1. Insolvency and Bankruptcy Code, 2016 – A Macro View. CS Alka Kapoor
Insolvency and Bankruptcy Code, 2016 – A Macro View CS Alka Kapoor CEO, ICSI IIP
ICSI Institute of Insolvency Professionals

2. IBC – THE GENESIS Constitution of BLRC 2014
Particulars
Data
Constitution of BLRC
2014
Date of enactment of the Code
May 28, 2016
Date of notification of CIRP Regulations, Regulations relating to IPs and IPAs
December 01,2016
Date of Commencement of Liquidation Regulations
December, 15, 2016
No. of Amendments to the Code 2
No. of Amendments to CIRP Regulations 7
No. of Amendments to Liquidation Regulations 1
No. of Circulars by IBBI 16
ICSI Institute of Insolvency Professionals

3. Cases Referred Under IBC: An Update
Particulars
Data
Number of Corporates undergoing Insolvency Resolution Process (Admitted cases)
More than 1,100
Number of Corporates undergoing Liquidation Process
More than175
Number of Corporates undergoing Voluntary Liquidation Process
More than 250
Number of Companies resolved
Around 50
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4. Cases Referred Under IBC: An Update
Particulars
Data
First Admission of Corporate Insolvency Resolution Process- by NCLT Mumbai Bench.
January 17, 2017
First NCLT order approving Resolution Plan-by NCLT, Hyderabad
August 02, 2017
First Liquidation order by NCLT, Mumbai Bench
July 17, 2017
First Voluntary Liquidation under Section 59 of the Code
April
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5. FIRST 12 NPA ACCOUNTS REFERRED BY RBI- STATUS
Names
Resolved Cases
Bhushan Steel
Electrosteel Steels
Amtek Auto
Monnet Ispat & Energy
Cases on verge of Liquidation
Jyoti Structures
Lanco Infratech
Admitted and at different stages
ABG Shipyard
Era Infra Engineering
Essar Steel
Jaypee Infratech
Alok Industries
Bhushan Power & Steel
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6. Judicial Pronouncements by Supreme Court /NCLT/NCLAT/IBBI under IBC
Particulars,
Data
Orders by Supreme Court
More than 50
More than 30 relates to withdrawal of petition under Article 142.
12A has been introduced- providing for withdrawal of application with 90% COC approval, so that each withdrawal case is not required to go to Supreme Court
Home Buyers recognised as Financial Creditors
Orders by NCLAT
More than 450 orders providing for Interpretation of the Code, dismissing the admission of CIRP, supporting IP, directing IP, directions to CoC , directions to suspended Directors etc.
Orders by NCLT
More than 3000 orders by various benches of NCLT, including directions to police authorities, municipal authorities to support, Payment of fee to resolution professional, Directions to essential supply provider, Applicability of moratorium etc.
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7. Judicial Pronouncements by Supreme Court /NCLT/NCLAT/IBBI under IBC
Particulars
Data
Orders by IBBI
28 orders on various aspects including rejecting application for registration as insolvency professional,
Disciplinary grounds(Suspending/cancelling the registration number) De recognition of IPE, RTI matters etc.
ICSI Institute of Insolvency Professionals

8. Broad Issues Settled Through Recent Amendments In The Code
Section 29A, barring wilful defaulters(Promoters) from being a resolution applicant. Section 240A provides exemptions to promoters of MSMEs from Section 29A, enabling them to submit a resolution plan.
Section 12A enabling withdrawal of CIRP with the consent of 90% approval of COC.(Earlier withdrawal of applications was through Supreme Court under Article 142)
Home Buyers got the status of Financial Creditors under the IBC.(The definition of financial debt amended and JP infratech Limited case was instrumental for this change)
Amendment to Section 14(3) -Moratorium not applicable for surety in a contract of guarantee to a corporate debtor enabling creditors to recover the money from surety.
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Continued

9. Broad Issues Settled Through Recent Amendments In The Code
Section 196 (Power & Functions of Board) has been amended to incorporate the role of development and regulation of IPs, IPAs, IUs etc
Change in threshold limits for approval of COC for critical decisions under CIRP reduced to 66% from 75%
Section 16(5) amended, term of the IRP shall continue till the date of the appointment of the RP under Section 22 (Prior to Amendment - Term of IRP not to exceed 30 days from the date of his appointment)
The insolvency commencement date to be from the date of appointment of IRP, if he is not appointed on the day of admission of CIRP.
The calculation of timelines is still unclear -when the date of receipt of order by IRP is later than the date of order appointing an IRP, as there are varied judicial pronouncements.
ICSI Institute of Insolvency Professionals

10. Broad Issues Settled Through Recent Amendments to the Code
Section 21(6A) has been introduced enabling classes of creditors to appoint their authorised representatives in the COC Meetings. The CIRP regulations provides for Each Class of Creditors can appoint their authorised representatives from three choices of insolvency professionals provided by the IRP
Section 235A has been introduced to levy general penalty of 1 lakh-2 Crore where no specific penalty or punishment is provided.
ICSI Institute of Insolvency Professionals

11. Broad Issues Settled Through Pronouncements (Supreme Court, High Court, NCLAT & NCLT)
The definition of dispute is inclusive and cannot be restricted to pending suits or arbitral proceedings.(Mobilox Innovations Private Limited Vs Kirusa Software Private Limited(Supreme Court)(already amended)
The Code shall prevail over the state laws in view of Section 238 of the Code relating to non-obstante clause, in case of inconsistency (Innoventive Industries Limited Vs ICICI Bank)(Supreme Court)
Proceeding under Section 138 of Negotiable Instruments Act, is not covered under Section 14, i.e moratorium shield (Shah Brothers Ispat Pvt. Ltd. vs. P. Mohanraj & Ors [ ]) (NCLAT)
ICSI Institute of Insolvency Professionals
continued

12. Broad issues settled through Pronouncements (Supreme Court, High Court, NCLAT & NCLT)
Limitation period for initiation of IBC proceedings starts from1st December, 2016, when ‘I&B Code’ came into force. (Mr. Brijesh Kumar Agarwal v/s Punjab National Bank & Anr. (NCLAT)
Corporate Debtor undergoing CIRP can initiate CIRP against its debtors as FC or OC(Jai Ambe Enterprises Vs S N Plumbing Private Limited)(NCLT)
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Continued

13. Pronouncements of NCLT advising Insolvency Professionals
NCLT Hyderabad changed the IRP and refrained him from taking too many assignments. [IDBI Bank Ltd v/s Lanco Infratech Ltd ]
NCLT observed that Insolvency Professional should not outsource all his work, specially his responsibilities. [Bank of Baroda (FC) and Binani Cement Limited (CD) v/s Mr. Vijaykumar Iyer (RP))
NCLT warned the IRPs not to be a part of cases wherein the parties are not in a position to meet even the basic cost of public announcement, fee payable to IRP. (Energy Infraconsulting India Private Limited v/s Athena Chhattisgarh Power Limited)
NCLT directed the IRP to continue beyond 30 days as COC had not come up with the name of Resolution Professional (Burn Standard Company Ltd.; NCLT Kolkata) (Now the same concept has been adopted in the Code also through amendment in tenure of IRP as per Sec 16(5).
ICSI Institute of Insolvency Professionals

14. Pronouncements of NCLT and NCLAT Supporting Insolvency Professional
Police was directed to give assistance to IRP and directed CD to furnish the book of account, list of financial and operational creditors and assets to the IRP. [Central Bank of India and SBI v/s Ashok Magnetics ; NCLT Chennai]
IRP was directed to ensure that the company remains ongoing and if so necessary may take assistance of (suspended) Board of Directors. Authorization of the Resolution Professional is necessary for the person authorized to sign the bank cheques. [K.Kesava v/s Ajay Gopaldas Samat (HUF) & Ors.]
Property was sealed by Municipal Corporation of Faridabad AA ordered Municipal Corporation Faridabad to de seal the property and surrenders its possession to RP. [Indiabulls Housing Finance Ltd. v/s M/s Forging pvt. Ltd.; NCLT, New Delhi Principal Bench]
NCLAT had set aside the observations made by the Adjudicating Authority against RP as those were uncalled for stating and held that “The Insolvency and Bankruptcy Code, ” being a new Code, every person dealing with the subject including RP’s, Liquidators, Lawyers, AA and even the members of Appellate Tribunal are trying to understand the provisions of Law. [Jitendra Kumar Jain; NCLAT, New Delhi]
ICSI Institute of Insolvency Professionals

15. Regulatory mandates for IPAs and the Journey of ICSI IIP
IPAs are to enroll, educate, develop, monitor and regulate the insolvency professionals.
ICSI IIP has over 700 members.
The governing Board comprises of eminent Independent Directors.
It has various committees: Monitoring, Disciplinary, Membership, Grievance Redressel, Advisory, Appelant Panel.
ICSI Institute of Insolvency Professionals

16. Regulatory mandates for IPAs and the Journey of ICSI IIP
To build the capacities of IPs:
- Conducts training programmes
- Intensive training workshops
- Certificate Programs
- 50 hours pre registration training program
- Webinars
- First Organisation to bring out Monthly Journal
- Regular knowledge updates
ICSI Institute of Insolvency Professionals

17. Regulatory mandates for IPAs and the Journey of ICSI IIP
To build the capacities of IPs:
- Publications
- Case Law Compeddium
- Judicial Pronouncements under the Code: An issue analysis
- Practical aspects of Insolvency Code (three editions have come so far)
- Interim Resolution Professional: A handbook (two editions have come so far
- Voluntary Liquidation: A handbook etc.
ICSI Institute of Insolvency Professionals

18. Regulatory mandates for IPAs and the Journey of ICSI IIP
Support by ICSI IIP in the development of the Code:
- to the working groups involved in the development of delegated legislations under the Code
- to Insolvency Law Committee in terms of making suggestions for various amendments in the code taking into consideration the difficulties being faced by IPs at ground level.
- to IBBI in terms of inputs to the advisory committees of IBBI, International best practices on monitoring, Cost of CIRP, Fees to RP, treatment of contingent Liabilities in a Resolution Plan, Inputs on revision of Limited Insolvency Examination, Graduate Insolvency Program.
- MCA/IBBI on conducting roundtables of stakeholders on matters including individual insolvency regulations, Provisions of Cross Border Insolvency under IBC, amendments to the Code.
ICSI Institute of Insolvency Professionals

19. THANK YOU !
ICSI Institute of Insolvency Professionals