INSOLVENCY AND BANKRUPTCY

Question

In Which court one should File Insolvnecy and Bankruptcy case in Karnataka

Vidhikarya · Accepted Answer

The Insolvency And Bankruptcy Code 2016 - Key HighlightsDear SirThe provisions of  Bankruptcy and insolvency Act may be used to get relevant certificate. The highlights of the Act are as follows followed by a link.KEY HIGHLIGHTS1. Corporate Debtors Two-Stage ProcessTo initiate an insolvency process for corporate debtors the default should be at least INR Ten lakhs which limit may be increased up to INR Ten lakhs by the Government. The Code proposes two independent stagesInsolvency Resolution Process during which financial creditors assess whether the debtors business is viable to continue and the options for its rescue and revival andLiquidation if the insolvency resolution process fails or financial creditors decide to wind down and distribute the assets of the debtor.a The Insolvency Resolution Process IRPThe IRP provides a collective mechanism to lenders to deal with the overall distressed position of a corporate debtor. This is a significant departure from the existing legal framework under which the primary onus to initiate a reorganisation process lies with the debtor and lenders may pursue distinct actions for recovery security enforcement and debt restructuring.The Code envisages the following steps in the IRPi Commencement of the IRPA financial creditor for a defaulted financial debt or an operational creditor for an unpaid operational debt can initiate an IRP against a corporate debtor at the National Company Law Tribunal NCLT.The defaulting corporate debtor its shareholders or employees may also initiate voluntary insolvency proceedings.ii MoratoriumThe NCLT orders a moratorium on the debtors operations for the period of the IRP. This operates as a calm period during which no judicial proceedings for recovery enforcement of security interest sale or transfer of assets or termination of essential contracts can take place against the debtor.iii Appointment of Resolution ProfessionalThe NCLT appoints an insolvency professional or Resolution Professional to administer the IRP. The Resolution Professionals primary function is to take over the management of the corporate borrower and operate its business as a going concern under the broad directions of a committee of creditors. This is similar to the approach under the UK insolvency laws but distinct from the debtor in possession approach under Chapter 11 of the US bankruptcy code. Under the US bankruptcy code the debtors management retains control while the bankruptcy professional only oversees the business in order to prevent asset stripping on the part of the promoters.Therefore the thrust of the Code is to allow a shift of control from the defaulting debtors management to its creditors where the creditors drive the business of the debtor with the Resolution Professional acting as their agent.Part III of the Insolvency and Bankruptcy Code 2016 deals with insolvency and bankruptcy of individuals and partnership firms.According to a statement issued by IBBI on Tuesday the draft rules and regulations have been submitted by a working group which was formed to recommend the strategy and approach for implementation of the provisions of the Insolvency and Bankruptcy Code 2016 dealing with insolvency and bankruptcy in respect of guarantors to corporate debtors i.e. personal guarantors and individuals having businesses.httpwww.mondaq.comindiax492318InsolvencyBankruptcyTheInsolvencyAndBankruptcyCode2016KeyHighlightsToAll Registered Insolvency ProfessionalsAll Registered Insolvency Professional AgenciesBy mail to registered email addresses and on web site of the IBBIDear Madam  SirSub Fees payable to an insolvency professional and to other professionals appointed by an insolvency professional.Section 206 of the Insolvency and Bankruptcy Code 2016 Code provides that only a person registered as an insolvency professional with the Insolvency and Bankruptcy Board of India IBBI can render services as an insolvency professional under the Code. Section 23 read with section 527 of the Code requires that an insolvency professional who is appointed as an interim resolution professional or a resolution professional shall conduct the entire corporate insolvency resolution process including fast track process. In terms of section 513 of the Code the fees payable to any person acting as a resolution professional is included in insolvency resolution process cost which needs to be paid in priority.2. The Code of Conduct for Insolvency Professionals under the IBBI Insolvency Professionals Regulations 2016 require that an insolvency professional must provide services for remuneration which is charged in a transparent manner and is a reasonable reflection of the work necessarily and properly undertaken. He shall not accept any fees or charges other than those which are disclosed to and approved by the persons fixing his remuneration.3. In view of the above it is clarified that an insolvency professional shall render services for a fee which is a reasonable reflection of his work raise bills  invoices in his name towards such fees and such fees shall be paid to his bank account. Any payment of fees for the services of an insolvency professional to any person other than the insolvency professional shall not form part of the insolvency resolution process cost.4. Similarly any other professional appointed by an insolvency professional shall raise bills  invoices in his  its such as registered valuer name towards such fees and such fees shall be paid to his  its bank account.5. This circular is issued in exercise of powers under section 196 read with section 208 of the Insolvency and Bankruptcy Code 2016.Yours faithfully-Sd-I. Sreekara RaoDeputy General ManagerEmail sreekararaoibbi.gov.in

Vidhikarya · Answer

You need to file the case before National Company Law Tribunal before the Bench constituted to deal with said cases at Bangalore.

Vidhikarya · Answer

WRITE TO IBBI BOARD DIRECTLY IN THE GRIEVANCE PORTAL

Vidhikarya · Answer

You can approach banglore NCLT

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