)- accept manual monthly returns along with physical GST deposits for the
938(PB)/2018] moratorium period and restore the e-way facility for ling of the GST returns.
The AA allowed the application led under section 12(2) and (3) of the Code
for a second extension of CIRP for further 30 days beyond 270 days, with the Special Courts
approval of CoC with 98.6% voting rights. In the complaints led by IBBI under section 236 of the Code before
Jaiprakash Associate Limited & Ors. [CA No. 59/2019 & Ors. in (IB)- various Special Courts, the following orders were passed:
77/ALD/2017] Accused Contraventions of sections Order
Ex-directors and key managerial personnel 70(1)(a)(b)(c) and (e) and section Cognizance taken
The AA approved the resolution plan submitted by NBCC, with the following of M/s. Amira Pure Foods Pvt. Ltd. 19(1) read with section 235A
directions: Resolution Applicant and Resolution 70(2), 29A read with section 235A Resolution Applicant
Professional released on Bail;
(a) `750 crore: When the money has been paid by JAL towards an Bail application of RP
obligation as per directions of the SC, it can no more be considered assets of served on IBBI for say.
JAL. Also, JAL is not under further obligation to complete construction of Ex-directors and key managerial personnel 68(1), 70(1)(a), 70(1)(c) and Cognizance taken
of M/s. Jay Polychem India Ltd. 19(1) read with section 235A
homes. The amount would be utilised for the cause of the creditors. Ex-directors and key managerial personnel 68(1)(b), 70(1)(c), 74(1) and Cognizance taken
Therefore, the amount shall be treated as the asset of the CD. of Nibula Print and Pack Pvt. Ltd. 19(1) read with section 235A
Ex-director and key managerial personnel 69, 70, 74(1), 19(1) read Released on bail
(b) Resolution plan: It was held: (i) there was no need for separate protection of M/s White and Brown Alloy with section 235A
from the PMLA proceedings; (ii) the Code does not prohibit two resolution Castings Pvt. Ltd.
plans being put to vote simultaneously; (iii) dissenting creditors are to be paid
in cash equivalent to the liquidated sum they are entitled under section 53; (iv) IBBI
the plan shall make provision to clear the dues of the FD holders, who have not In the matter of Mr. Mukesh Kumar Rathi, RV (Order dated January 8,
made claims, as and when claims are made; (v) past liabilities of income-tax 2020)
authority shall stand extinguished; (vi) any non-compliance arising out of Mr. Rathi registered a website with the domain name 'www.ibbivaluer.com' on
claims prior to CIRP initiation shall not have any bearing on this CD; (vii) all March 21, 2019. He was registered as a valuer with the Board on August 23,
claims placed before the RP and any criminal proceeding appurtenant to those 2019. He discontinued use of domain name on November 14, 2019 and
claims are extinguished; and (viii) the IRP will not be held responsible with surrendered the same on December 7, 2019. For misleading the stakeholders
regard to discharge of his duty during CIRP. and the Board by using such a domain name even after his registration as a
State Bank of India Vs. Adhunik Metaliks Ltd. [CA No. 118/CTB/ 2019 valuer, the Board suspended his registration for three months.
connected with TP No. 44/CTB/2019 in CP(IB)No. 373/KB/2017] In the matter of Mr. Rashmi N. Thakeria, IP (Order dated January 24,
2020)
The liquidator led application seeking clarity about the treatment of claims
received between July 18, 2018 and July 7, 2019 when the CD was supposed Mr. Thakeria obtained a certicate of registration as IP, suppressing facts that
to be revived under resolution plan approved on July 17, 2018. The AA held proceedings were pending against him before DRT. Finding him to be a person
that the claims received during the period can neither be treated as part of not t and proper, the Board cancelled his registration.
insolvency resolution process costs nor do they fall under liquidation cost, and In the matter of Mr. Tarun Jaggi, IP (Order dated March 20, 2020)
hence, cannot be accorded priority over other dues. The DC observed that the Mr. Jaggi failed to make public announcement
Gujarat NRE Coke Ltd. [IA(IB) No. 122, 305 & 194/KB/2020 in C.P. within the time prescribed under in the voluntary liquidation of processes of
(IB) No. 182/KB/2017] two companies and engaged an auditor, who were statutory auditors of the
company before commencement of voluntary liquidation. It imposed a
The liquidator sought direction of the AA against the secured creditors to monetary penalty of `1,00,000 on Mr. Jaggi.

The distribution of stakeholders who triggered CIRP is presented in Table
Corporate Processes 3. OCs triggered 49.65% of the CIRPs, followed by about 43.61% by FCs
The data used in this section relating to corporate processes are provisional. and remaining by the CDs.
These are getting revised as further information is received from IPs or the Table 3: Initiation of Corporate Insolvency Resolution Process
information in respect of a process changes. For example, a process may Quarter No. of CIRPs Initiated by
ultimately yield an order for liquidation even after approval of resolution plan Operational Financial Corporate Total
Creditors Creditors Debtors
or may ultimately yield resolution plan even after an order for liquidation.
Jan - Mar, 2017 7 8 22 37
Insolvency Resolution Apr - Jun, 2017 58 37 35 130
Jul - Sep, 2017 98 99 38 235
Since the coming into force of the provisions of CIRP with effect from Oct - Dec, 2017 65 65 14 144
December 1, 2016, 3774 CIRPs have commenced by the end of March, Jan - Mar, 2018 89 85 22 196
2020, as presented in Table 1. Of these, 312 have been closed on appeal Apr - Jun, 2018 129 102 18 249
Jul - Sep, 2018 126 100 16 242
or review or settled; 157 have been withdrawn; 914 have ended in orders Oct - Dec, 2018 146 114 16 276
for liquidation and 221 have ended in approval of resolution plans. Jan - Mar, 2019 164 197 21 382
Sectoral distribution of CDs under CIRP is presented in Table 2. Apr - Jun, 2019 154 130 17 301
Table 1: Corporate Insolvency Resolution Process (Number) Jul - Sep, 2019 294 279 9 582
Quarter CIRPs Admitted Closure by CIRPs Oct - Dec, 2019 329 267 17 613
at the at the
Jan - Mar, 2020 215 163 9 387
beginning Appeal/ Withdrawal Approval of Commencement end of
of the Review/ under Section Resolution of Liquidation the Total 1874 1646 254 3774
Quarter Settled 12A Plan Quarter
Jan - Mar, 2017 0 37 1 0 0 0 36 The status of CIRPs as on March 31, 2020 is presented in Table 4.
Apr -Jun, 2017 36 130 8 0 0 0 158 Table 4: Status of CIRPs as on March 31, 2020
Jul - Sep, 2017 158 235 18 0 2 8 365 Status of CIRPs No. of CIRPs
Oct - Dec, 2017 365 144 40 0 7 24 438 Admitted 3774
Jan - Mar, 2018 438 196 23 0 11 59 541 Closed on Appeal / Review / Settled 312
Apr - Jun 2018 541 249 22 1 14 51 702 Closed by Withdrawal under section 12A 157
Jul - Sep, 2018 702 242 33 27 29 86 769 Closed by Resolution 221
Oct - Dec, 2018 769 276 13 38 18 82 894 Closed by Liquidation 914
Jan - Mar, 2019 894 382 50 21 20 86 1099 Ongoing CIRP 2170
Apr - Jun, 2019 1099 301 26 26 26 95 1227 >270 days 738
Jul - Sep, 2019 1227 582 28 21 32 153 1575
> 180 days ≤ 270 days 494
Oct - Dec, 2019 1575 613 27 11 35 149 1966
> 90 days ≤ 180 days 561
Jan - Mar, 2020 1966 387 23 12 27 121 2170
≤ 90 days 377
Total NA 3774* 312 157 221** 914 2170
*These CIRPs are in respect of 3706 CDs
**This excludes 1 CD which has moved directly from BIFR to resolution
Source: Compilation from website of the NCLT
Table 2: Sectoral Distribution of CDs under CIRP as on March 31, 2020

Sector No. of CIRPs
Admitted Closed Ongoing
Appeal/ Withdrawal Approval of Commencement Total
Review/ under Section Resolution Plan of Liquidation
Settled 12 A
Manufacturing 1527 105 60 115 396 676 851
Food, Beverages & Tobacco Products 196 9 7 11 49 76 120
Chemicals & Chemical Products 154 10 7 18 34 69 85
Electrical Machinery & Apparatus 112 9 3 4 45 61 51
Fabricated Metal Products 85 5 6 4 24 39 46
Machinery & Equipment 168 20 9 9 36 74 94
Textiles, Leather & Apparel Products 261 16 8 13 88 125 136
Wood, Rubber, Plastic & Paper Products 180 10 7 15 34 66 114
Basic Metals 266 18 6 31 64 119 147
Others 105 8 7 10 22 47 58
Real Estate, Renting & Business Activities 757 87 45 27 148 307 450
Real Estate Activities 183 22 11 6 17 56 127
Computer and related activities 109 14 6 0 23 43 66
Research and Development 5 1 1 1 0 3 2
Other Business Activities 460 50 27 20 108 205 255
Construction 408 45 18 18 66 147 261
Wholesale & Retail Trade 378 26 12 13 117 168 210
Hotels & Restaurants 88 10 5 9 18 42 46
Electricity & Others 117 4 1 7 18 30 87
Transport, Storage & Communications 112 9 4 7 37 57 55
Others 387 26 12 25 114 177 210
Total 3774 312 157 221 914 1604 2170
Note: The distribution is based on the CIN of CDs and as per National Industrial Classication (NIC 2004).
Withdrawals under Section 12A

Till March, 2020, a total of 157 CIRPs have been withdrawn under section 12A of the Code. The distribution of claims and reasons for withdrawal in these
CIRPs are presented in Table 5.

Table 5: Claim Distribution and Reasons for Withdrawal BIFR and / or defunct (Table 6). The economic value in most of these CDs
Amount of Claims Admitted* (` crore) No. of CIRPs
had already eroded before they were admitted into CIRP.
≤ 01 64
Table 6: CIRPs Ending with Orders for Liquidation
> 01 ≤ 10 36
State of Corporate Debtor at the Commencement of CIRP No. of CIRPs initiated by
> 10 ≤ 50 21
> 50 ≤ 100 08 FC OC CD Total
> 100 ≤ 1000 06 Either in BIFR or Non-functional or both 251 285 101 637
> 1000 02 Resolution Value ≤ Liquidation Value 308 340 107 755
Resolution Value > Liquidation Value 63 35 26 124
Reason for Withdrawal*
Note: 1. There were 55 CIRPs, where CDs were in BIFR or non-functional but had resolution value
Full settlement with the applicant 38
higher than liquidation value.
Full settlement with other creditors 08 2. Where liquidation value is not available, it has not been taken into account.
Agreement to settle in future 10 3. Data of 35 CIRPs is awaited.
Other settlements with creditors 45
Corporate debtors not traceable 02
Till December, 2019, 190 CIRPs had yielded resolution plans as presented
Corporate debtor struck off the Register 01 in the last newsletter. Five CIRPs were later reported as yielding
Applicant not pursuing CIRP due to high cost 02 resolution plans during that period, as presented in Part A of Table 7.
Others 31 During January - March, 2020, 27 CIRPs yielded resolution plans with
* Data awaited in 20 CIRPs different degrees of realisation in comparison to the liquidation value as
presented in Part B of Table 7. During the quarter, realisation by FCs
Resolution Plans under resolution plans in comparison to liquidation value is 128.09%,
It is seen that about 56.98% of the CIRPs, which were closed, ended in while the realisation by them in comparison to their claims is 64.10%. Till
orders for liquidation, as compared to 13.77% ending with a resolution March, 2020, realisation by FCs under resolution plans in comparison to
plan. However, it is important to note that 72.46% of the CIRPs ending in liquidation value is 183.37%, while the realisation by them in comparison
liquidation (637 out of 879 of which data is available) were earlier with to their claims is 45.96%. It is important to note that of the 221 CDs
rescued under the processes under the Code, 70 were in BIFR or defunct.
Table 7: CIRPs Yielding Resolution (Amount in ` crore)
Sl. Name of CD Defunct Date of Date of CIRP Total Liquidation Realisable Realisable Realisable
No. (Yes/No) Commencement Approval of initiated Admitted Value by FCs by FCs by FCs
of CIRP Resolution Plan by Claims as % of as % of
of FCs their Liquidation
Claims Value
Admitted
Part A: Prior Period (Till December 31, 2019)
1 Mohak Carpets Private Limited Yes 12-10-18 10-10-19 FC 64.57 9.34 14.18 21.96 151.82
2 Metallica Industries Limited* NA 13-04-18 16-10-19 FC
3 ICOMM Tele Limited No 04-10-18 17-10-19 FC 1907.97 398.45 603.52 31.63 151.47
4 Maruti Koatsu Cylinders Limited Yes 26-04-18 22-10-19 OC 86.70 11.37 14.21 16.39 124.98
5 Euro Pallets Private Limited No 18-05-18 05-12-19 FC 34.97 0.83 3.01 8.61 362.65
Part B: January - March, 2020
1 V S Texmills Private Limited No 09-01-19 01-01-20 FC 16.31 4.63 4.44 27.22 95.90
2 Era T&D Limited No 03-12-18 02-01-20 FC 26.25 14.01 11.50 43.81 82.08
3 Tirupati Infraprojects Private Limited No 03-07-17 04-01-20 FC 658.41 208.48 252.00 38.27 120.87
4 ILC Industries Limited No 16-04-19 13-01-20 OC 10.87 10.03 7.21 66.33 71.88
5 Empee Distilleries Limited* NA 01-11-18 20-01-20 FC
6 Noble Explochem Limited No 14-05-18 22-01-20 OC 106.12 51.86 57.30 54.00 110.49
7 Hwashin Industries Private Limited No 10-01-19 22-01-20 OC 0.00 0.44 – – –
8 SRS Meditech Limited Yes 15-11-18 28-01-20 OC 29.36 1.35 13.75 46.83 1018.52
9 Sri Ramanjaneya Ispat Private Limited* NA 12-12-18 28-01-20 OC
10 Ferro Alloys Corporation Limited* NA 06-07-17 30-01-20 FC
11 Govind Rubber Limited Yes 18-01-19 31-01-20 OC 152.73 28.77 27.00 17.68 93.85
12 Vaksh Steels Private Limited Yes 13-02-19 31-01-20 FC 40.22 6.80 9.75 24.24 143.38
13 Langlai Tea and Industries Limited* NA 29-03-19 05-02-20 CD
14 Golden Jubilee Hotels Private Limited No 27-02-18 07-02-20 FC 969.84 453.00 362.01 37.33 79.91
15 Haryana Steel and Alloys Limited No 13-02-19 07-02-20 FC 1107.36 122.87 114.90 10.38 93.51
16 Sitarganj Fibers Limited No 09-04-19 07-02-20 FC 71.83 12.48 13.10 18.24 104.97
17 Charming Apparels Private Limited* NA 08-12-17 10-02-20 OC
18 Bheema Cements Limited Yes 09-07-18 11-02-20 FC 498.79 194.05 201.60 20.42 103.89
19 Kalptaru Steel Rolling Mills Private Limited Yes 14-08-18 14-02-20 FC 136.60 25.87 26.15 19.14 101.08
20 Aditya Estates Private Limited No 26-02-19 14-02-20 FC 593.55 153.40 263.00 44.31 171.45
21 Sadbhav Enterprises Private Limited* NA 19-09-17 24-02-20 FC
22 Odisha Slurry Pipeline Infrasructure Limited* NA 14-05-19 02-03-20 FC
23 Adhunik Metaliks Limited No 03-08-17 03-03-20 FC 5371.23 431.50 410.00 7.63 95.02
24 Zion Steel Limited No 03-08-17 03-03-20 FC 5367.02 14.55 15.00 0.28 103.09
25 Jaypee Infratech Limited No 09-08-17 03-03-20 FC 23176.00 17767.00 23223.00 100.20 170.46
26 F M Hammerle Textiles Limited No 27-06-17 13-03-20 CD 769.28 66.58 52.08 6.77 78.22
27 Mansa Print and Publisher Limited* NA 28-02-19 18-03-20 FC
Total (January - March, 2020) 39101.77 19567.67 25063.79 64.10 128.09
Total (Till March, 2020) 384436.67 96349.52 176673.70 45.96 183.37
*Data awaited
NA : Not Available
Defunct: Not Going Concern/ Erstwhile BIFR
Two CDs (Adhunik Metaliks Limited and Zion Steels Limited) which had earlier yielded liquidation have been resolved and one CD (Tecpro Systems Limited) which had earlier yielded resolution have since moved into liquidation.

Sl. Name of CD Defunct CIRP Date of Date of
Liquidation No. (Yes / No) Initiated Commencement Liquidation
by of CIRP Order
Till December 31, 2019, a total of 780 CIRPs had yielded orders for
45 Jai Bhole Nath Enterprises Pvt Ltd Yes OC 12-04-19 27-01-20
liquidation, as presented in the previous Newsletter. 19 CIRPs were later 46 Shree Vaishno Devi Mills Private Limited Yes FC 22-07-19 27-01-20
reported as yielding orders for liquidation during that period, as indicated 47 Yash Smelter Private Limited NA OC 25-07-19 27-01-20
48 Steel Konnect (India) Private Limited NA FC 19-04-17 28-01-20
in Part A of Table 8. During the quarter January - March, 2020, 121 CIRPs 49 Seitz India Private Limited Yes OC 08-08-19 28-01-20
ended in liquidation, taking the total CIRPs yielding liquidation to 914 50 Aakash Tiles Private Limited No FC 04-01-19 29-01-20
(excluding 6 cases where liquidation order has been set aside by NCLAT / 51 Speciality Polymers Private Limited NA FC 14-01-19 29-01-20
52 Evershine Advisory Services Private Limited NA FC 25-02-19 30-01-20
Supreme Court). The details of the CIRPs ending in orders of liquidation 53 HBN Dairies and Allied Limited NA FC 14-08-18 31-01-20
during the quarter is reported in Part B of Table 8. 54 Maximum Agency Private Limited Yes FC 02-08-19 31-01-20
55 Gee Pee Infotech Pvt Ltd Yes FC 02-08-19 31-01-20
56 BRG Iron & Steel Co. Private Limited No FC 05-03-19 03-02-20
Table 8: CIRPs Yielding Orders for Liquidation
57 Adyama Rice Mill Pvt Ltd NA FC 06-08-19 03-02-20
Sl. Name of CD Defunct CIRP Date of Date of 58 Ruchika Tradelink Private Limited No OC 07-08-19 03-02-20
No. (Yes / No) Initiated Commencement Liquidation 59 Neoteric Infomatique Limited NA OC 11-11-19 04-02-20
by of CIRP Order
60 Pawan Buildwell Private Limited No FC 04-04-18 05-02-20
Part A: Prior Period (Till December 31, 2019) 61 Komorebi Exports Private Limited Yes OC 10-01-19 05-02-20
1 Maxroth Impex Private Limited Yes OC 12-09-18 05-07-19 62 Isolux Corsan India Engineering & No FC 11-10-18 06-02-20
2 Ramkar Steel Rerolling Private Limited Yes FC 06-02-19 25-07-19 Construction Private Limited
3 Om Shiv Hydro Power & Construction Private Limited NA FC 17-05-18 26-07-19 63 Vastu Land Realtors Private Limited Yes OC 27-02-19 06-02-20
64 Kansal Building Solutions Private Limited No FC 25-03-19 06-02-20
4 Sai Infosystem (India) Limited NA FC 30-11-17 22-08-19
65 Bhuvee Stenovate Private Limited No FC 12-03-19 07-02-20
5 Claps Wikids Education Private Limited NA FC 03-12-18 03-10-19
66 Tripurari Agro Private Limited Yes OC 07-06-19 07-02-20
6 OSPL Infradeal Private Limited No FC 15-02-19 22-10-19
67 Incab Industries Ltd. NA OC 07-08-19 07-02-20
7 Shri Shyamji Agrico Exports Private Limited Yes FC 02-01-19 05-11-19
68 Abhay Nutrition Private Limited NA FC 02-04-19 07-02-20
8 Fearless Media Private Limited Yes OC 16-08-19 26-11-19
69 Star Mineral Resources Private Limited Yes OC 17-12-18 10-02-20
9 Wig Brothers Construction Private Limited Yes OC 09-07-18 27-11-19
70 Terrene Pharma Private Limited Yes OC 14-08-19 10-02-20
10 Venkateswara Capital Management Limited No FC 05-03-19 29-11-19
71 Bee Kay Precision (India) Private Limited NA OC 21-08-18 10-02-20
11 Prithvi Finvest Co. Private Limited NA FC 15-01-18 02-12-19
72 Special Prints Ltd Yes OC 15-07-19 10-02-20
12 Sumeru Processors Private Limited NA FC 15-04-19 03-12-19
73 Aashita Builders Private Limited NA FC 27-02-19 10-02-20
13 Satkar Air Cargo Services Private Limited Yes FC 09-08-19 03-12-19
74 Skyrise Overseas Private Limited Yes FC 09-08-19 11-02-20
14 Oasis Tradelink Limited Yes OC 26-02-19 04-12-19
75 Anandram Developers Private Limited NA FC 06-06-18 11-02-20
15 Perfect International Fabrications Private Limited NA OC 29-04-19 13-12-19 76 Surina Impex Private Limited NA FC 07-08-19 11-02-20
16 Raihan Healthcare Private Limited No FC 20-03-19 16-12-19 77 Turbo Metals Private Limited Yes CD 15-01-19 12-02-20
17 Mi Marathi Media Limited NA OC 07-01-19 17-12-19 78 Gajanan Oil Private Limited Yes OC 06-05-19 12-02-20
18 Seajaan Logistics Private Limited NA FC 04-04-19 20-12-19 79 Sholingur Textiles Limited Yes FC 04-02-19 13-02-20
19 Connexions Retail Stores Private Limited No OC 27-03-19 30-12-19 80 Apple Industries Limited NA FC 12-03-19 13-02-20
Part B: January - March, 2020 81 Penguin Umbrella Works Private Limited Yes FC 12-06-19 14-02-20
1 Ujala Pumps Pvt. Ltd. Yes OC 10-10-18 02-01-20 82 Bhagwandas Ispat Private Limited NA FC 23-10-19 14-02-20
2 Clover Forging & Machining Private Limited No FC 04-12-18 02-01-20 83 Interparts Marketing Private Limited NA FC 16-05-19 14-02-20
3 Kaliber Associates Private Limited Yes FC 18-01-19 02-01-20 84 Amira Pure Foods Private Limited NA OC 11-12-18 17-02-20
4 Essar Power (Jharkhand) Limited No FC 05-04-18 03-01-20 85 Ada Cellworks Wireless Engineering Private Limited NA OC 11-07-19 18-02-20
5 Nathella Sampath Jewelry Private Limited Yes CD 23-04-18 03-01-20 86 Monorex Private Limited Yes FC 27-02-19 18-02-20
6 Runeecha Textiles Limited Yes FC 31-07-18 03-01-20 87 Achariya Techno Solutions (India) Private Limited Yes OC 13-09-19 19-02-20
7 YS Marchandise International Private Limited Yes CD 06-06-19 03-01-20 88 Eshal Foods Private Limited Yes OC 19-09-19 19-02-20
8 Puneet Ispat Private Limited Yes OC 20-08-19 03-01-20 89 Konaseema Gas Power Limited No FC 18-12-18 20-02-20
9 Newgen Specialty Plastics Limited Yes OC 19-11-18 06-01-20 90 Hanumanta Engineering Private Limited No FC 19-08-19 20-02-20
10 SPS Steels Limited No OC 29-03-19 06-01-20 91 Maa Tara Ispat Industries Private Limited Yes OC 09-04-19 21-02-20
11 Innovative Studios Private Limited No FC 11-04-19 06-01-20 92 Space Matrix Private Limited Yes FC 28-08-19 24-02-20
12 Alka Fabrics Private Limited Yes OC 30-10-18 07-01-20 93 Alliance Lumiere Limited NA CD 05-09-19 24-02-20
13 Exclusive Fibers Limited No FC 28-03-19 07-01-20 94 Bholanath Ingots Private Limited Yes OC 07-08-19 24-02-20
14 Gagan Distillers and Beverages Private Limited Yes OC 10-04-19 08-01-20 95 J.L. Knit (India) Limited Yes FC 08-08-19 25-02-20
15 Jaydev Constructions Private Limited Yes OC 06-05-19 08-01-20 96 Aparna Polyflex Private Limited No OC 01-10-19 25-02-20
16 Maruthi Food Processing and Yes OC 21-06-19 08-01-20 97 Sura Leathers Private Limited NA OC 31-05-19 25-02-20
Agri Products Export (India) Private Limited 98 Amrit Hatcheries Private Limited Yes OC 20-08-19 25-02-20
17 Unishire Housing LLP NA OC 31-07-19 08-01-20 99 Little Bee International Private Limited Yes FC 31-05-19 26-02-20
18 Apex Buildsys Limited No FC 20-09-18 09-01-20 100 Firestar Diamond International Private Limited No FC 25-09-19 26-02-20
19 Atlanti Spinning and Weaving Mills Limited Yes FC 09-10-18 09-01-20 101 Loyal Auto Globe Private Limited Yes FC 12-03-19 27-02-20
20 Vijay Home Appliances Limited NA OC 24-04-19 09-01-20 102 Cryo-Save (India) Private Limited Yes CD 09-08-19 27-02-20
21 Earth Iconic Infrastructures Private Limited No FC 20-04-18 10-01-20 103 Vikram Hospital Private Limited Yes OC 19-06-18 28-02-20
22 INKA Foods Private Limited Yes FC 05-04-19 10-01-20 104 Noslar International Limited No OC 02-11-18 28-02-20
23 Enfield Solar Energy Limited Yes FC 27-06-19 10-01-20 105 Noni Bio-tech Private Limited NA OC 24-09-19 28-02-20
24 Archana Motors Private Limited No OC 01-07-19 10-01-20 106 ACE Tours Worldwide Limited NA CD 10-05-19 28-02-20
25 Orchid Salon Services Private Limited No OC 12-07-19 10-01-20 107 Kothari Foods and Fragrances Private Limited Yes FC 18-10-18 02-03-20
26 Shubham Industries Limited Yes FC 14-11-19 10-01-20 108 Global Rural Netco Limited NA OC 18-02-19 02-03-20
27 Collyer Container Terminal Private Limited NA OC 30-05-19 13-01-20 109 S R Foils and Tissue Limited Yes FC 07-08-17 04-03-20
28 Advance Surfactants India Limited Yes FC 28-05-19 14-01-20 110 Time & Space Lifestyle LLP NA OC 09-09-19 04-03-20
29 Rain Automotive India Private Limited Yes OC 14-06-19 15-01-20 111 Loyal Motors Private Limited NA FC 28-01-19 05-03-20
30 Tecpro Systems Limited No FC 07-08-17 16-01-20 112 Rabirun Vinimay Pvt. Ltd. No FC 07-03-19 05-03-20
31 Kolkata Electronics Private Limited Yes OC 05-07-19 16-01-20 113 Diabari Tea Co Limited Yes OC 17-06-19 11-03-20
32 Bansal Refineries Private Limited Yes FC 09-07-19 17-01-20 114 U V Exports Private Limited Yes OC 19-09-19 11-03-20
33 Veracious Builders & Developers Private Limited No OC 30-07-19 17-01-20 115 Chaitra Glaze Private Limited NA OC 27-11-19 12-03-20
34 Sabre Helmets Private Limited Yes OC 22-02-19 20-01-20 116 Samaara Leathers Private Limited NA OC 12-04-19 13-03-20
35 Allwyn Furniture Private Limited NA FC 07-01-19 20-01-20 117 Samruddhi Realty Limited NA OC 16-04-19 13-03-20
36 Shashi Oils and Fats Private Limited Yes FC 20-03-18 21-01-20 118 Bharath Coal Chemicals Limited NA OC 11-10-19 13-03-20
37 Patnazi Power Limited Yes OC 28-01-19 21-01-20 119 Vasmo Agro Nutri Product Private Limited NA FC 15-03-19 13-03-20
38 Parikh Fabrics Private Limited No CD 08-02-19 21-01-20 120 Food Express Industrial Catering NA OC 03-09-19 13-03-20
39 Shree Shyam Pulp & Board Mills Limited Yes FC 27-03-19 21-01-20 Services Private Limited
40 Purna Pharmaceuticals Private Limited Yes FC 03-10-19 22-01-20 121 B R Knitwears Private Limited NA OC 21-11-19 13-03-20
41 Petron Engineering Construction Limited No OC 23-03-18 23-01-20 Defunct: Not Going Concern/ Erstwhile BIFR
42 Shri Narsing Dev Sugar Private Limited No OC 06-09-18 23-01-20 NA: Not Available
43 Great Unison Contractors India Private Limited NA OC 08-01-19 23-01-20
44 Global Syntex (Bhilawara) Ltd Yes FC 21-08-19 24-01-20

The status of liquidation process as on March 31, 2020 is presented in Table 11: Reasons for Liquidation #
Circumstance Number of Liquidations
Table 9. Where Final Ongoing
Table 9: Status of Liquidation Processes as on March 31, 2020 Reports Submitted
Status of Liquidation Number AA did not receive resolution plan for approval 33 373
Initiated 914* AA rejected the resolution plan for 0 41
Final Report submitted 69 non-compliance with the requirements
Closed by Dissolution 55 CoC decided to liquidate the CD during CIRP 36 231
Closed by Going Concern Sale 1 CD contravened provisions of resolution plan 0 1
Ongoing 845 Total 69 646
> Two years 70 # Data are available for only 715 cases.
> One year ≤ Two years 277
> 270 days ≤ 1 year 96
Regulation 12 of the IBBI (Liquidation Process) Regulations, 2016 requires
> 180 days ≤ 270 days 143 the liquidator to make a public announcement calling upon stakeholders
> 90 days ≤ 180 days 138 to submit their claims as on the liquidation commencement date, within
≤ 90 days 121 30 days from the liquidation commencement date. The details of the
*This excludes 6 cases where liquidation order has been set aside by NCLAT / Supreme Court. claims admitted by the liquidators in 715 liquidations, for which data are
Till December 2019, 41 liquidation processes were closed by dissolution / available, are presented in Table 12.
going concern sale as presented in the last newsletter. Dissolution of 4 Table 12: Claims in Liquidation Process (Amount in ` crore)
Stakeholders under Number of Amount Liquidation Amount Amount
more CDs were later reported corresponding to that period, as Section Claimants of claims Value Realised Distributed
presented in Part A of Table 10. During January – March, 2020, 11 more Admitted
liquidation processes were closed, taking total number of dissolutions / 69 Liquidations where Final Report Submitted
52^ 4 21.96 0.64 0.64 0.64
sold as going concern to 56. The details of the same are presented in
53 (1) (a) 6.34
Table 10. 53 (1) (b) 267 9850.66 70.10
Table 10: Details of Closed Liquidations (Amount in ` crore) 53 (1) (c) 104 1.21 0.87
Sl. Name of CD Date of Amount of Liquidation Sale Amount Date of 53 (1) (d) 88 160.56 6.03
No. Order of Admitted Value Proceeds Distributed Order of
53 (1) (e) 32 280.46 107.75 104.17 # 6.24
Liquidation Claims to Dissolution
Stakeholders 53 (1) (f) 174 84 8.52
Part A: Prior Period (Till December 31, 2019) 53 (1) (g) 0 0 0
1 Nova Electro 03-12-18 0.02 0 0 NA 10-04-19 53 (1) (h) 65 2.88 1.51
Magnetics Limited Total (A) 734 10401.73 108.39 104.81 # 100.25
2 Right Towers 08-11-19 144.44 NA NA NA 08-11-19 Ongoing 646 Liquidations*
Private Limited*
53 (1) (a)
3 Infinity Fab Engineering 20-02-18 8.61 0.57 0.89 0.66 22-11-19
Company Private Limited 53 (1) (b) 29086 339560.67
4 Eolane Electronics 20-12-17 12.68 12.99 12.68 # 12.68 18-12-19 53 (1) (c) 21763 1205.51
Bangalore Private Limited 53 (1) (d) 7740 84898.57 22774.07**
Part B: January - March, 2020 53 (1) (e) 684 13333.55
1 VTL (India) Limited 08-08-19 153.42 NA NA NA 07-01-20 53 (1) (f) 1952636 24598.21
2 Uthrakaliamman 07-01-19 221.84 0.68 0.75 0.58 08-01-20 53 (1) (g) 0 0
Infrastructures
Private Limited 53 (1) (h) 644 837.06
3 Sri Maruthi Digitals 03-12-19 0.24 NA NA NA 10-01-20 Total (B) 2012553 464433.57
Private Limited Grand Total (A+B) 2013287 474835.30
4 Vishal Global Limited 08-07-19 0 NA NA NA 27-01-20 * Data for other liquidations are not available.
5 Balodis Technologies 15-11-19 0.42 0.11 0.11 0.06 31-01-20 # Inclusive of unclaimed proceeds of `4.56 crore under liquidation
Private Limited ** Liquidation value for only 462 CDs is available
6 Lupin Telepower 21-06-19 0.69 0 0 NA 03-02-20 ^ For 5 CDs, details on relinquishment or otherwise by secured creditors are not available. Accordingly,
Private Limited their details have been captured in Section 53.
7 Logix Express 20-02-19 8.49 NA NA NA 03-02-20 The average time taken for completion of 221 CIRPs yielding resolution is
Private Limited
8 Jhelum Industries 20-03-18 16.8 0 0 NA 07-02-20 415 days, including the time excluded by the AA. However, if the time
Private Limited excluded by the AA is excluded, the average time for completion of CIRPs
9 Apex MRI Centre 21-08-19 21.96 0.64 0.64^ 0.64^ 11-02-20
Private Limited is 375 days (Table 13). The average time taken for completion of 914
10 Micro Forge (India) Limited 12-12-17 97.16 0.03 0.06 NA 12-02-20 CIRPs, which have yielded orders for liquidations, is 309 days.
11 TAPL International 07-08-19 71.08 NA NA NA 27-02-20 Table 13: Average time for approval of Resolution Plans/Orders for Liquidation/Dissolution
Private Limited
Sl. Average time No. of Time (In days)
‘0’ means an amount below two decimals.
No. Processes Including Excluding
NA means Not realisable/Saleable or no asset left for liquidation.
* Direct Dissolution; Claims pertain to CIRP period covered excluded time excluded time
# The liquidator sold assets worth `2.3 crore only and rest of the assets of the CD were distributed to stakeholders to full CIRPs
satisfaction to their claims. 1 From ICD to Approval of resolution 221* 415 375
^ The secured creditors have decided not to relinquish the security interest. plans by AA
2 From ICD to order for liquidation by AA 914 309 NA
The AA passes an order for liquidation under four circumstances. The
Liquidations
details of liquidation as per each of these circumstances are presented in 3 From LCD to submission of nal report 69 270 NA
Table 11. 4 For submission of Final report under 202 315 NA
Voluntary Liquidation

Twelve large accounts able to pay its debts in full from the proceeds of the assets to be sold under
the proposed liquidation, (ii) the corporate person is not being liquidated to
Resolution of 12 large accounts were initiated by banks, as directed by defraud any person. At the end of March 31, 2020, 669 corporate persons
RBI. Together they had an outstanding claim of `3.45 lakh crore as against initiated voluntary liquidation (Table 15). Final reports in respect of 202
liquidation value of `73,220 crore. Of these, resolution plan in respect of voluntary liquidations have been submitted by March 31, 2020.
eight CDs have been approved and orders for liquidation have been Table 15: Commencement of Voluntary Liquidations till March 31, 2020 (Number)
passed in respect of two CDs. Due to failure of implementation of Quarter Liquidations at Liquidations Final Reports Liquidations
approved resolution plan in respect of one CD (Amtek Auto Ltd.), the the beginning Commenced Submitted at the end
process has restarted. Thus, CIRPs in respect of two CDs and liquidation Apr - Jun, 2017 0 13 0 13
Jul - Sep, 2017 13 41 0 54
in respect of two CDs are ongoing and are at different stages of the Oct - Dec, 2017 54 58 4 108
process. The status of the 12 large accounts is presented in Table 14. Jan - Mar, 2018 108 72 7 173
Table 14: Twelve Large Accounts (Amount in ` crore) Apr - Jun, 2018 173 38 16 195
Name of CD Claims of FCs Dealt Realisation by Successful Jul - Sep, 2018 195 61 16 240
Under Resolution all Claimants Resolution Applicant
Oct - Dec, 2018 240 38 29 249
Amount Amount Realisation as a percentage
Jan - Mar, 2019 249 92 34 307
Admitted Realised as % of of Liquidation
Claims Value Apr - Jun, 2019 307 53 19 341
Completed Jul - Sep, 2019 341 61 28 374
Electrosteel 13175 5320 40.38 183.45 Vedanta Ltd. Oct - Dec, 2019 374 65 22 417
Steels Limited Jan - Mar, 2020 417 77 27 467
Bhushan Steel 56022 35571 63.50 252.88 Bamnipal Steel Ltd. Total NA 669 202 467
Limited
Monnet Ispat & 11015 2892 26.26 123.35 Consortium of JSW and The status of 669 liquidations is presented in Table 16.
Energy Limited AION Investments Table 16: Phasing of Voluntary Liquidations
Pvt. Ltd. Status of Liquidation No. of Liquidations
Essar Steel 49473 41018 82.91 266.65 Arcelor Mittal Initiated 669
India Limited India Pvt. Ltd.
Final Report Submitted 202
Alok Industries 29523 5052 17.11 113.96 Reliance Industries Ltd.,
Closed by Dissolution 120
Limited JM Financial Asset
Reconstruction Ongoing 467
Company Ltd., > Two years 75
JMFARC - March 2018 > One year ≤ Two years 155
- Trust
> 270 days ≤ 1 year 43
Jyoti Structures 7365 3691 50.12 387.44 Group of HNIs led by
> 180 days ≤ 270 days 55
Limited Mr. Sharad Sanghi
> 90 days ≤ 180 days 62
Bhushan Power 47158 19350 41.03 203.39 JSW Ltd.
& Steel Limited ≤ 90 days 77
Jaypee Infratech 23176 23223 100.20 130.82 NBCC (India)
Limited Limited
While 669 cases of voluntary liquidation were admitted till March 31,
Under Process 2020, the reasons for these initiations are available for 569 cases, which
Amtek Auto Limited CIRP re-commenced are presented in Table 17.
Era Infra Engineering Limited Under CIRP Table 17: Reasons for Voluntary Liquidation
Lanco Infratech Limited Under Liquidation Sl. Reason for Voluntary Liquidation No. of
ABG Shipyard Limited Under Liquidation No. Corporate Persons
Notes: 1 Not carrying business operations 369
1. Due to failure of implementation of approved resolution plan in Amtek Auto Ltd., which was earlier 2 Commercially unviable 73
included in the completed list, the process has restarted.
3 Running into losses 14
2. The Resolution Plan approved in Jaypee Infratech Limited is under challenge before the Hon’ble NCLAT.
4 No revenue 20
Resolution of FSPs 5 Promoters unable to manage affairs 14
6 Purpose for which company was formed accomplished 8
On an application led by the RBI to initiate CIRP against Dewan Housing 7 Contract termination 5
Finance Corporation Ltd (DHFL), the AA admitted the application on 8 Miscellaneous 66
December 3, 2019. Mr. R. Subramaniakumar was appointed as the Total 569
Administrator. This is the rst FSP admitted for resolution under the Most of these corporate persons are small entities. 368 of them have paid-
Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of up equity capital of less than `1 crore. Only 67 of them have paid-up
Financial Service Providers and Application to Adjudicating Authority) capital exceeding `5 crore. The corporate persons, for which details are
Rules, 2019, which were notied on November 15, 2019. The available, have an aggregate paid-up capital of `3370 crore (Table 18).
Administrator has the same duties, functions, obligations, responsibilities,
Table 18: Details of 669 Liquidations (Amount in ` crore)
rights, and powers of an IP undertaking a process under the Code. The Details of No. of Paid-up Assets Outstanding Amount Surplus
CIRP is ongoing. Liquidations capital debt paid to
creditors
Voluntary Liquidation Liquidations for which 202 660 2971 18 18 2758
Final Reports submitted
A corporate person may initiate voluntary liquidation proceeding if majority Ongoing liquidations 467 2710# 1605# *
of the directors or designated partners of the corporate person make a Total 669 3370 4576 *
declaration to the effect that (i) the corporate person has no debt or it will be *For ongoing liquidations, outstanding debt amount is not available.
# Paid up capital and assets of 368 and 352 cases, respectively, are available.

It was reported in the last newsletter that dissolution orders were passed voluntary liquidations were passed taking the total dissolutions to 120.
in respect of 101 liquidations. Four more dissolution orders were later These 120 corporate persons owed ` 9.28 crore to creditors and through
reported during that period, as indicated in Part A of Table 19. During the voluntary liquidation process, they were paid ` 9.28 crore.
quarter January - March, 2020, dissolutions orders in respect of 15 more
Table 19: Realisations under Voluntary Liquidation (Amount in ` crore)
Sl. Name of Corporate Person Date of Date of Realisation Amount due Amount paid Liquidation Surplus
No. Commencement Dissolution of Assets to Creditors to Creditors Expenses
Part A: Prior Period (Till December 31, 2019)
1 Saveair India Private Limited 23-03-18 05-09-19 0.52 - - 0.03 0.49
2 Asahi Organic Chemicals India Private Limited 29-03-18 17-10-19 1.79 0.14 0.14 0.37 1.28
3 Indipreneurs.com Private Limited 17-09-18 18-11-19 0.11 - - 0.02 0.09
4 Taarika Fashions Limited 29-03-18 17-12-19 0 - - 0 -
Part B: January - March, 2020
1 Parks Infoway Private Limited 24-02-18 02-01-20 0 - - 0 -
2 Sequent Specialty Chemicals Private Limited 31-03-18 06-01-20 0.02 - - 0.01 0
3 Innovairre India Venture Management Services Private Limited 12-11-17 08-01-20 0.03 - - 0 0.02
4 Innovairre India Direct Communication Private Limited 12-11-17 08-01-20 0.01 0.01 0.01 0 0
5 Manoj Stocks Private Limited 13-11-17 20-01-20 0.26 - - 0.01 0.25
6 Disha E-Consultancy Services Private Limited 19-04-18 22-01-20 0.57 - - 0.04 0.53
7 Citadel Trading India Private Limited 31-10-17 22-01-20 3.47 0.01 0.01 0.01 3.45
8 Acertis Cloud India Private Limited 23-04-18 23-01-20 0.12 - - 0.08 0.04
9 Vital Natural Resources Private Limited 30-11-18 28-01-20 0.12 - - 0.03 0.09
10 RSD Business Solutions Private Limited 17-10-19 31-01-20 0.03 - - 0.01 0.02
11 Louis Vuitton India Holding & Services Private Limited 12-03-19 31-01-20 18.38 - - 0.15 18.23
12 Synchronica Mobile Gateway Private Limited 05-12-17 12-02-20 0.04 - - 0.04 -
13 Selectron Systems Private Limited 23-04-18 18-02-20 0.32 - - 0.29 0.03
14 Amansa Investment Advisors Private Limited 30-08-18 17-03-20 4.10 - - 0.39 3.71
15 ITP Technical Services Private Limited 05-02-18 20-03-20 0.31 - - 0.09 0.22
Total 30.2 0.16 0.16 1.57 28.45
Summary of Outcomes rescued at these stages. Only a few companies, who fail to address the
distress in any of these stages, reach the liquidation stage. At this stage, the
(a) The rst order objective of the Code is rescuing life of a CD in distress.
value of the CD is substantially eroded, and hence some of them are
It has rescued 221 CDs till March, 2020 through resolution plans. They
rescued, and others liquidated. The recovery may be low at this stage, but
owed `4.13 lakh crore to creditors. However, the realisable value of the
recovery in early stages of distress is much higher, and it is primarily
assets available with them, when they entered the CIRP, was only `0.96
because of the Code.
lakh crore. The Code maximises the value of the existing assets, not of the
assets which do not exist. Under the Code, the creditors recovered `1.84 (e) The Code endeavours to close the various processes at the earliest. It
lakh crore, which is about 191% of the realisable value of these CDs. Any prescribes timelines for some of them. The 221 CIRPs, which have
other option of recovery or liquidation would have recovered at best yielded resolution plans by the end of March, 2020, took on average 375
`100 minus the cost of recovery/liquidation, while the creditors days (after excluding the time excluded by the AA) for conclusion of
recovered `191 under the Code. The excess recovery of `91 is a bonus process. Similarly, the 914 CIRPs, which ended up in orders for
from the Code. Recovery is incidental under the Code. Yet, the recovery liquidation, took on average 309 days for conclusion. Further, 69
for FCs, as compared to their claims, is about 46%. This only reects the liquidation processes, which have closed by submission of nal reports till
extent of value erosion by the time the CDs entered CIRP. March 31, 2020, took on average 270 days for closure. Similarly, 202
voluntary liquidation processes, which have closed by submission of nal
(b) Although the Code has rescued 221 CDs, it has sent 914 CDs to
reports, took on average 315 days for closure.
liquidation. It is important to note that the CDs rescued had assets valued
at `0.96 lakh crore, while the 879 CDs (for which data are available)
referred for liquidation had assets valued at `0.36 lakh crore when they Individual Processes
entered the CIRP. Thus, in value terms, around three fourth of distressed The provisions relating to insolvency resolution and bankruptcy relating
assets have been rescued. Of the CDs rescued, one-third were either to personal guarantors (PGs) to CDs came into force on December 1,
defunct or under BIFR, and of the CDs sent for liquidation, three-fourth 2019. As per the information received from IPs, three applications have
were either defunct or under BIFR. been led under these provisions, before the AA by the end of March,
( c) Of the total CDs ending up with orders for liquidation, data in respect 2020. One application has been led by a PG under section 94 of the Code
of 879 CDs are available. These had an aggregate claim of `5.16 lakh in Amravati Bench of the AA and other two applications have been led by
crore. Unfortunately, they had assets, on the ground, valued only at `0.36 the creditors under section 95 of the Code in Ahmedabad bench of AA.
lakh crore. Many such CDs did not have any job or asset when they
entered the IBC process. Till March 31, 2020, 69 have been completely
liquidated. These had outstanding claims of `10,402 crore, but the assets
Service Providers
valued at `108 crore. These included Ghotaringa Minerals Limited and Insolvency Professionals
Orchid Healthcare Private Limited, which owed `8,163 crore, while they An individual, who is enrolled with an IPA as a professional member and
had absolutely no assets and employment. has the required qualication and experience and passed the Limited
(d) A distressed asset has a life cycle. Its value gradually declines with time Insolvency Examination, is registered as an IP. An IP needs an AFA to take
if distress is not addressed. The credible threat of the Code, that a CD up an assignment under the Code with effect from January 1, 2020. IBBI
may change hands, has changed the behaviour of debtors. Thousands of made available an online facility from November 16, 2019 to enable an IP
debtors are settling defaults at early stages of the life cycle of a distressed to make an application for AFA to the IPA, and an IPA to process such
asset. They are settling when default is imminent, on receipt of a notice applications electronically. The details of IPs registered as on March 31,
for repayment but before ling an application, after ling application but 2020 and AFAs held by them, IPA-wise, is presented in Table 20. A
before its admission, and even after admission of the application, and geographical distribution of IPs as on March 31, 2020 is presented in
making best effort to avoid consequences of IBC process. Most CDs are Figure 1.
Table 20: Registered IPs and AFAs as on March 31, 2020 (Number) Table 22: Distribution of IPs as per their Eligibility
City / Region Registered IPs IPs having Authorisation Eligibility No. of Ips
for Assignment Male Female Total
IIIP of ICSI IPA of Total IIIP of ICSI IPA of Total Member of ICAI 1507 135 1642
ICAI IIP ICMAI ICAI IIP ICMAI
Member of ICSI 460 88 548
New Delhi 366 230 65 661 251 158 49 458
Member of ICMAI 150 12 162
Rest of Northern Region 301 167 45 513 207 120 30 357
Member of Bar Council 178 21 199
Mumbai 343 118 32 493 220 75 26 321
Managerial Experience 440 18 458
Rest of Western Region 216 93 30 339 140 66 22 228
Total 2735 274 3009
Chennai 116 78 11 205 61 56 7 124
Rest of Southern Region 294 163 46 503 193 107 37 337 The Regulations provide that an IP shall be eligible to obtain an AFA if he
Kolkata 171 34 17 222 123 19 13 155 has not attained the age of 70 years. Table 23 presents the age prole of
Rest of Eastern Region 50 18 5 73 30 13 3 46 the IPs registered as on March 31, 2020.
Total Registered 1857 901 251 3009 1225 614 187 2026 Table 23: Age Prole of IPs (Number)
Age Group (in Years) IIIP ICAI ICSI IIP IPA of ICMAI Total
≤ 40 220 72 4 296
Figure 1 : Geographical Distribution of IPs as on March 31, 2020
> 40 ≤ 50 660 317 46 1023
> 50 ≤ 60 596 244 60 900
JAMMU & > 60 ≤ 70 355 241 134 730
KASHMIR
HIMACHAL
3 PRADESH > 70 ≤ 80 22 24 7 53
3 ARUNACHAL
PUNJAB
UTTARA KHAND
PRADESH > 80 ≤ 90 3 3 0 6
82 1
1 ASSAM > 90 1 0 0 1
HARYANA DELHI 11
149 661 Total 1857 901 251 3009
UTTAR PRADESH BIHAR
RAJASTHAN 5
Panel for Administrators

154
67
AM
ASS
GUJARAT
144
In accordance with the Guidelines for Appointment of Insolvency
MADHYA
JHARKHAND
7
Professionals as Administrators under the Securities and Exchange Board
PRADESH
53
WEST
BENGAL of India (Appointment of Administrator and Procedure for Refunding to
DADAR AND
NAGAR HAVELI
238
CHHATTISGARH the Investors) Regulations, 2018, IBBI prepared the panel of IPs having
1
ODISHA
13
AFAs for appointment as Administrators during April - September, 2020
MAHARASHTRA
618 TELANGANA
33
and shared the same with SEBI. Table 24 presents zone wise number of
GOA
ANDHRA
217
IPs empaneled for the period from April- September, 2020.
3 PRADESH Table 24: Zone-wise Number of IPs in the Panel
30
KARNATAKA
127
Zone No. of Ips
New Delhi 169
PONDICHERRY
KERALA
1 Mumbai 96
41
TAMILNADU Kolkata 63
292
Chandigarh 61
Chennai 58
Hyderabad 53
Of the 3014 IPs registered till date, registrations of four IPs have been Ahmedabad 45
Allahabad 40
cancelled after due disciplinary process and registration of one IP was
Bengaluru 24
cancelled on failing to full the requirement of t and proper person Jaipur 19
status. The registrations and cancellations of registrations IPs, quarter Cuttack 14
wise, till March 31, 2020 are presented in Table 21. Kochi 12
Table 21: Registration and Cancellation of Registrations of IPs Amravati 5
Quarter No. of Ips Total 659
Registered Cancelled Registered at the
End of the Quarter Replacement of IRP with RP
Jan - Mar, 2017 96 0 96 Section 22(2) of the Code provides that the CoC may, in its rst meeting,
Apr - Jun, 2017 450 0 546 by a majority vote of not less than 66% of the voting share of the FCs,
Jul - Sep, 2017 561 0 1107 either resolve to appoint the IRP as the RP or to replace the IRP by
Oct - Dec, 2017 217 0 1324
another IP to function as the RP. Under section 22(4) of the Code, the AA
Jan - Mar, 2018 488 0 1812
shall forward the name of the RP, proposed by the CoC, under section
Apr - Jun, 2018 71 1 1882
Jul - Sep, 2018 154 1 2035
22(3)(b) of the Code, to IBBI for its conrmation and shall make such
Oct - Dec, 2018 253 1 2287
appointment after such conrmation. However, to save time in such
Jan - Mar, 2019 170 1 2456 reference, a database of all the IPs registered with the IBBI has been
Apr - Jun, 2019 203 0 2663 shared with the AA, disclosing whether any disciplinary proceeding is
Jul - Sep, 2019 128 0 2791 pending against any of them and the status of their AFAs. While the
Oct - Dec, 2019 124 0 2915 database is currently being used by various benches of AA, in a few cases,
Jan - Mar, 2020 99 1 3009 IBBI receives references from the AA and promptly responds to the AA.
Total 3014 5 3009 Till March 31, 2020, as per updates available, a total of 826 IRPs have been
An individual with 10 years of experience as a member of the ICAI, ICSI, replaced with RPs, as shown in Table 25.
Table 25: Replacement of IRP with RP as on March 31, 2020
ICMAI or as an advocate enrolled with a State Bar Council or an individual
CIRP initiated by No. of CIRPs
with 15 years’ of experience in management is eligible for registration as
Where RPs have Where RP is
an IP on passing the Limited Insolvency Examination. Table 22 presents been appointed different from the IRP
distribution of IPs as per their eligibility (an IP may be a member of more Corporate Applicant 230 98
than one Institute) as on March 31, 2020. Of the 3009 IPs as on March 31, Operational Creditor 1229 431
2020, 274 IPs (constituting about nine per cent of the total registered IPs) Financial Creditor 1172 297
are female. Total 2631 826

Insolvency Professional Entities Insolvency Professional Agencies
During the quarter under review, four IPEs were recognised and two IPEs IPAs are frontline regulators and responsible for developing and regulating the
were derecognised. As on March 31, 2020, there were 69 IPEs (Table 26). profession of IPs. There are three IPAs registered in accordance with the
Table 26: IPEs as on March 31, 2020 provisions of the IPA Regulations. IBBI meets MDs / CEOs of IPAs on 7th of every
Quarter No. of IPEs month to discuss the issues arising from the IP profession and to energise them
Recognised Derecognised At the end to discharge their responsibilities. The IPAs are conducting pre-registration
of the Quarter educational courses for prospective IPs and roundtables and seminars,
Jan - Mar, 2017 3 0 3 workshops and webinars for building capacity of IPs. They are monitoring
Apr - Jun, 2017 14 0 17 disclosures by IPs in respect of relationship and fee and expenses of CIRPs and
Jul - Sep, 2017 22 1 38 the ling of CIRP forms by their members. They conduct and monitor CPE of
Oct - Dec, 2017 18 0 56 their members. They issue AFAs to IPs who are their members.
Jan - Mar, 2018 19 0 75
Apr - Jun, 2018 1 3 73 Information Utility
Jul - Sep, 2018 4 4 73
Oct - Dec, 2018 3 20 56
There is one IU, namely, the National E-Governance Service Limited (NeSL).
Jan - Mar, 2019 5 13 48
IBBI meets the MD & CEO of the IU along with the CEOs of IPAs on 7th of
Apr - Jun, 2019 6 0 54 every month to discuss the issues related to receipt and authentication of
Jul - Sep, 2019 7 0 61 nancial information. It has requested IPAs to encourage their members to
Oct - Dec, 2019 6 0 67 make use of the information stored with the IU for verication of claims during
Jan - Mar, 2020 4 2 69 CIRP. Table 27 provides details of the registered users and information with
Total 112 43 69 NeSL, as informed by them.
Table 27: Details of information with NeSL (Number, except as stated)
At the end of quarter Creditors having Creditors who Debtors whose Loan records User Loan records Amount of
agreement have submitted information on-boarded registrations authenticated underlying debt
with NeSL information is submitted by by- (debtors) by debtors (Rs. crore)
FCs OCs FCs OCs FCs OCs FCs OCs FC & OC FCs OCs FCs OCs
Jun, 2018 66 NA 21 105 69184 52 191247 105 1034 1364 05 NA NA
Sep, 2018 85 NA 40 144 836302 135 1222737 207 5121 6079 32 2016708 530
Dec, 2018 108 NA 68 140 980724 202 1438390 280 10291 10065 35 2732805 1094
Mar, 2019 173 NA 114 169 1266445 230 1955230 316 15148 13762 37 4114988 16224
Jun, 2019 209 NA 160 231 2531930 570 3911146 52766 23565 22323 40 4910552 20455
Sep, 2019 226 NA 218 297 2737049 1764 4421280 86766 32177 35560 61 5625318 28016
Dec, 2019 246 NA 321 408 2926030 2121 4803931 125526 48551 68646 120 6919463 32038
Mar, 2020 267 NA 381 543 6551739 6191 9417317 167719 73332 109505 221 7873689 31910
NA: Not Available
Registered Valuer Organisations Figure 2 : Geographical Distribution of RVs as on March 31, 2020
The Registered Valuer Organisations (RVOs) are frontline regulators for
registered valuers. They provide the institutional arrangement for JAMMU &
KASHMIR
HIMACHAL
oversight, including the development and regulation of the registered 5
PUNJAB
PRADESH
2
valuers (RVs). They grant membership to valuers, who comply with the 73 UTTARA KHAND ASSAM
eligibility requirements as provided in the Rules, conduct the educational HARYANA DELHI
14
12
BIHAR
93 225
courses in valuation and provide the training for the individual members. RAJASTHAN
UTTAR PRADESH
4
SIKKIM
With recognition of Nandadeep Valuers Foundation as an RVO on March 87 143 1

ASS
AM
17, 2020, there are a total of 12 RVOs as on March 31, 2020. IBBI meets GUJARAT
MDs / CEOs of RVOs on the 7th of every month to discuss the issues arising
319 JHARKHAND
5 TRIPURA
MADHYA 1
from the valuation profession, to resolve queries of the RVOs and to guide PRADESH
68
WEST
BENGAL
them in discharge of their responsibilities. 110

CHHATTISGARH
16
ODISHA
Only RVs are authorised to undertake valuations required under the MAHARASHTRA 14
Companies Act, 2013 and the Code. The details of RVs, RVO-wise, as on 598 TELANGANA
163
GOA
March 31, 2020, is given in Table 28. In addition, there are 12 entities 20
ANDHRA
PRADESH
(Partnership Entity / Company) registered as RVs as on March 31, 2020. A KARNATAKA

182
120
geographical distribution of RVs as on March 31, 2020 is presented in ANDAMAN

PONDICHERRY & NICOBAR
ISLANDS
Figure 2. KERALA 28
2
72 TAMILNADU
Table 28: Registered Valuers as on March 31, 2020 (Number) 653
Registered Valuer Organisation Asset Class Total

Land & Plant & Securities or
Building Machinery Financial Assets
Institution of Estate Managers and Appraisers 45 8 5 58 The registration of RVs, quarter-wise, till March 31, 2020 is given in Table 29.
IOV Registered Valuers Foundation 1012 160 115 1287 Table 29: Registration of RVs till March 31, 2020 (Number)
ICSI Registered Valuers Organisation 0 0 116 116 Quarter Land & Plant & Securities or Total
The Indian Institution of Valuers 105 33 32 170 Building Machinery Financial Assets
ICMAI Registered Valuers Organisation 13 12 187 212 Apr - Jun, 2018 1 2 0 3
ICAI Registered Valuers Organisation NA NA 568 568 Jul - Sep, 2018 38 13 21 72
PVAI Valuation Professional Organisation 244 45 33 322 Oct - Dec, 2018 280 43 118 441
CVSRTA Registered Valuers Association 169 51 NA 220 Jan - Mar, 2019 462 63 145 670
Association of Certied Valuators and Analysts NA NA 1 1 Apr - Jun, 2019 346 81 300 727
CEV Integral Appraisers Foundation 38 13 0 51 Jul - Sep, 2019 212 58 191 461
Divya Jyoti Foundation 3 3 19 25 Oct - Dec, 2019 161 34 146 341
Nandadeep Valuers Foundation 0 0 0 0 Jan - Mar, 2020 129 31 155 315
Total 1629 325 1076 3030 Total 1629 325 1076 3030

Of the RVs registered as on March 31, 2020, 880 RVs (constituting 29% of Table 31: Age prole of Rvs (Number)
Age Group (in years) Land & Plant & Securities or Total
the total RVs registered) are from metros while 2150 RVs (constituting Building Machinery Financial Assets
71% of the total RVs registered) are from non-metro locations (Table 30). ≤ 30 71 5 97 173
Table 30: Region wise Registered Valuers as on March 31, 2020 (Number) > 30 ≤ 40 223 50 416 689
City / Region Land & Plant & Securities Total > 40 ≤ 50 475 77 307 859
Building Machinery or Financial
Assets > 50 ≤ 60 691 99 186 976
New Delhi 61 27 137 225 > 60 ≤ 70 144 69 69 282
Rest of Northern Region 217 40 170 427 > 70 ≤ 80 24 24 1 49
Mumbai 96 46 178 320 > 80 1 1 0 2
Rest of Western Region 455 85 160 700 Total 1629 325 1076 3030
Chennai
Rest of Southern Region
102
654
30
81
104
247
236
982
Complaints and Grievances
Kolkata 18 13 68 99 IBBI (Grievance and Complaint Handing Procedure) Regulations, 2017
Rest of Eastern Region 26 3 12 41 enable a stakeholder to le a grievance or a complaint against a service
Total 1629 325 1076 3030
provider. Beside this, grievance and complaints are received from the
The average age of RVs as on March 31, 2020 stood at 48 years across Centralised Public Grievance Redress and Monitoring System
asset classes. It was 50 years for Land & Building, 53 years for Plant & (CPGRAMS), Prime Minister’s Ofce, MCA and other authorities. The
Machinery and 43 years for Securities or Financial Assets (Table 31). Of receipt and disposal of grievances and complaints till March 31, 2020 is
the 3030 RVs as on March 31, 2020, 267 RVs (constituting about nine per given in Table 32.
cent of the total registered valuers) are females.
Table 32: Receipt and Disposal of Grievances and Complaints till March 31, 2020 (Number)
Period Complaints and Grievances Received Total
Under the Through CPGRAM/PMO/MCA/ Through Other Received Disposed Under
Regulations Other Authorities Modes Examination
Received Disposed Received Disposed Received Disposed
2017 - 18 18 0 6 0 22 2 46 2 44
2018 - 19 111 51 333 290 693 380 1137 721 460
Apr - Jun, 2019 36 21 60 74 149 207 245 302 403
Jul - Sep, 2019 42 41 46 35 67 36 155 112 446
Oct - Dec, 2019 40 46 68 54 71 86 179 186 439
Jan - Mar, 2020 35 69 65 64 74 59 174 192 421
Total 282 228 578 517 1076 770 1936 1515 421
across India. Enrolments for the Examination were suspended from

Examinations March 23, 2020 on account of COVID-19 outbreak. The details of the
Limited Insolvency Examination Examinations are given in Table 34.
Table 34: Valuation Examinations
IBBI publishes the syllabus, format, etc. of the Limited Insolvency
Phase/Quarter No. of Attempts No. of Successful Attempts
Examination (Examination) under regulation 3(3) of the IP Regulation. It (some candidates made in Asset Class
reviews the Examination continuously to keep it relevant with respect to more than one attempt)
in Asset Class
dynamics of the market. It has successfully completed four phases of the Land & Plant & Securities or Land & Plant & Securities or
Examination. Fourth phase of the Examination concluded on June 30, Building Machinery Financial Building Machinery Financial
Assets Assets
2019 and fth phase commenced on July 1, 2019. The Examination is
First Phase 9469 1665 4496 1748 324 707
available on daily basis from various locations across the country. (Mar, 2018 - Mar, 2019)
Enrolments for the Examination were suspended from March 23, 2020 Second Phase 626 154 1155 49 16 143
(Apr - Jun, 2019)
on account of COVID-19 outbreak. The details of the Examination are
Second Phase 994 187 1426 96 23 195
given in the Table 33. (Jul - Sep, 2019)
Table 33: Limited Insolvency Examination Second Phase 1142 230 988 123 27 144
Phase No. of Attempts No. of (Oct - Dec, 2019)
(some candidates made Successful Second Phase 1018 186 1226 112 29 174
more than one attempt) Attempts (Jan - Mar, 2020)
First Phase (Jan - Jun, 2017) 5329 1202 Total 13249 2422 9291 2128 419 1363
Second Phase (Jul - Dec, 2017) 6237 1112
Third Phase (Jan - Oct, 2018) 6344 1011 IBBI, being the Authority, published the syllabus and format of the
Fourth Phase (Nov, 2018 - Jun, 2019) 3025 506 Valuation Examinations for 3rd Phase to commence on June 1, 2020.
Fifth Phase (Jul - Sep, 2019) 710 95
Fifth Phase (Oct - Dec, 2019)
Fifth Phase (Jan - Mar, 2020)
889
1007
119
164
Building Ecosystem
Total 23541 4209
Committees and Working Groups
Valuation Examinations Meeting of Committee on Cross Border Insolvency
IBBI, being the authority, under the Companies (Registered Valuers and The Cross-Border Insolvency Rules/Regulations Committee (CBIRC)
Valuation) Rules, 2017, commenced the Valuation Examinations for asset chaired by Dr. K. P. Krishnan had three meetings on February 7, 2020,
classes of: (a) Land & Building, (b) Plant & Machinery and (c) Securities or February 25, 2020 and March 4, 2020. It discussed various aspects of
Financial Assets on March 31, 2018. The rst phase concluded on March cross border insolvency delegated legislation and procedural matters,
31, 2019 and the second phase commenced on April 1, 2019. It is a along with the interplay of various laws in dealing with cross border
computer based online examination available from several locations insolvency cases.

Meeting of the Committee on Cross Border Insolvency, Workshop on Insolvency and Bankruptcy of PGs to
February 7, 2020 CDs at Hyderabad, January 25, 2020
Meeting of WG on Individual Insolvency

The WG on Individual Insolvency and Bankruptcy, chaired by
Mr. P. K. Malhotra, held its 12th meeting on January 22, 2020. It deliberated
and decided on the aspects of implementation of the fresh start process
(FSP). Considering the infrastructure and cost of litigations, it also
discussed on various ways of simplied, non-adjudicatory, online FSP
process meant for small debtors.
6th Advanced IP workshop at Hyderabad, February 7 - 8, 2020
Webinar
IBBI, in association with ICSI IIP, organised a webinar on “Case study of
successful resolution of Ruchi Soya Industries Ltd.” on March 20, 2020.
Dr. M. S. Sahoo, Chairperson, IBBI, in his address, discussed the trying
Meeting of the Working Group on Individual Insolvency, times for humanity in the wake of outbreak of COVID-19 and enhanced
January 22, 2020 role of IPs as care givers for distressed companies. Further, the webinar
featured a detailed discussion on CIRP of Ruchi Soya Industries Ltd. with
Workshops and Webinars practical experience sharing by the resolution professional involved with
IP Workshops the matter and his team. Approximately 14,000 viewers participated in
the webinar.
IBBI has been organising Advanced Workshops for IPs with the aim to
Peer Review
impart specialised and in-depth level learning through a classroom, non-
residential mode. In continuation of these efforts, it organised the two IBBI, in association with ICAI RVO, organised a peer review workshop on
Advanced Workshops, the 5th and 6th in the series, for IPs during the February 14, 2020 to share a review of valuation reports.
quarter on the theme 'Forensic Audit and Valuation'. It also organised four
workshops for IPs on the recently notied provisions relating to Advocacy and Awareness
insolvency and bankruptcy of PGs to CDs as detailed in Table 35.
Table 35: IP Workshops
IBBI organised several advocacy and awareness programmes during the
Sl. Date(s) Theme Place Partnership No. of
quarter on its own and in association with stakeholders or was associated
with, if any Participants with stakeholders in organising such programmes.
1 05-01-20 Rules and Regulations Mumbai 89
Programme for Income Tax Department
2 12-01-20 for Personal Jaipur 33
3 18-01-20 Guarantors to CDs Kolkata ICAI 49 With a view to increase the awareness and understanding of the
4 25-01-20 Hyderabad 77 provisions of the Code among income-tax ofcers, IBBI organised 45
5 24-01-20 to 25-01-20 Forensic Audit and Chennai IIIP of ICAI 37 awareness programmes at various locations across the country during the
6 07-02-20 to 08-02-20 Valuation Hyderabad IPA of ICMAI 3 last quarter.

Seminar on MSMEs and IBC
IBBI, in association with the FICCI, organised a Seminar on 'MSMEs and
Insolvency and Bankruptcy Code, 2016' at New Delhi on March 6, 2020.
The Seminar featured keynote address by Dr. M. S. Sahoo, Chairperson,
IBBI and two panel discussions on the themes, namely, 'MSMEs as
Debtors and the IBC', chaired by Mr. U. K. Sinha (Former Chairman, SEBI)
and 'MSMEs as Operational Creditors in corporate insolvency processes'
chaired by Mr. P. K. Malhotra (Former Law Secretary).
Awareness programme for income-tax ofcers at

Ludhiana, January 9, 2020
Programme for DRT and DRAT

With a view to increase the awareness on the newly notied rules and
regulations for personal guarantors to CDs with effect from December 1,
2019, IBBI, in association with the Department of Financial Service,
organised workshops at various locations across the country for ofcials
of the Debt Recovery Tribunals (DRT) and Debt Recovery Appellate
Tribunals (DRAT) during the last quarter. In the quarter January-March,
2020, two such workshops for the members and ofcers of DRT of
Guwahati, Siliguri, Ranchi and Patna were organised at Guwahati and Dr. M. S. Sahoo at the seminar on MSMEs & IBC at
Patna on February 1, 2020 and February 22, 2020 respectively. New Delhi, March 6, 2020
Awareness Programme at DRT Guwahati, February 1, 2020

Mr. U. K. Sinha at the seminar on MSMEs & IBC at
New Delhi, March 6, 2020
Other Programmes
In partnership with IBBI, various stakeholders organised advocacy and
awareness programmes as presented in Table 36.
Table 36: Advocacy and Awareness Programmes
Sl. Date Place Programme Partnership
1 31-01-20 Kota Awareness IPA of ICMAI
2 08-02-20 Hyderabad Workshop Jawahar Lal Nehru Institute of
Banking and Finance, Hyderabad
3 15-02-20 Kochi Awareness
4 22-02-20 Jaipur Awareness
5 29-02-20 Mumbai Awareness IPA of ICMAI
6 29-02-20 Hyderabad Awareness
7 29-02-20 New Delhi Colloquium
8 29-02-20 Kolkata Conclave EIRC of ICAI
Senior ofcers of IBBI participated as guests and faculty in several

Awareness Programme at DRT Patna, February 22, 2020
programmes during the quarter, the details of which are presented in
Table 37.

Table 37: Participation of Senior Ofcers in Programmes
Sl. Date Venue Organiser Programme Subject Participation
1 10-01-20 Mumbai Mumbai University Roundtable IBC Chairperson
2 10-01-20 Jaipur NeSL Seminar Knowledge Forum on IBC Mr. Shukla, WTM
3 16-01-20 New Delhi ICSI IIP Webinar IBC Amendment (Ordinance), 2019 Mr. Saji Kumar, ED
4 25-01-20 Manesar IICA Session Measuring IBC Impact Chairperson
5 27-01-20 New Delhi IIIP ICAI Webinar Online ling of CIRP Forms, etc. Dr. Saini, WTM
6 29-01-20 Chennai (Via VC) RBI Staff College, Chennai Training Role of IBBI in nancial sector and emerging issues Mr. Saji Kumar, ED
7 31-01-20 Pune IPA of ICAI Workshop Personal guarantors to CDs Dr. (Ms.) Vijayawargiya, WTM
8 01-02-20 Delhi IMT Conclave Contemporary Themes in Banking & Finance Chairperson
9 08-02-20 Hyderabad JNIBF Workshop IBC, 2016 - Current Perspective Mr. Saji Kumar, ED
10 10-02-20 London High Commission of India Conference Distressed Investment Markets in India Chairperson
11 10-02-20 London High Commission of India Panel Conversation with Government & Regulators Chairperson
12 10-02-20 Gandhinagar (Via VC) GNLU Colloquium Insolvency & Credit Risk Dr. (Ms.) Vijayawargiya, WTM
13 12-02-20 Mumbai Indian Chamber of Commerce Seminar IBC: Way Forward Mr. Kavdia, ED
14 21-02-20 Udaipur FOIR Conference Transparency & Accountability in Regulatory Framework Chairperson
15 21-02-20 Udaipur IICA Colloquium Inter Sector Co-ordination among Infrastructure Regulators Chairperson
16 22-02-20 Udaipur IOV RVO Seminar Valuation Profession under Regulated Regime Chairperson
17 22-02-20 Indore ICAI Conference IBC: A Game Changer Dr. (Ms.) Vijayawargiya, WTM
18 28-02-20 Kolkata CII Conference IBC: Measuring the Success Dr. Saini, WTM
19 29-02-20 Kolkata ICAI Conclave IBC Dr. Saini, WTM
20 29-02-20 New Delhi IPA of ICAI Colloquium Insolvency and Bankruptcy of PGs to CD, etc. Dr. (Ms.) Vijayawargiya, WTM
21 06-03-20 New Delhi NCLAT Colloquium Rescuing Lives: IBC Way Chairperson
22 06-03-20 New Delhi FICCI Seminar MSME & IBC Chairperson
23 07-03-20 New Delhi NCLAT Colloquium IBC Ecosystem Chairperson
24 07-03-20 New Delhi ICMAI Conclave International women’s day Dr. (Ms.) Vijayawargiya, WTM
25 13-03-20 New Delhi IBC Process Mr. Shukla, WTM
RIPA Workshop
26 14-03-20 New Delhi Inspection of IPs Mr. Debajyoti Ray Chaudhuri, CGM
27 20-03-20 New Delhi ICSI IIP Webinar Case Study of Successful Resolutions Chairperson
Colloquium on Insolvency and Bankruptcy process of PGs

CII Conference in Kolkata on February 28, 2020
to CDs at New Delhi, February 29, 2020
degree360solutions.com
Mr P.K.Malhotra at the seminar on MSMEs & IBC at Seminar on MSMEs & IBC at New Delhi, March 6, 2020
New Delhi, March 6, 2020
Disclaimer: This Newsletter is meant for the sole purpose of creating awareness and must not be used as a guide for taking or recommending any action or decision, commercial or otherwise.
The reader must do his own research or seek professional advice if he intends to take any action or decision in any matter covered in this Newsletter.
Insolvency and Bankruptcy Board of India

www.ibbi.gov.in

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The Quarterly Newsletter of the Insolvency and Bankruptcy Board of India January - March, 2020 | Vol.

Legal and Regulatory Framework

Measures in the wake of COVID-19

Insolvency and Bankruptcy Board of India

• Limited Insolvency Examination

Advocacy and Awareness _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 25

Insolvency and Bankruptcy News 2

NCLAT and NCLT Colloquium at New Delhi on March 7, 2020

3 Insolvency and Bankruptcy News

the same. Citing examples of permanent commission in the armed forces,

Workshop on Cross Border Insolvency, January 20, 2020

Contribution to PM-CARES Fund

Insolvency and Bankruptcy News 4

The ofcers of IBBI attended the following workshops and training

Talk by Dr. Arghya Sengupta, February 20, 2020

Legal And Regulatory

5 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 6

7 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 8

9 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 10

11 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 12

13 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 14

15 Insolvency and Bankruptcy News

Table 2: Sectoral Distribution of CDs under CIRP as on March 31, 2020

Withdrawals under Section 12A

Insolvency and Bankruptcy News 16

17 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 18

19 Insolvency and Bankruptcy News

Insolvency and Bankruptcy News 20

Panel for Administrators

Insolvency and Bankruptcy News 22

With recognition of Nandadeep Valuers Foundation as an RVO on March 87 143 1

them in discharge of their responsibilities. 110

(Partnership Entity / Company) registered as RVs as on March 31, 2020. A KARNATAKA

geographical distribution of RVs as on March 31, 2020 is presented in ANDAMAN

Registered Valuer Organisation Asset Class Total

23 Insolvency and Bankruptcy News

across India. Enrolments for the Examination were suspended from

Insolvency and Bankruptcy News 24

Meeting of WG on Individual Insolvency

6th Advanced IP workshop at Hyderabad, February 7 - 8, 2020

25 Insolvency and Bankruptcy News

Awareness programme for income-tax ofcers at

Programme for DRT and DRAT

Awareness Programme at DRT Guwahati, February 1, 2020

Senior ofcers of IBBI participated as guests and faculty in several

Insolvency and Bankruptcy News 26

Colloquium on Insolvency and Bankruptcy process of PGs

Insolvency and Bankruptcy Board of India

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