1. COMPANY SECRETARY IN PRACTICE
INSOLVENCY AND BANKRUPTCY CODE 2016
OPPORTUNTY TO COMPANY SECRETARIES BY
OMKAR V DEOSTHALE
COMPANY SECRETARY IN PRACTICE

2. NEED FOR ONE LAW
No single umbrella legislation for Insolvency In India
Instead slew of legislations like:
Companies Act
SICA
RDDBFIA
SARFAESI
Presidency Town Insolvency Act, 1909
Provincial Insolvency Act ,1920
Various forums like DRT, High Court, BIFR, Civil Courts, etc.
Official Liquidator system is failure
DRT does not bring early results
Vicious Circle:
Increase in troubled corporates – ripple effect of less recovery – results in delayed recovery – results in loss of money and its value and thereby result in availability of less credit – results in slow recovery

3. Preamble of Code
AN ACT TO CONSOLIDATE AND AMEND THE LAWS RELATING TO REORGANISATION AND INSOLVENCY RESOLUTION OF CORPORATE PERSONS, PARTNERSHIP FIRMS AND INDIVIDUALS IN A TIME BOUND MANNER FOR MAXIMISATION OF VALUE OF ASSETS OF SUCH PERSONS, TO PROMOTE ENTREPRENEURSHIP, AVAILABILITY OF CREDIT AND BALANCE THE INTERESTS OF ALL THE STAKEHOLDERS, INCLUDING ALTERATION IN THE ORDER OF PRIORITY OF PAYMENT OF GOVERNMENT DUES AND TO ESTABLISH TO AN INSOLVENCY AND BANKRUPTCY BOARD OF INDIA, AND FOR METTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.

4. SCHEME OF THE ACT DEVIDED INTO 5 PARTS Part I – Preliminary
Part II – Insolvency Resolution and Liquidation of Corporate Persons
Part III - Insolvency Resolution and Liquidation of Partnerships and Individuals
Part IV – Insolvency Professionals, Agencies and Information Utilities
Part V - Miscellaneous

5. REGULATIONS
The Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations 2016
Insolvency and Bankruptcy Board of India (Model Bye Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016
The Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016
The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
The Insolvency and Bankruptcy Board of India (Liquidation process) Regulations, 2016

6. INSOLVENCY RESOLUTION PROCESS
Sections 6 to 32 of Code.
IP Process - Cr and Dr.xls
Resolution professional and Creditors Committee Driven process
75% of Financial Creditors are KINGS

7. Liquidation Section 33 of the Code
Section 44 – Beware of Preferential Transactions
Section 45 Undervalued Transaction
Section 50 Extortionate Arrangement
Distribution – Section 52 (Secured Creditors) Section 53 general

8. OTHER PROCESSES Fast Track Insolvency Process – 55 to 58
Voluntary Liquidation – Sections 59
Only if default has not occcured

9. Important Terms Financial Creditor Operational Creditor Default
Applicant
Adjudicating Authority – NCLT (for Corporates and LLPs)
Resolution Professional and Liquidator

10. OPPORTUNITY FOR CS – DISCUSSION FORUM
Resolution Professional
Consultant
NCLT Appearance
Restructuring Strategist (either for Creditor or Debtor)
Filling to Information Utility
Transactions to be entered into needs to be checked to avoid being banned transactions in Insolvency process

11. SPECIAL SKILLS TO BE ACQUIRED
Knowledge of functioning of Bank is must
Working Knowledge of Accounts and Finance
RP – Knowledge of management is must
Do a Due Diligence before getting into RP of any Company.
Company Secretary posses the required skills, Courage to enter in this area is must.

12. THANK YOU. CSOMKARDEOSTHALE@GMAIL.COM