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insolvency

Dec 13, 2019, 02.32 AM IST

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INSOLVENCY

FM introduces bill in Lok Sabha to amend insolvency law

The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 was approved by the Union Cabinet on Wednesday.

NCLAT stays NCLT directive to make MCA party to all insolvency cases

The appellate tribunal's direction came over a petition filed by the gov...

Cabinet clears more amendments to IBC; to ring fence successful bidders from risks

The Insolvency and Bankruptcy Code (IBC), which came into ...

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  • Piyush Goyal said as regards reforms in the tax system, it is stated that through the Taxation Laws (Amendment) Ordinance, 2019 (the Ordinance), corporate tax rates were reduced to 22 per cent plus the applicable surcharge and cess for all domestic corporate persons not claiming any deduction or incentive.

    The public sector lender had granted a loan of Rs 75 crore to RNA Corp in October 2013 and the builder defaulted on repayment of this loan in December 2014, since then the account has been classified as a non-performing asset. The bank has claimed total dues worth Rs 80.73 crore including the principal loan, interest, penal interest and legal expenses.

    The move comes ahead of the Supreme Court hears a group of investors who have moved it on the matter, and barely three days after the National Company Law Tribunal's Mumbai bench admitted the RBI's application for initiating insolvency proceedings against the cash-strapped firm, and permitted it to go ahead in the matter.

    When a company faces insolvency proceedings, promoters are unable to raise funds for other businesses, and also they are not eligible to bid for any bankrupt business under Section 29A of the Bankruptcy Act. With effect from December 1, guarantors to any insolvent business too face bankruptcy proceedings.

    The Cabinet is likely to approve relevant changes to the three-year-old Insolvency and Bankruptcy Code at the earliest. This will bring much-needed confidence to buyers of distressed assets, acquirers who were otherwise wary about the over-reach of the investigative authorities. Amendments to the IBC, which came into effect in December 2016, will require eventual parliamentary approval.

    Omkaram Venkata Ramana, who had stood personal guarantor to five firms that defaulted on Rs 38.66 crore of bank loans, filed the petition to initiate personal insolvency resolution process, which his counsel said would entitle him to an interim moratorium on all his liabilities.

    DHFL became India’s first non-banking finance company to face insolvency proceedings.

    NBCC has advanced the completion date to 42 months from 48 earlier and has also increased the land offered to lenders by 100 acres to 1,526 acres. It has also proposed to increase the concession agreement of Yamuna Expressway by 10 years. The final voting of the committee of creditors (CoC) is likely to take place on December 11.

    “Debt moratorium on DHFL till insolvency plea admitted,” ETNow reported.

    Assets up for sale include airwaves in the 850 MHz band in 14 of India’s 22 telecom circles, about 43,000 telecom towers, some fibre and data centres. Bharti Airtel has made the highest bid of Rs 9,000 crore and has offered upfront payment but wants all the assets and not parts of it.

    "There is proposal to amend the IBC to provide for such cases like cross border insolvency," the IBBI chief said.

    Aviva Life Insurance on Wednesday said the insolvency case filed against the company, in a matter involving commercial dispute of Rs 27 lakh, has been settled.

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