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January 30, 2021

Over the Period of time, the Insolvency and Bankruptcy Code, 2016(Code), has largely been settled for the questions related to admission of any CIRP application; however there are requirement for clarifications on the post-admission stage procedure of the Code. One of the debated matters in the Code is the stipulatedtime limit for concluding the Corporate...

January 30, 2021

India’s dedicated bankruptcy court has admitted a loan default case against a corporate guarantor, sending a stern message to companies that pledging guarantees on behalf of a borrower is not a mere formality. “Corporate guarantee is no more to be presumed as a comfort undertaking as it leads to definite monetary obligations dragging the corporate guarantor into insolvency ambit,” said Babu Sivapra kasam, head of banking and Finance, at Economic Law Practice. “A corporate guarantor being admitted for insolvency proceedings will strengthen future lending transactions.” An Ahmedabad bench of National Company Law Tribunal (NCLT) has begun insolvency proceedings against Starch Maker Anil Ltd. after one of its associate companies, Anil Nutrients Ltd, defaulted a term loan disbursed by Reliance Commercial Finance. The lender, the demerged arm of Reliance Capital, had advanced Rs 10 crore term loan to Anil Nutrient Ltd. “The application filed by the applicant deserves to be admitted, “Bikki Raveendra Babu, judicial member at the NCLT Ahmedabad, said in the order that admitted the case against the guarantor. Anil Ltd. had planned to expand its specialty cattle feed manufacturing subsidiary Anil Nutrients Ltd in 2014 with an investment of Rs. 700 crore as per the press statement issued then. Anil Nutrients availed the loan facility on December three years ago, with Anil Ltd as the corporate guarantor. However, exactly after two years, Anil Nutrients Ltd and its guarantor Anil Ltd failed to repay Rs. 8.87 crore due to the lenders. Meanwhile, Reliance Capital learned that Anil Ltd owes huge amounts to other financial and operational creditors as well, as it has been making huge losses and is not in a position to clear its debts and liabilities. Ahmedabad bench of NCLT admitted starch maker Anil Ltd for insolvency proceedings as one of its associate company, Anil Nutrients, defaulted on a loan taken from Reliance Commercial Finance. Karishma Jaiswal Associate Maheshwari & Co. Karishma@maheshwariandco.com

It is interesting to note that in India, wherever provisions have been made for criminal prosecution for violation of any Intellectual Property Rights, a criminal case can be filed against known as well as unknown persons. It is also important to note that both civil and criminal remedies, wherever applicable, can be availed simultaneously and...

January 30, 2021

India’s dedicated bankruptcy court has admitted a loan default case against a corporate guarantor, sending a stern message to companies that pledging guarantees on behalf of a borrower is not a mere formality. “Corporate guarantee is no more to be presumed as a comfort undertaking as it leads to definite monetary obligations dragging the corporate...

January 30, 2021

  Employee’s Compensation (Amendment) Act 2017 has been introduced with effect from 15th May, 2017. Major changes in the Employee’s Compensation (Amendment) Act 2016 are as follows: Every employer shall immediately at the time of employment of an employee, inform theè employee of his rights to compensation under this Act, in writing as well as...

January 30, 2021

With a view to simplify and expedite the process of registration of trademarks in India, Government of India took forth the initiative to draft a new set of rules that are in alignment with the objective of fastening the procedure of trademark filing while decreasing red-tapism and delays . A notification regarding the draft rules...

January 30, 2021

Section 138 of the Negotiable Instruments Act, 1881 creates a statutory offence in the matter of dishonour of cheques on the ground of insufficiency of funds in the account maintained by a person with the banker. Objective The objective of the act is to define the various negotiable instruments such a, promissory notes, bills of...

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