one of the first substantive rulings of the Supreme Court under the Insolvency and Bankruptcy Code:

Understand; HON'ble ~SC ruling in ICICI vs Innoventive, dated 31st August, 2017, one of the first substantive rulings of the Supreme Court under the Insolvency and Bankruptcy Code:

The important principles held by the Supreme Court are as follows:

1. ICICI’s insolvency application against Innoventive has been upheld by the Supreme Court. The insolvency declaration was being challenged on the ground that Innoventive was   a “relief undertaking” under the Maharashtra law for relief in case of industrial undertakings.

2. Supreme Court held that there was a conflict between the Maharashtra Relief law and the Bankruptcy Code, but citing well settled rulings in the past, the SC held that in case of a conflict between a state law and a Central Law, the Central Law will prevail. The Insolvency and Bankruptcy Code is a law that codifies the existing law on bankruptcy, enacted under the powers given to the Central Govt under Part I of Seventh Schedule of the Constitution, and therefore, overrides any contrary state law.

3. In several remarks through the ruling, the SC has highlighted the fact that time is of essence in bankruptcy proceedings.

4. In case of financial debt, the question of a dispute does not arise. All that the financial creditor is required to produce is evidence of non-payment through records of information utility or otherwise.

5. The SC also hinted at a very important principle – which may actually become a sad spot if the existing directors of companies under insolvency matters try to challenge the insolvency filings – that once the  Insolvency has been ordered, the Board of Directors ceases to have the power to represent the company.

6. SC also remarked: “Entrenched managements are no longer allowed to continue in management if they cannot pay their debts.”
This is one of the first substantive rulings on the Insolvency law, and settles some nagging issues.

*Actively watching NCLT & SARFARESI Act too;*

UdayPrabhu@Activist.com

Car dash board symbols

Secured Creditor Cannot Invoke Section 14 Of SARFAESI Act After Sale Of Secured Asset: Calcutta HC

Secured Creditor Cannot Invoke Section 14 Of SARFAESI Act After Sale Of Secured Asset: Calcutta HC [Read Judgment]

Read more at: http://www.livelaw.in/secured-creditor-cannot-invoke-section-14-sarfaesi-act-sale-secured-asset-calcutta-hc-read-judgment/

തിയതിക്കകം ബില്ല് അടച്ചില്ലെങ്കില്‍ ഇനി മുതല്‍ ഒറ്റയടിക്ക് കെ.എസ്.ഇ.ബിക്ക് വൈദ്യുതി വിച്ഛേദിക്കാനാകില്ല. 15 ദിവസത്തെ മുന്‍കൂര്‍ നോട്ടീസ് നല്‍കിയ ശേഷം മാത്രമെ

. KSEB യുടെ ഫീസൂരലിന് ഉപഭോക്തൃ കോടതി കടിഞ്ഞാണിട്ടു.

ഉപഭോക്താവ് നിശ്ചിത തിയതിക്കകം ബില്ല് അടച്ചില്ലെങ്കില്‍ ഇനി മുതല്‍ ഒറ്റയടിക്ക് കെ.എസ്.ഇ.ബിക്ക് വൈദ്യുതി വിച്ഛേദിക്കാനാകില്ല. 15 ദിവസത്തെ മുന്‍കൂര്‍ നോട്ടീസ് നല്‍കിയ ശേഷം മാത്രമെ വൈദ്യുതി വിച്ഛേദിക്കാവൂയെന്ന് സംസ്ഥാന ഉപഭോക്ത്യ പ്രശ്നപരിഹാര ഫോറം ഉത്തരവിട്ടു. മുന്നറിയിപ്പ് നല്‍കാതെ വൈദ്യതി വിച്ഛേദിക്കുന്നത് കെ.എസ്.ഇ.ബി ആക്ടിന്റെ ലംഘനമാണെന്നാണ് ഉപഭോക്ത്യ പ്രശ്ന പരിഹാര ഫോറത്തിന്റെ വിലയിരുത്തല്‍

പൊതു സമൂഹത്തിന്റെ അറിവിലേക്കായി ഷെയർ ചെയുക.

Secured Creditor Cannot Invoke Section 14 Of SARFAESI Act After Sale Of Secured Asset: Calcutta HC

Secured Creditor Cannot Invoke Section 14 Of SARFAESI Act After Sale Of Secured Asset: Calcutta HC [Read Judgment]

Read more at: http://www.livelaw.in/secured-creditor-cannot-invoke-section-14-sarfaesi-act-sale-secured-asset-calcutta-hc-read-judgment/

one of the first substantive rulings of the Supreme Court under the Insolvency and Bankruptcy Code:

Understand; HON'ble ~SC ruling in ICICI vs Innoventive, dated 31st August, 2017, one of the first substantive rulings of the Supreme Court under the Insolvency and Bankruptcy Code:

The important principles held by the Supreme Court are as follows:

1. ICICI’s insolvency application against Innoventive has been upheld by the Supreme Court. The insolvency declaration was being challenged on the ground that Innoventive was   a “relief undertaking” under the Maharashtra law for relief in case of industrial undertakings.

2. Supreme Court held that there was a conflict between the Maharashtra Relief law and the Bankruptcy Code, but citing well settled rulings in the past, the SC held that in case of a conflict between a state law and a Central Law, the Central Law will prevail. The Insolvency and Bankruptcy Code is a law that codifies the existing law on bankruptcy, enacted under the powers given to the Central Govt under Part I of Seventh Schedule of the Constitution, and therefore, overrides any contrary state law.

3. In several remarks through the ruling, the SC has highlighted the fact that time is of essence in bankruptcy proceedings.

4. In case of financial debt, the question of a dispute does not arise. All that the financial creditor is required to produce is evidence of non-payment through records of information utility or otherwise.

5. The SC also hinted at a very important principle – which may actually become a sad spot if the existing directors of companies under insolvency matters try to challenge the insolvency filings – that once the  Insolvency has been ordered, the Board of Directors ceases to have the power to represent the company.

6. SC also remarked: “Entrenched managements are no longer allowed to continue in management if they cannot pay their debts.”
This is one of the first substantive rulings on the Insolvency law, and settles some nagging issues.

*Actively watching NCLT & SARFARESI Act too;*

UdayPrabhu@Activist.com

You should approach a court after you have raised the matter with your bank and with the ombudsman.

Approaching a court

Consumers have the right to fight it out in court if there is any dispute. “You should approach a court after you have raised the matter with your bank and with the ombudsman. In case you don’t make a grievance with the bank, your case may not be entertained as it may be considered as premature,” said Harsh Pathak, a Delhi-based lawyer who works on cases related to banking and consumer rights.

There is a hierarchy in place when you approach a consumer court depending on the financial damage in dispute. For instance, if you are fighting a case for a financial damage of up to Rs.20 lakh, you can file a complaint before the district consumer disputes redressal forum. If it is above Rs.20 lakh but below Rs.1 crore, then you will have to take it to the state consumer disputes redressal commission. If it is above Rs.1 crore, you need to approach the National Consumer Disputes Redressal Commission. “You have the right to bypass the internal redressal mechanism and complaint to consumer forum,” said Jehangir Gai, a Mumbai-based consumer activist.

Documents, jurisdiction

If you decide to approach a court, it is important to build evidence against the bank. Always save bills, receipts or any document as a proof. If you have raised the matter with the bank, keep the documents. If you have approached the ombudsman, keep a copy of the complaint. Once you decide to approach a court and have the documents in place, next is to file the case in the right jurisdiction. “Usually, you have to file the case where the home branch or the bank headquarters is depending on the agreement between you and your bank,” said Gai.

How to file a complaint

Your complaint should be brief, clear and precise. If you have hired a lawyer, she will take care of the writing. But if you don’t have a lawyer and want to fight the case on your own, keep in mind that the format is subjective. “The complaint must mention the names of the parties, details of the transactions, nature of the dispute, and the relief being sought. The pages have to be numbered, and filed along with an index. An affidavit, and supporting documents, should be attached,” said Gai.

Three copies should be filed and one should be set aside for the party against whom the complaint is filed. One identical set should be kept with the complainant to argue the case. “If you don’t have a lawyer and are unable to write a complaint yourself, you can approach legal aid cell in the court premises,” said Pathak

Costs and time frame

Fighting a case in court may take time, and also money. You need to be persistent and determined. “The time taken to get a verdict on a case depends on the complexities of the case,” said Pathak. Some cases get resolved within six months while some go on for years. Besides time, court cases come with costs attached.

Complaint fee for filing a case for a financial damage is limited to Rs.100-9,000 depending up on the damage you are seeking.

Also, you will have to pay a lawyer if you are hiring one. But you can claim cost of your complaint.