--- title: "Insolvency & Restructuring" date: 2024-02-14 author: "KM Team" url: https://acuitylaw.co.in/practice-areas/insolvency-restructuring/ --- # Insolvency & Restructuring ![Insolvency Law](https://acuitylaw.co.in/wp-content/uploads/2024/02/19559-1.jpg) ### OVERVIEW [Acuity Law’s](https://acuitylaw.co.in/) Restructuring & Insolvency practice provides comprehensive advisory services under the Insolvency and Bankruptcy Code, 2016. We assist financial creditors, corporate debtors, operational creditors, resolution applicants and insolvency professionals. Given the Firm’s expertise in Corporate and Tax practice, Acuity Law is in a unique position to assist parties in resolving insolvency related matters.  ### ROLE - From the point of view of a corporate debtor, our expertise lies in devising strategy under the IBC, [Companies Act](https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf), 2013, guidelines issued by the Reserve Bank of India and other applicable laws to restructure the business. - We are also at the forefront in aiding and assisting operational creditors and financial creditors in drafting applications for initiating insolvency proceedings against corporate debtors and providing negotiation support to settle or claim unpaid dues - Our practice also includes representing financial creditors, corporate debtors or operational creditors in National Company Law Tribunal and the appellate tribunal /courts on various matters relating to the IBC ##### Corporate Insolvency The Insolvency and Bankruptcy Code, 2016 (Code) was enacted to revamp the insolvency and bankruptcy laws and resolve problems being faced by creditors due to non-repayment of outstanding dues by corporate borrowers. This primer deals with the fundamental principles of corporate insolvency, its related procedure and relevant law in India. [View Document](https://acuitylaw.co.in/wp-content/uploads/2024/02/FAQ-17-Corporate-Insolvency-Regulations.pdf) ##### The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) were formulated to carry out the provisions of the Insolvency and Bankruptcy Code, 2016 (Code). These regulations are applicable to the corporate insolvency resolution process (CIRP). Here we present an overview of the CIRP Regulations and related procedures. [View Document](https://acuitylaw.co.in/wp-content/uploads/2024/02/FAQ-2-CIRP.pdf) ### Key Professionals ![](https://acuitylaw.co.in/wp-content/uploads/2025/01/SG-1-scaled-e1775734628647.png) ### Souvik Ganguly Managing Partner [View Profile](https://acuitylaw.co.in/people/souvik-ganguly/) ### Related Posts [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/CIRP.jpg)](https://acuitylaw.co.in/amendments-to-corporate-insolvency-resolution-process/) October 3, 2023 ### [Amendments to Corporate Insolvency Resolution Process](https://acuitylaw.co.in/amendments-to-corporate-insolvency-resolution-process/) On 18 September 2023, the Insolvency and Bankruptcy Board of India (IBBI) introduced the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2023 (CIRP Amendment Regulations). Here is a summary of the key changes made through these regulations: 1. In applications seeking initiation of corporate Insolvency resolution process of… [Read more](https://acuitylaw.co.in/amendments-to-corporate-insolvency-resolution-process/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/123.png)](https://acuitylaw.co.in/leased-petroleum-assets-to-be-exempt-from-moratorium-under-the-insolvency-and-bankruptcy-code-2016/) November 29, 2023 ### [Leased petroleum assets to be exempt from moratorium under the Insolvency and Bankruptcy Code, 2016](https://acuitylaw.co.in/leased-petroleum-assets-to-be-exempt-from-moratorium-under-the-insolvency-and-bankruptcy-code-2016/) By a notification dated 14 June 2023 (read here), the Ministry of Corporate Affairs has exempted petroleum assets leased by a company undergoing insolvency proceedings from the moratorium provisions of the Insolvency and Bankruptcy Code, 2016. The exemption ensures that oil wells do not become inactive if a company faces insolvency, allowing the Ministry of Petroleum… [Read more](https://acuitylaw.co.in/leased-petroleum-assets-to-be-exempt-from-moratorium-under-the-insolvency-and-bankruptcy-code-2016/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thumbnail-26.png)](https://acuitylaw.co.in/no-look-back-period-for-fraudulent-transactions-under-insolvency-laws/) February 17, 2023 ### [No look back period for fraudulent transactions under insolvency laws](https://acuitylaw.co.in/no-look-back-period-for-fraudulent-transactions-under-insolvency-laws/) Introduction The objective of the Insolvency and Bankruptcy Code, 2016 (Code) is to maximize the value of the assets of the corporate debtors and to ensure their revival. One vital aspect for reviving a debt-ridden company is reversal of avoidance transactions i.e., preferential, undervalued, defrauding creditors and extortionate transactions. The Code empowers the resolution professional… [Read more](https://acuitylaw.co.in/no-look-back-period-for-fraudulent-transactions-under-insolvency-laws/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thumbnail-16.png)](https://acuitylaw.co.in/avoidance-application-survives-insolvency-process/) January 27, 2023 ### [Avoidance application survives insolvency process](https://acuitylaw.co.in/avoidance-application-survives-insolvency-process/) Introduction The Insolvency and Bankruptcy Code, 2016 (Code) contains four types of avoidable transactions that are to be avoided, otherwise it would affect the financial position of the corporate debtor - preferential, undervalued, defrauding creditors and extortionate transactions. The Code mandates that the Resolution Professional / the Liquidator (Insolvency Professional) should determine if the corporate debtor… [Read more](https://acuitylaw.co.in/avoidance-application-survives-insolvency-process/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-7.png)](https://acuitylaw.co.in/licensing-of-premises-is-a-service-under-insolvency-law/) July 29, 2022 ### [Licensing of premises is a ‘Service’ under insolvency law](https://acuitylaw.co.in/licensing-of-premises-is-a-service-under-insolvency-law/) Under the Insolvency and Bankruptcy Code, 2016 (Code), a trade creditor may initiate corporate insolvency resolution process if there is an unpaid operational debt above INR 10 million. An ‘operational debt’ under the Code means a claim in relation to goods and services. The insolvency courts have provided divergent views on the issue of whether… [Read more](https://acuitylaw.co.in/licensing-of-premises-is-a-service-under-insolvency-law/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/03/judges-gavel-book-wooden-table-law-justice-concept-background_1150-9097.jpg)](https://acuitylaw.co.in/revision-of-cirp-regulations-to-streamline-corporate-insolvency-resolution-process/) March 1, 2024 ### [Revision of CIRP Regulations to Streamline Corporate Insolvency Resolution Process](https://acuitylaw.co.in/revision-of-cirp-regulations-to-streamline-corporate-insolvency-resolution-process/) On 15 February 2024, the Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2024 (read here) to streamline the corporate insolvency resolution process (CIRP). A summary of the key amendments are as follows:  These amendments, effective from 15 February 2024,… [Read more](https://acuitylaw.co.in/revision-of-cirp-regulations-to-streamline-corporate-insolvency-resolution-process/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/04/closeup-hand-signing-paper-workspace_53876-31566-e1759819552322.jpg)](https://acuitylaw.co.in/compulsorily-convertible-debentures-whether-debt-or-equity/) April 9, 2024 ### [Compulsorily Convertible Debentures: Whether debt or equity?](https://acuitylaw.co.in/compulsorily-convertible-debentures-whether-debt-or-equity/) Compulsorily Convertible Debentures (CCDs), a hybrid instrument, has gained prominence in the last two decades. However, its classification as equity or debt has been the subject of discussions, mainly due to conflicting perspectives under different laws. This initial divergence surfaced from the framework of guidelines under the Foreign Exchange Management Act, 1999 (FEMA), which deemed… [Read more](https://acuitylaw.co.in/compulsorily-convertible-debentures-whether-debt-or-equity/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/04/law-firm-concept-illustration_114360-8626-e1759914473876.jpg)](https://acuitylaw.co.in/streamlining-liquidation-key-changes-to-the-liquidation-regulations/) February 29, 2024 ### [Streamlining liquidation: Key changes to the liquidation regulations](https://acuitylaw.co.in/streamlining-liquidation-key-changes-to-the-liquidation-regulations/) On 12 February 2024, the Insolvency and Bankruptcy Board of India (IBBI) introduced the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 (read here), aimed at enhancing the effectiveness and accountability of the liquidation process. A summary of the key amendments are as follows: These amendments, effective from 12 February 2024, are… [Read more](https://acuitylaw.co.in/streamlining-liquidation-key-changes-to-the-liquidation-regulations/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Untitleddesign36.png)](https://acuitylaw.co.in/dilution-of-rights-of-service-providers-under-the-insolvency-law/) March 25, 2020 ### [Dilution of Rights of Service Providers Under the Insolvency Law](https://acuitylaw.co.in/dilution-of-rights-of-service-providers-under-the-insolvency-law/) In a recent judgment, i.e., on 17 January 2020, the Indian appellate insolvency tribunal, namely, the National Company Law Appellate Tribunal (NCLAT) held in M. Ravindranath Reddy v. G. Kishan, that the lease of immovable property cannot be considered as supply of goods or rendering any services and therefore the due amount cannot fall within… [Read more](https://acuitylaw.co.in/dilution-of-rights-of-service-providers-under-the-insolvency-law/) [![Functionality test to be applied for availing input tax credit](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-37.png)](https://acuitylaw.co.in/supreme-court-rejigs-priority-of-tax-dues-under-ibc/) October 11, 2022 ### [Supreme Court rejigs priority of tax dues under IBC](https://acuitylaw.co.in/supreme-court-rejigs-priority-of-tax-dues-under-ibc/) The Insolvency & Bankruptcy Code, 2016 (Code) provides a structure for realisation of debts owed to the creditors in the event of liquidation. In this structure, secured creditors are given preference to recover their dues over statutory dues / crown debts owed to the State. However, recently in State Tax Officer v. Rainbow Papers Ltd.… [Read more](https://acuitylaw.co.in/supreme-court-rejigs-priority-of-tax-dues-under-ibc/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-36.png)](https://acuitylaw.co.in/ibbi-prescribes-fee-structure-for-insolvency-professionals/) October 10, 2022 ### [IBBI prescribes fee structure for insolvency professionals](https://acuitylaw.co.in/ibbi-prescribes-fee-structure-for-insolvency-professionals/) Under the Insolvency and Bankruptcy Code, 2016 (Code), the resolution professional or the interim resolution professional (collectively referred as RP) is vested with the responsibility of running the business of the corporate debtor as a going concern and conducting the corporate insolvency resolution process (CIRP). The RP must also ensure that CIRP is conducted in… [Read more](https://acuitylaw.co.in/ibbi-prescribes-fee-structure-for-insolvency-professionals/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-27.png)](https://acuitylaw.co.in/commercial-wisdom-of-the-liquidator-upheld-by-the-supreme-court/) September 14, 2022 ### [Commercial wisdom of the liquidator upheld by the Supreme Court](https://acuitylaw.co.in/commercial-wisdom-of-the-liquidator-upheld-by-the-supreme-court/) Under the Insolvency and Bankruptcy Code, 2016 (Code), if a corporate debtor is unable to pay its debts, then insolvency resolution proceedings (CIRP) may be initiated against the corporate debtor and attempts are made to revive the corporate debtor by inviting resolution plans. If the revival process fails, the corporate debtor must be liquidated. The… [Read more](https://acuitylaw.co.in/commercial-wisdom-of-the-liquidator-upheld-by-the-supreme-court/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-23.png)](https://acuitylaw.co.in/affixing-liability-lifting-the-corporate-veil-under-insolvency-law-in-india/) August 29, 2022 ### [Affixing Liability: Lifting the Corporate Veil Under Insolvency Law in India](https://acuitylaw.co.in/affixing-liability-lifting-the-corporate-veil-under-insolvency-law-in-india/) Under corporate law, it is a well settled principle that a company has a juristic existence which is independent of its shareholders. An exception to this principle is the doctrine of lifting of corporate veil i.e., looking past the separate identity of the company and affixing liability on the actual perpetrators i.e., the management of… [Read more](https://acuitylaw.co.in/affixing-liability-lifting-the-corporate-veil-under-insolvency-law-in-india/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thhumbnial-19.png)](https://acuitylaw.co.in/withdrawal-settlement-under-liquidation/) August 18, 2022 ### [Withdrawal & settlement under liquidation](https://acuitylaw.co.in/withdrawal-settlement-under-liquidation/) While the corporate insolvency resolution process (CIRP) is underway, sometimes it is common for the creditor and the entity under CIRP (Corporate Debtor) to enter discussions where the parties may come to a mutual understanding to settle the debt. In such cases, a creditor may withdraw the application made against the Corporate Debtor for admission… [Read more](https://acuitylaw.co.in/withdrawal-settlement-under-liquidation/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Untitled-design-35.png)](https://acuitylaw.co.in/nclt-clarifies-interim-moratorium-not-applicable-to-future-liabilities/) January 2, 2023 ### [NCLT clarifies: Interim moratorium not applicable to future liabilities](https://acuitylaw.co.in/nclt-clarifies-interim-moratorium-not-applicable-to-future-liabilities/) Introduction In India, prior to the Insolvency and Bankruptcy Code, 2016 (Code), insolvency proceedings against individuals used to be governed by the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920. While, the Presidency Towns Insolvency Act, 1909 was applicable to the erstwhile presidency towns such as Calcutta, Bombay and Madras, the Provincial… [Read more](https://acuitylaw.co.in/nclt-clarifies-interim-moratorium-not-applicable-to-future-liabilities/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-thumbnail-6.png)](https://acuitylaw.co.in/no-insolvency-when-arbitration-award-is-in-execution/) December 20, 2022 ### [No insolvency when arbitration award is in execution](https://acuitylaw.co.in/no-insolvency-when-arbitration-award-is-in-execution/) The Insolvency and Bankruptcy Code, 2016 (Code) was introduced as a one stop solution for resolving insolvencies, which previously was a long-drawn process that did not offer an economically viable arrangement. In Swiss Ribbons Pvt. Ltd. v. Union of India, the Supreme Court of India, while upholding the constitutional legitimacy of the Code, emphasized that… [Read more](https://acuitylaw.co.in/no-insolvency-when-arbitration-award-is-in-execution/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/2-1.png)](https://acuitylaw.co.in/note-on-amendments-to-cirp-and-liquidation-process/) October 26, 2021 ### [Note on Amendments to CIRP and Liquidation process](https://acuitylaw.co.in/note-on-amendments-to-cirp-and-liquidation-process/) The Insolvency and Bankruptcy Board of India (IBBI) published discussion papers soliciting comments on issues relating to the corporate insolvency resolution process (CIRP Discussion Paper) and liquidation process (Liquidation Discussion Paper) on 27 August 2021. The IBBI on 30 September 2021 introduced amendments to the IBBI (Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations)… [Read more](https://acuitylaw.co.in/note-on-amendments-to-cirp-and-liquidation-process/) [![“Royalty” paid on mines and mineral lands is not a “Tax” affirms Supreme Court](https://acuitylaw.co.in/wp-content/uploads/2024/02/Enforcement-.png)](https://acuitylaw.co.in/enforcement-of-arbitral-awards-and-decrees-passed-in-the-united-states-of-america-under-indian-law/) October 27, 2021 ### [Enforcement of Arbitral Awards and Decrees passed in the United States of America under Indian law](https://acuitylaw.co.in/enforcement-of-arbitral-awards-and-decrees-passed-in-the-united-states-of-america-under-indian-law/) This article deals with our thoughts on some of the significant issues that may be faced if an arbitration award or decree passed by an arbitral tribunal or court within the territory of the United States of America (“U.S.”) is required to be enforced in India. Enforcing a U.S. arbitral award or decree can turn… [Read more](https://acuitylaw.co.in/enforcement-of-arbitral-awards-and-decrees-passed-in-the-united-states-of-america-under-indian-law/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Acuity-law-1.png)](https://acuitylaw.co.in/the-ambiguity-on-jurisdiction-of-nclt-and-drt-under-ibc/) November 23, 2021 ### [The Ambiguity on Jurisdiction of NCLT and DRT Under IBC](https://acuitylaw.co.in/the-ambiguity-on-jurisdiction-of-nclt-and-drt-under-ibc/) The problem of Non-performing Assets (NPAs) in the Indian banking system is one of its foremost predicaments. In order to allow lending institutions to recover such NPAs in an expeditious manner, the Indian Government established Debt Recovery Tribunals (DRT) under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act), and… [Read more](https://acuitylaw.co.in/the-ambiguity-on-jurisdiction-of-nclt-and-drt-under-ibc/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/2.png)](https://acuitylaw.co.in/proposed-amendments-to-ibc/) January 17, 2022 ### [Proposed amendments to IBC](https://acuitylaw.co.in/proposed-amendments-to-ibc/) Ministry of Corporate Affairs proposes changes to the Insolvency and Bankruptcy Code for time bound resolution of stressed assets. Ministry of Corporate Affairs (“MCA”) has, vide a notification dated 23 December 2021, proposed amendments to the Insolvency and Bankruptcy Code, 2016 (“Code”) to facilitate a swift admission process, streamline provisions concerning avoidable transactions and wrongful… [Read more](https://acuitylaw.co.in/proposed-amendments-to-ibc/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/image0_0-5.jpg)](https://acuitylaw.co.in/transactions-under-the-cape-town-convention-exempted-from-the-moratorium-provisions-of-the-insolvency-and-bankruptcy-code/) November 29, 2023 ### [Transactions under the Cape Town Convention exempted from the moratorium provisions of the Insolvency and Bankruptcy Code](https://acuitylaw.co.in/transactions-under-the-cape-town-convention-exempted-from-the-moratorium-provisions-of-the-insolvency-and-bankruptcy-code/) The Ministry of Corporate Affairs by notification dated 03 October 2023 (read here) exempted transactions, arrangements or agreements relating to aircraft, aircraft engines, airframes and helicopters under the Cape Town Convention and Protocol from the moratorium provisions of the Insolvency and Bankruptcy Code, 2016. This notification will allow the aircraft lessors to reclaim the possession… [Read more](https://acuitylaw.co.in/transactions-under-the-cape-town-convention-exempted-from-the-moratorium-provisions-of-the-insolvency-and-bankruptcy-code/) [![](https://acuitylaw.co.in/wp-content/uploads/2024/02/Insolvency-and-bankruptcy-code-2016.jpg)](https://acuitylaw.co.in/evolving-jurisprudence-of-homebuyers-under-the-insolvency-and-bankruptcy-code-2016/) July 25, 2023 ### [Evolving jurisprudence of homebuyers under the Insolvency and Bankruptcy Code, 2016](https://acuitylaw.co.in/evolving-jurisprudence-of-homebuyers-under-the-insolvency-and-bankruptcy-code-2016/) Introduction A booming population, growing income and rapid urbanization has made India one of the fastest-growing major economies of this century. As per the World Bank[i], India’s GDP grew from USD 37 billion in 1960 to USD 3.18 trillion in 2021, registering an annual average growth over 5 per cent[ii]. India’s real estate sector has… [Read more](https://acuitylaw.co.in/evolving-jurisprudence-of-homebuyers-under-the-insolvency-and-bankruptcy-code-2016/) --- ## Acuity Law - Website: https://acuitylaw.co.in - Contact: richagotech@gmail.com