Daily Archives: October 15, 2024

Banks must mandatorily adhere to the procedure laid down in ‘Instructions for Framework for Revival and Rehabilitation of MSMEs’ before classifying MSME account as NPA || Supreme Court enforces MSME Revival Framework

In its landmark judgment passed in the case of Pro Knits v. Board of Directors of Canara Bank & Ors., the Hon’ble Supreme Court addressed the appeals preferred by several Micro, Small, and Medium Enterprises (MSMEs) challenging the process adopted by the financial institutions, particularly banks, in classifying the accounts of such MSMEs as Non-Performing…

Unilateral set off / adjustment of the income tax refund against income tax dues accruing pre-CIRP during liquidation process is impermissible under the IBC: NCLAT clarifies

The Hon’ble National Company Law Appellate Tribunal (NCLAT), vide judgment dated July 12, 2024, in the matter of Avil Menezes v. Principal Chief Commissioner of Income Tax, Mumbai, inter alia, addressed significant issues vis-à-vis mechanism of set-off of pre-insolvency process dues during the liquidation process. The present appeal was filed challenging the order of the…

Information utilities to verify details of the debtor before issuance of a record of default Contributors

On August 13, 2024, the Insolvency and Bankruptcy Board of India (IBBI), in exercise of the powers conferred by section 196, 213, 214, 215 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (IBC), amended the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 (IU Regulations). Pertinently, the said Regulations were…

IBBI extends timeline for disposal of show-cause notices by Disciplinary Committee, amends Inspection and Investigation Regulations 2017

On August 13, 2024, in exercise of the powers conferred to it under sections 196, 217, 218, 219, 220 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (IBC), the Insolvency and Bankruptcy Board of India (IBBI)amended the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 (Inspection and Investigation Regulations).…

IBBI Paves the way for MSME Transparency with new CIRP Registration Framework

The discussion paper released by the Insolvency and Bankruptcy Board of India (IBBI) addresses the need for a robust framework for the registration and disclosure of Micro, Small, and Medium Enterprises (MSMEs) under the Corporate Insolvency Resolution Process (CIRP). This is so because the MSMEs play a crucial role in the Indian economy, contributing significantly…

IBBI issues circular on Generation of Valuation Report Identification Number (VRIN) for valuations under the Insolvency and Bankruptcy Code

The Insolvency and Bankruptcy Board of India (IBBI) issued a circular mandating the generation of a Valuation Report Identification Number (VRIN) for each valuation conducted by Registered Valuers (RVs) under the IBC. The primary intent of the circular is to ensure the authenticity and uniqueness of valuation reports, thereby enhancing transparency and reliability in the…

IBBI issues ‘Guidelines for Committee of Creditors, 2024’

The Insolvency and Bankruptcy Board of India (IBBI) has issued guidelines for the Committee of Creditors (CoC) to enhance the decision-making process of the CoC members under the Insolvency and Bankruptcy Code (IBC). These self-regulating guidelines, effective immediately, aim to reduce procedural delays and improve transparency and coordination amongst the CoC members. The guidelines stress…

Union Budget 2024: Tax regime change and simplification

The Budget 2024 which was notified on August 16, 2024, on the tax front sought to simplify and rationalize the tax regimes for reducing litigation whilst deepening and widening the tax base for enhancing tax revenues for the exchequer. Removal of angel taxation, reduction in the corporate tax rate for foreign companies and withdrawal of…

RBI releases draft framework on Due Diligence of Aadhaar enabled Payment System Touchpoint Operators

 Pursuant to the announcement made in its Statement on Developmental and Regulatory Policies dated February 8, 2024, the Reserve Bank of India (RBI) has released the draft directions on Due Diligence of Aadhaar enables Payment System (AePS) Touchpoint Operators (Draft Directions) inviting public comments. The RBI stated that, in recent times, there have been instances…

RBI releases circular on Remittances made under LRS to IFSCs in India

The Reserve Bank of India (RBI) has published a circular in relation to remittances to International Financial Services Centres (IFSCs) in India under the Liberalised Remittance Scheme (LRS) (RBI Circular). Pursuant to the RBI Circular, the RBI has decided to review and revise the permissible purposes for the remittances made under LRS to IFSCs in…