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Byju's Founder <keyword id="1702989" type="General" weightage="100" keywordseo="Byju-Raveendran" source="Orion">Byju Raveendran</keyword>'s plea against the insolvency of <keyword id="19901241" type="General" weightage="20" keywordseo="Think-Learn" source="keywords">Think &amp; Learn</keyword> before the NCLAT was adjourned on Monday, as one of the members of the bench recused from the hearing. The matter will be placed before a bench headed by <keyword id="19916403" type="General" weightage="20" keywordseo="National-Company-Law-Appellate-Tribunal" source="keywords" meta.keywordsubtype="org" meta.entityname="National Company Law Appellate Tribunal" meta.hostid="345" meta.entityid="National Company Law Appellate Tribunal">National Company Law Appellate Tribunal</keyword> (NCLAT) Chairman Justice Ashok Bhushan, who will assign a different bench to hear the matter. Raveendran had filed a petition challenging the initiation of <keyword id="19965539" type="General" weightage="20" keywordseo="insolvency-proceedings" source="keywords">insolvency proceedings</keyword> against Think &amp; Learn, which runs edtech company Byju's. The matter was listed on Monday before a two-member Chennai-based bench of the NCLAT comprising Justice Sharad Kumar Sharma, Member (Judicial), and Jatindranath Swain, Member (Technical). However, Justice Sharma recused himself from the hearing, saying he had appeared as the counsel for the Board of Control for Cricket in India (<keyword id="19901245" type="General" weightage="20" keywordseo="BCCI" source="keywords" meta.keywordsubtype="org" meta.entityname="BCCI" meta.hostid="345" meta.entityid="BCCI">BCCI</keyword>) before his elevation. "I have appeared as a senior counsel for (the) BCCI. Since they are the main beneficiaries of this order, I cannot take this up," said Sharma. The Bengaluru bench of the National Company Law Tribunal (<keyword id="19901085" type="General" weightage="20" keywordseo="NCLT" source="keywords">NCLT</keyword>) on July 16 directed Corporate Insolvency Resolution Proceedings (CIRP), admitting the plea filed by the BCCI. The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.9 crore by Think &amp; Learn -- once India's most valuable startup worth an estimated $22 billion. NCLT has suspended the board of Think &amp; Learn Pvt Ltd as per the provisions of the IBC and had appointed an interim resolution professional (IRP) to take care of the debt-ridden firm. Raveendran challenged the NCLT order before the appellate tribunal NCLAT. He has also approached the Karnataka High Court. The high court had, on July 26 deferred Raveendran's plea to July 30. At the high court, Raveendran challenged the validity of the order and suspension of the NCLT order till the NCLAT hears the appeal.

NCLAT judge recuses from hearing Raveendran's plea against insolvency proceedings of Byju

The outbreak of <keyword id="8902449" type="UNKNOWN" weightage="20" keywordseo="covid-19-pandemic">Covid-19 pandemic</keyword> and the suspension of new proceedings under the Insolvency and Bankruptcy Code (<keyword id="192838" type="COMPANY" weightage="20" keywordseo="IBC">IBC</keyword>) is expected to result in significantly lower realisations, by 30-40 per cent for the financial creditors in FY20-21 and pose new challenges. Ratings agency, <keyword id="6354972" type="DOMAIN" weightage="20" keywordseo="icra">ICRA</keyword> expects the resolution of corporate insolvency resolution proceedings (CIRPs) would be impacted during FY2021 due to a decline in the number of CIRPs yielding a resolution plan as well as an increase in haircuts that lenders would have to take. The financial creditors could realise about Rs 600 - 700 billion in FY2021 through successful resolution plans from the IBC as compared to about Rs 1,000 billion realised in FY2020. On the other hand, says ICRA, suspension of fresh insolvency proceedings for a period of one year would ensure relief for the companies that are severely impacted by the Covid-19 pandemic and are unable to meet payments to their creditors. Realisations for financial creditors in FY2022 could be even lower due to the suspension of fresh insolvency proceedings for one-year period, it said. In the current fiscal, successful resolution of a large housing finance company is going to be the key determinant of the extent of amount the financial creditors would realise during the year. The ratings agency further notes that realisations from resolution plans could further suffer in FY2022 as fresh insolvency proceedings have been suspended for one-year period. New insolvency proceedings initiated in FY2022 are unlikely to get resolved in the same fiscal, given the typical average time period seen for CIRPs to conclude with a resolution plan is quite high. Commenting on the lower realisations from IBC, Abhishek Dafria, Vice President, ICRA, says, "The pandemic has thrown up new operational challenges for the various parties involved in a resolution process, this could result in limited cases yielding a resolution plan, especially in Q1 FY2021". "In the current environment, the on-going and even future CIRPs are likely to suffer from lower valuations and possible lesser interest from bidders due to the uncertainty across many sectors. This in turn may result in creditors having to agree on higher haircuts," he added. SEE ALSO: <a href="https://www.businessinsider.in/india/news/gvk-group-announces-salary-cuts-up-to-30-from-may-amid-coronavirus-pandemic/articleshow/76188350.cms">GVK Group announces salary cuts up to 30% from May amid coronavirus pandemic</a> <a href="https://www.businessinsider.in/business/startups/news/zoomcar-ceo-says-people-wont-book-uber-or-ola-and-wont-buy-cars-soon/articleshow/76188254.cms">Zoomcar CEO is betting on people not taking Uber and Ola⁠— and not buying cars in a hurry</a> <a href="https://www.businessinsider.in/defense/news/china-responds-to-prime-minister-narendra-modi-and-us-president-donald-trump-conversation/articleshow/76188158.cms">China responds to Modi-Trump conversation — ‘there is no need for any third party to intervene’</a>

Coronavirus will hit IBC realisations by 30-40% as government suspends new proceedings

Seeking to remove bottlenecks and streamline resolution process, the Cabinet on Wednesday approved further amendments to the more than three-year-old insolvency law wherein successful bidders will be ring fenced from any risk of criminal proceedings for offences committed by previous promoters of companies concerned. The Insolvency and Bankruptcy Code (<keyword id="192838" type="ORGANIZATION" weightage="20" keywordseo="IBC">IBC</keyword>), which came into force in 2016, has already been amended thrice. The latest changes pertain to various sections as well as introduction of a new section. The IBC (Second Amendment) Bill, 2019, is likely to be introduced in the current session of the Parliament, according to a senior official.
 The amendments are aimed at removing certain difficulties being faced during insolvency resolution process to realise the objectives of the Code and to further ease doing of business, an official release said.
 In a significant move, there would be ring-fencing of corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management/ promoters.
 It assumes significance against the backdrop of instances of enforcement agencies taking action in case of companies where the resolution process has already been completed.
 Providing immunity to the corporate debtor that has been resolved under the IBC process and also from encumbering such an entity's properties. The successful bidder should not have the risk of a corporate debtor being made an accused by any enforcement agency, the official said.
 According to the release, the amendments would remove bottlenecks, streamline the corporate insolvency resolution process and that protection of last mile funding would boost investment in financially-distressed sectors.
 "Additional thresholds introduced for financial creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP)," it added.
 The amended Act would also ensure that the substratum of the business of corporate debtor is not lost. It can continue as a going concern by clarifying that the licences, permits, concessions, clearances etc cannot be terminated or suspended or not renewed during the moratorium period, the release said.
 Law firm <keyword id="2839992" type="COMPANY" weightage="20" keywordseo="Cyril-Amarchand-Mangaldas">Cyril Amarchand Mangaldas</keyword> Managing Partner Cyril Shroff said the proposed changes, especially those related to ring-fencing, should help restore investor and banker confidence in the IBC process. "The government has rightly enhanced the focus on ensuring sustenance and recovery of businesses from bankruptcy, which is essential to sustain the economy and drive growth. Additional focus is now needed on boosting IBC related infrastructure, to hasten the recovery process," he noted. RAM RAM ABM
ABM

India amends bankruptcy law to protect winning bidders from paying the price for sins of the previous promoter

New Delhi, Mar 24 () The government on Tuesday raised the threshold for invoking insolvency under the IBC to Rs 1 crore from the current Rs 1 lakh with a view to prevent triggering of such proceedings against small and medium enterprises that are facing currently the heat of coronavirus pandemic.Talking to reporters, Finance and Corporate Affairs Minister Nirmala Sitharaman said the government may also consider suspending some key provisions of the Insolvency and Bankruptcy Code (IBC) in case the current situation following the outbreak of COVID-19 continued beyond April 30, 2020. "Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19, it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore from the existing threshold of Rs 1 lakh," Finance Minister Nirmala Sitharaman said, adding that it will be implemented straightaway. This will by and large prevent triggering of insolvency proceedings against micro, small and medium enterprises (MSMEs), she said while announcing a series of relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak. "If the current situation continues beyond April 30, 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for a period of six months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default," she said.Spelling out other relief measures, the finance minister said no additional fees will be charged for late filing during a moratorium period from April 1 to September 30 in respect of any document, return, statement etc, required to be filed in the MCA-21 Registry, irrespective of its due date. She further said that the mandatory requirement of holding meetings of the board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till next two quarters, i.e. till September 30. Besides, applicability of Companies (Auditor's Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier. This will significantly ease the burden on companies &amp; their auditors for the year 2019-20, she said.She also said that independent directors not attending single board meeting during the current fiscal will not be considered as violation of companies law. Requirement to create a deposit reserve of 20 per cent of deposits maturing during the financial year 2020-21 before April 30 2020 has been allowed to be complied with till June 30, 2020 while requirement to invest 15 per cent of debentures maturing during a particular year in specified instruments before April 30 may be done so before June 30, 2020. The finance minister also said that the newly incorporated companies which required to file a declaration for commencement of business within six months of incorporation will be given an additional six months. Besides, non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, will not be treated as a violation, she said. DP ANZ MKJ

Govt raises default threshold to Rs 1 cr for invoking insolvency proceedings against firms

By Quaid Najmi The tottering <keyword id="528556" type="General" weightage="20" keywordseo="Indian-aviation-sector" source="Orion">Indian aviation sector</keyword> hit fresh turbulence when early this month, another flourishing private airline was suddenly grounded owing to various problems, making it the 11th in a decade to �fall from the skies. Throwing their hands up, the <keyword id="11252024" type="General" weightage="20" keywordseo="go-first" source="Orion">Go First</keyword> budget airline's owners -- the Wadia Group -- filed voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) sending shockwaves through the entire <keyword id="34990" type="General" weightage="20" keywordseo="airline-industry" source="Orion">airline industry</keyword>. Go First was plagued by a peculiar problem -- the purported failure of the jet engine manufacturer, Pratt &amp; Whitney, USA, to supply engines/spares for its aircraft that grounded nearly 40 percent of the fleet for several months before it was compelled to totally suspend operations from the first week of May 2023. While the <keyword id="6354787" type="General" weightage="20" keywordseo="DGCA" source="Orion">DGCA</keyword> slapped a show-cause notice on the carrier for its abrupt actions that created havoc with thousands of flyers, Civil Aviation Minister Jyotiraditya Scindia seemed sympathetic to Go First grappling with the engine problems. While assuring that the government was helping out as best as possible, Scindia also called upon Go First to make alternative travel arrangements for its flyers to avoid inconveniencing them. According to Go First the application under the IBC came after the "ever-increasing number of failing engines supplied by PW" which led to the grounding of around 25 of its 61-strong Airbus A-320neo aircraft, or almost 40 percent of its fleet by April 30, 2023. Go First said in a statement that the groundings due to faulty PW engines increased from 7 percent of its fleet in December 2019 to 31 percent in December 2020 and 50 percent in December 2022, and blamed PW for giving assurances but failing to meet them. In view of this, the beleagured carrier suffered a whopping loss of nearly Rs 10,800 crore and even demanded Rs 8000 crore as compensation from the PW which could help Go First to meet its financial commitments/obligations. Besides, Go First had also coughed up Rs 5,657 crore to its lessors in the past couple of years comprising Rs 1,600 crore as lease rent for the non-operational grounded aircraft. Go First was also hampered by the PW reportedly not honouring the March 2023 award of the Emergency Arbitrator in Singapore to immediately provide the airline with at least 10 serviceable spare leased engines by April 2023 and 10 more per month till December 2023 to enable the carrier to resume full operations, financial rehab and survival. An aviation official said that after the NCLT processes the Go First application, it could appoint an interim Resolution Professional to take over and re-start operations, adding that a similar exercise in 2019 with another grounded private carrier failed to take-off. Though Go First's promoters have pumped in around Rs 3,200 crore in the past three years, coming to a total investment of nearly Rs 6,500 crore, plus support from the government's emergency credit line guarantee, all this failed to help as the airline kept incurring 100 percent of its operational costs and with a total loss of Rs 10,800 crores, it �succumbed'. In the NCLT plea, the 17-year-old airline which operated over 32 flights to 29 domestic and 10 international destinations, has sought several interim directions including restraining the lessors from taking back their aircraft, any adverse action by the DGCA, suppliers of essential goods-services, etc. Since launching low key operations in November 2005 as �GoAir', Go First gradually climbed up to become the fifth largest private carrier, consistently profitable and expanding till the PW �engine troubles' started from December 2020, hitting its operations and forcing it to ground in May 2023. However, the owner-promoters have already made it clear that they are keen to revive and not sell the venture or even exit this sector, which has witnessed many ups and downs with the practical �demise' of another 10 airlines in the past 10 years - or average one per annum! The Go First imbroglio came at a crucial juncture for the country's aviation sector which was soaring to pre-Covid 19 levels after the harsh pandemic and the ongoing peak summer holidays - and its full impact on the industry remains to be seen. (Quaid Najmi can be contacted at q.najmi@ians.in) SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/buried-toxic-waste-from-old-mining-operations-could-destroy-ecosystems-as-warming-thaws-the-arctic-permafrost/articleshow/100394167.cms">Buried toxic waste from old mining operations could destroy ecosystems as warming thaws the Arctic permafrost</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/53-of-largest-lakes-worldwide-losing-water-storing-capacity-due-to-global-warming-and-unsustainable-human-consumption/articleshow/100394475.cms">53% of largest lakes worldwide losing water storing capacity due to global warming and unsustainable human consumption</a>

Go First Gone: 11th private airline to 'drop' out of skies in a decade

New Delhi, Jun 14 () Rating agency S&amp;P will give credence to reforms in agriculture and labour market as well as easing of bad loan stress of banking sector while deciding future rating action on India, a senior official has said. S&amp;P Director &amp; Lead Analyst Sovereign &amp; IPF Ratings APAC Andrew Wood also said return of insolvency provision under the Insolvency and Bankruptcy Code (IBC), which was suspended for at least six months, and stronger regulator framework would be important in improving the health of Indian banks. Last week, S&amp;P Global Ratings had retained India's rating at lowest investment grade 'BBB-' for 13th year in a row, saying risks to India's long-term growth rate are rising, ongoing economic reforms, if executed well, should keep the country's growth rate ahead of peers. To a query on what specific reforms the rating agency would look at while determining the future rating action, Wood on Friday said the rating agency would give credence to reforms to domestic agriculture sector, liberalisation of labour market thereby job creation in manufacturing sector, improvement in infrastructure and business friendly foreign investment policy. "The reforms that we will give credence to is reforms in agriculture sector, into domestic markets. Those have been introduced and that's somewhat path breaking in history of India. It would help address the supply side bottlenecks that have cropped up in the economy in the past as well as to make agriculture sector more efficient," Wood said. He, however, emphasised on the need to create jobs in the manufacturing sector. "In order to achieve that labour market reforms are going to be important. Government appears to be making some headway in this issue." Stating that in India, states decide on labour laws and related reforms, Wood said, "But the BJP Government has a strong mandate and appears to be pushing harder on the states to get this done. We would be looking at liberalisation of labour markets further". Efforts to bring in foreign capital, private sector in infrastructure and improving business environment through that route is going to be very crucial, he said, adding attracting foreign direct investment (FDI) is also very important. With regard to financial sector, Wood said it is a specific weakness for India and IBC was "very constructive" in terms of starting to address issues and leading to more prudence in lending by PSBs. Also fund injection into public sector banks have led to improvements in their capital position over past few years, he said. "But more work is probably needed here." The government earlier this month promulgated an ordinance to amend the Insolvency and Bankruptcy Code (IBC) whereby fresh insolvency proceedings will not be initiated for at least six months starting from March 25 amid the coronavirus pandemic. Default on repayments from March 25, the day when the nationwide lockdown began to curb coronavirus infections, would not be considered for initiating insolvency proceedings for at least six months. "IBC which has been suspended for now for 6-12 months but return and continued implementation of stronger regulatory framework is important for health of sector. "It is not often in an economy that we see in India 10 years have been running at full-stream but banking sector remains weak for long period of time. So, it's going to be very crucial that banking sector problems are addressed in India," Wood added. S&amp;P Global Ratings has projected Indian to shrink by 5 per cent in current fiscal but growth is expected to bounce back to 8.5 per cent next fiscal. India's economic growth potential in medium and long-term is 6.5-7 per cent but reforms are critical for the country to get back to recovery after deep shock this year, it has said. JD BAL BAL

S&P to weigh labour, agri market reforms, improvement in financial sector for future ratings

New Delhi, Dec 11 () The Union Cabinet on Wednesday approved changes to the insolvency law, including provision to ring- fence successful resolution applicants from criminal proceedings with regard to offences committed by previous promoters of a company.
 The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at removing certain difficulties being faced during insolvency resolution process to realise the objects of the Code and to further ease doing of business, an official release said.
 The IBC (Second Amendment) Bill, 2019, seeks to change various sections as well as insert a new section in the law.
 According to the release, the amendments would remove bottlenecks, streamline the corporate insolvency resolution process and that protection of last mile funding would boost investment in financially-distressed sectors.
 "Additional thresholds introduced for financial creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP)," it added.
 In a significant move, there would be ring-fencing of corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management/ promoters.
 The amended Act would also ensure that the substratum of the business of corporate debtor is not lost. It can continue as a going concern by clarifying that the licences, permits, concessions, clearances etc. cannot be terminated or suspended or not renewed during the moratorium period, the release said. RAM RAM ANU
ANU

Cabinet clears amendments to insolvency law

New Delhi, Mar 24 () To help small companies facing the threat of defaults due to coronavirus-related lockdown, the government on Tuesday raised the threshold that would trigger insolvency proceedings to Rs 1 crore from current Rs 1 lakh.This raising of the threshold will help small and medium enterprises, Finance Minister Nirmala Sitharaman said.Also, the government will consider suspending Sections 7, 9, 10 of the Insolvency and Bankruptcy Code (IBC) for six months if the current economic situation continues beyond April, she said, adding this would help companies being forced into insolvency on default of loans. DP ANZ MRMR

Govt raises insolvency threshold to Rs 1 cr to help small cos

New Delhi, May 17 () Seeking to provide relief for the coronavirus pandemic-hit economy, the government will provide various relaxations under the insolvency law, including suspending fresh proceedings for up to one year, exempting COVID-19-related debt and coming out with a special framework for MSMEs. The measures were announced by Finance and Corporate Affairs Minister Nirmala Sitharaman on Sunday as part of the fifth and final tranche of the Rs 20-lakh crore stimulus package unveiled to boost the economy ravaged by the pandemic and subsequent lockdown. In a significant move that is expected to provide relief for various entities, the government has decided to suspend fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation. "After all, when lockdown gets lifted immediately, you are not sure how much of the businesses will get restored... No fresh insolvency proceedings will be initiated for up to one year," she said at a press meet here. Under the Insolvency and Bankruptcy Code (IBC), which provides for a time-bound and market-linked resolution of stressed assets, an entity can seek insolvency proceedings against a company even if the default is only one day. This is subject to the minimum threshold of Rs 1 crore. Earlier, the threshold was Rs 1 lakh. Sitharaman said hiking of the minimum threshold largely insulates micro, small and medium enterprises (MSMEs). According to the minister, COVID-19-related debt would be excluded from the definition of 'default' under the Code for the purpose of triggering insolvency proceedings. Further, a special insolvency resolution framework for MSMEs under Section 240A of the Code would be notified soon. L Viswanathan, partner at law firm Cyril Amarchand Mangaldas, said a special insolvency resolution is critical to allow MSMEs the opportunity to resolve existing end impending stress. "While the details are awaited, it is expected to balance speed and transparency and safeguards for all stakeholders. It is also likely to apply to the expanded definition of MSMEs announced a few days ago," he said, He also said that suspension of fresh initiation of proceedings would allow breathing space for companies to recover. "Since companies maybe required to take on additional debt to tide over this period, default on COVID related debt will be specifically excluded from the definition of the default under the Code," he added. DP RSN RAM HRS

Govt to exempt coronavirus-related debt of companies from insolvency law ambit

(Eds: Adding details) New Delhi, Mar 24 () The government on Tuesday extended the deadline for filing income tax and GST returns, raised threshold of default that could trigger insolvency of a company and waived charges on cash withdrawals from ATM of other banks as a precursor to a broader stimulus package for the economy distressed by the coronavirus outbreak.The last date for filing income tax returns for 2018-19 as well as that for linking PAN with biometric ID Aadhaar has been extended by three months to June 30. The last date for filing GST annual returns for last fiscal, which is due on March 31, has also been extended till the last week of June. As the outbreak of the Covid-19 pandemic and the lockdowns across cities create large scale economic disruption, Finance Minister Nirmala Sitharaman announced that the threshold of loan default that could trigger insolvency proceedings has been raised to Rs 1 crore from the existing Rs 1 lakh now. "This will by and large prevent triggering of insolvency proceedings against small, micro and medium enterprises (MSMEs)," she said at a news conference. "If the current situation continues beyond April 30, 2020, we may consider suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC) 2016 for a period of 6 months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default." With lockdowns restricting movements, the government waived a minimum balance fee on the savings bank account as well as allow charge-free withdrawals from any bank ATM for three months. Also, bank charges for digital trade transactions for all trade finance consumers have been reduced. For companies, it relaxed mandatory requirement of holding meetings of the board of directors by 60 days and waived the fee for late filings during the moratorium period. Stating that the announcements done on Tuesday were to ease the burden of compliance on citizens during the lockdown period, Sitharaman said an economic relief package was in works and it will be announced "sooner rather than later". "Every attention is being given to the economy. The Prime Minister himself is closely monitoring the situation," she said adding multi-layered composition of the Covid-19 Economic Task Force, announced by the Prime Minister last week, is already working. Inputs from sub-groups of the task force on various sectors of the economy are being analysed in detail. "And as I said, the economic package is being worked out. And as I said earlier, sooner we shall come with an announcement on that," she said. "The work of the task force which is multi-layered is already almost intensively nearing a conclusion. So, the task force based report and the action following the task force's report are almost at its peak. And that is why I have said, we will announce the economic package sooner rather than later." "Work is going on we are very close to announcing economic package," she said.The measures announced included an extension of the deadline for the tax settlement scheme, Vivad se Vishwas, to June 30, 2020, along with some other income tax filing requirements. The extension of timelines for GST returns for three months -- March to May, to the end of June without any late fees, penalty and interest for enterprises with turnover less than Rs 5 crore will provide significant relief for SMEs who are likely to be subject to intense liquidity pressures. While the extension of default threshold for IBC applicability from Rs 1 lakh to Rs 1 crore will act as a protection for MSMEs in the current crisis period and further, the intent to suspend creditor rights on corporate insolvency for a temporary 6-month period was also hinted by the finance minister. This will arrest any possible move by lenders to proceed under IBC in a scenario where corporate asset quality has already seen stress due to the continuing economic slowdown and is being further aggravated by the Covid-19 led lockdown. Also, due dates for notices as well as investment in saving instruments or investments for rollover benefit of capital gains under the Income Tax Act were extended to June 30. For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS and STT, a reduced interest rate of 9 per cent instead of 12/18 per cent will be charged for this period. No late fee/penalty shall be charged for the delay. Goods and Services Tax (GST) returns for the month of March, April and May can now be filed by last week of June with no interest, late fee and a penalty for companies with less than Rs 5 crore turnover. Others can file GST returns for these months by last week of June but the same would attract a reduced rate of interest of 9 per cent per annum from 15 days after the due date (current interest rate is 18 per cent per annum). No late fee and penalty to be charged, if complied before June 30. Also, the date for opting for the composition scheme has been extended till the last week of June. DP ANZ ANZ ANUANU

Govt extends tax deadlines, waives ATM charges, relaxes insolvency norm ahead of eco stimulus

New Delhi, Mar 8 () The National Company Law Appellate Tribunal (NCLAT) has dismissed the telecom department's plea citing delay in appeal against the NCLT order which held that the spectrum and licence of debt-ridden Aircel cannot be taken away during the insolvency resolution period.The Department of Telecommunications (DoT) had appealed against an order of the Mumbai bench of the National Company Law Tribunal (NCLT).In its plea, the DoT raised the issue as whether licence/spectrum to run a telecom company could be subject to moratorium during the insolvency proceedings or not.However, a three-member bench of the NCLAT held that the petition filed by the DoT was time barred under the provisions of Section 61 of the Insolvency &amp; Bankruptcy Code, 2016.Under the IBC, any appeal against order passed by the NCLT could be filed before the appellate tribunal within 30 days and the delay which can be condoned for reasonable cause in the NCLAT is only 15 days."This appeal was presented on February 20, 2020. Even giving the longest rope, if we calculate the period from December 20, 2019, the appeal is presented consuming 61 days. This being so, the appeal is time barred and for want of jurisdiction, we cannot entertain the appeal," said NCLAT."The appeal is dismissed as time barred," it said. The order was passed by the National Company Law Tribunal (NCLT) on November 27, 2019.The NCLT order had come over the plea filed by the resolution professional of the company over apprehension that its license and spectrum could be suspended after DoT issued demand noticeThough, the NCLT in its order accepted that licence and spectrum is an asset of DoT and Aircel has no right of ownership but said that clauses of moratorium are "squarely applicable on this Corporate Insolvency Resolution Process Proceedings, hence need not be interrupted or hampered by any authority."The NCLT further said that intent of IBC is prescribed to maximize the assets of the company as well as to protect the value so as to get good resolution plan for its revival."... within the scope and ambit of Insolvency and Bankruptcy Code, 2016 hereby instruct the concerned DoT authority not to make any attempt to cancel the impugned license issued in favour of the debtor company," it said.The NCLT had in March, 2018 admitted Aircel's insolvency plea.Aircel and its subsidiaries Aircel Cellular and Dishnet Wireless together owe around Rs 50,000 crore to creditors. KRH MKJ

NCLAT dismisses DoT's plea in Aircel licence moratorium matter citing delay in appeal

<ul><li>As of Thursday afternoon, its share prices saw an uptick of 5% to ₹22.60. </li><li><keyword id="6358200" type="ORGANIZATION" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> is the first company to undergo Cross Border Insolvency Protocol. </li><li>In April 2019, the company had decided to suspend all flights grounding over 110 aircrafts. </li></ul>Once one of India’s leading airlines Jet Airways has been dysfunctional for over six months now. Yet on a sleepy Thursday afternoon, its share prices went up by 5% to ₹22.6. The uptick in its shares came in right after the announcement came in on October 18 that the company would be the first to undergo insolvency proceedings under the Cross Border Insolvency Protocol along with the Insolvency and Bankruptcy Code (IBC) of India. The debt-ridden Jet Airways is also facing insolvency proceedings in The Netherlands too. It was declared bankrupt in the country after it failed to pay two European creditors. The Dutch court subsequently appointed a bankruptcy administrator, reported IANS. While the reason for the jump in share price can’t be determined, regulatory lawyer Sumit Agarwal said that there is absolutely no bar for someone to sell or buy the stock even when the company is in insolvency. “Equity shareholder can always buy or sell the stock on the stock exchange. The entire purpose of listing itself is to get the value of the company. There maybe some shareholders who believe that the company is before the NCLT and under the resolution plan, that will be far better than the management. While some may feel that the company is going down, they will sell the shares,” said Agarwal. The bankrupt airline has also been struggling to find a buyer. In April 2019, the company had decided to suspend all flights grounding over 110 aircrafts.

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