A high-level panel on IBC review may stick to 270-day resolution deadline
A high-level panel set up to review the Insolvency and Bankruptcy Code (IBC) is likely to have recommended against extending a 270-day moratorium for restructuring a company after its case is admitted by the National Company Law Tribunal (NCLT). The committee submitted its report to the government on Monday. There is a demand for relaxing the moratorium since the litigation initiated by various parties comes in the way of restructuring a company and delay the process. According to IBC norms, restructuring a company has to conclude within 180 days after an insolvency case is admitted by the NCLT.
PNB scam fallout: NCLT reserves order in the Gitanjali Gems case
A bench of the National Company Law Tribunal (NCLT) here on Monday reserved its order in the Gitanjali Gems case, in an application by the latter’s (former) independent directors (IDs) for relief. These IDs of the scam-hit Nirav Modi and Mehul Choksi-owned jewellery companies have been summoned by investigators in connection with the letters of undertaking (LoU) scandal. The IDs involved include Gautham Mukkavilli, formerly of PepsiCo, Suresh Senapaty, who used to work with Wipro, and Sanjay Rishi of American Express. Investigators at the enforcement directorate, income tax department and Central Bureau of Investigation, as well as at the Serious Fraud Investigation Office, have been looking into the activities of several current and former employees, including the IDs on the board.
Sebi plans new framework to check non-compliance of listing rules
Sebi plans to put in place a stronger mechanism to check non-compliance of listing conditions, wherein exchanges will have powers to freeze promoter shareholding and even delist the shares of such defaulting companies. The proposal would be discussed at the board meeting of the Securities and Exchange Board of India (Sebi) this week, senior officials said. Under the proposed framework, exchanges would have the power to freeze the entire shareholding of the promoter and promoter group in non-compliant listed entity also holding in other securities, they added.
Stage set for E-Way Bill from April 1
With less than a week left for the implementation of the much-delayed E-Way Bill across the country, tax officials and businesses seem to be well prepared this time around. “The IT system is fully geared up for the E-Way Bill. It has been thoroughly checked and can handle a much higher load,” said Prakash Kumar, Chief Executive Officer, GST Network (GSTN), adding that it has also gone through multiple rounds of testing. The software for the E-Way Bill is being developed by the National Informatics Company and is being monitored by the GSTN.
No clarity yet on time-barred debts under IBC
The question whether the Limitation Act, 1963, is applicable to the proceedings under the IBC, has been raised a number of times, over the past several months. Essentially, the Limitation Act says that if suits to recover debts are not filed within three years (normally) from the default, then they become time-barred. But varying rulings by the National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and the Supreme Court have resulted in ambiguity over the matter. This can lead to insolvency applications, even in cases where the debt is time-barred. The question of whether in case of time-barred debt, a creditor can invoke IBC, arose in the case of Neelkanth Township and Construction Pvt Ltd Vs. Urban Infrastructure Trustees Ltd, in 2017.
About the Author
