IndiaLaw LLP

In India, the Insolvency and Bankruptcy Code, 2016 is one matured step towards settling the legal position with respect to financial failures and insolvency. To provide easy exit with a painless mechanism in cases of insolvency of individuals as well as companies, the code has significant value for all stakeholders including various Government Regulators. Introduction of this Code has done away with overlapping provisions contained in various laws – Sick Industrial Companies (Special Provisions) Act 1985, The Recovery of Debts Due to Banks and Financial Institutions Act 1993, The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, and The Companies Act, 2013. Before the enactment of this Code, there were multiple agencies dealing with the matters relating to debt, defaults, and insolvency which generally leads to delays, complexities and higher costs in the process of Insolvency resolution. The ‘Board for Industrial and Financial R...

The constraints of expatriate life make it challenging for a lot of Non-residential Indians (NRIs) to deal with situations, which are beyond their reach and control. One such situation is of course the handling of legal proceedings.  The legal ecosystem in India can discourage even those living in the country, considering the pendency and the hassles-- the delays, the appearances, the bureaucracy, the hearings, the adjournments, and the corruption. All this along with the constraints of non-residents having to travel back and forth to India and limitations of resources or time requires special legal assistance especially crafted for NRIs. And more so because legal cases involving NRIs may require engagement with multiple areas of law and dealing with the Indian authorities. For instance, they need advice on a hoard of subjects, ranging from investments, to regulatory and compliance, real estate acquisition and documentation, and dispute resolution.  NRIs should be able...

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. In a market with ever-changing policies, the management of risk and creation of value to ensure the bank-ability of projects requires not only excellent contract drafting skills but also a robust understanding of the law and regulations affecting a project, together with deep industry knowledge.  Practitioners in this area should be adept at handling a wide portfolio of projects and tasks, including Public private partnership projects; concession agreements; engineering, procurement and construction contracts; construction contracts; and operations and management contracts. Further, these practitioners should be equipped to represent developers & project owners, a...

India has finally brought in an effective Mechanism for initiating insolvency proceedings against the Financially defaulting Companies by way of The Insolvency and Bankruptcy Code, 2016. The IBC offers a standardized, comprehensive financial condition legislation encompassing all corporations, partnerships and Sole Proprietorship. The Code provides that where a corporate debtor has defaulted in paying a debt that has become due and payable but not repaid, the corporate insolvency resolution process may be initiated in the manner as provided in this Chapter in respect of such corporate debtor by a financial creditor, an operational creditor or the corporate debtor itself. Naturally, the processes are complicated and the stakes are high. This increases the necessity of expertise being sought from firms or individuals with requisite experience to handle such cases and do what is best for their clients. Not everybody can advice and resolve matters involving multiple stakeholders with...

Business failure is an integral part of any economy. If the failure is a result of a wrong business model or fraud, then a quick liquidation may be the most viable outcome.  However, there may be situations such as while the business is generating revenue, the company is still failing to pay debt. This may due to a wrong financial model resulting into a mismatch between receivable and payable of the entity. A debt restructuring may be an effective resolution under such situation rather than liquidation. Success of a bankruptcy regime depends up on its ability to strike a balance between liquidation and restructuring. The erstwhile bankruptcy regime in India failed to create such a balance. Instead of extending support to a genuine entrepreneur who is on a financial stress, the lenders and other creditors attacked such businessman with multiple legal actions such as proceedings under SARFAESI Act for taking possession of secured properties; filing cases before debt recovery tribu...