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INSOLVENCY AND BANKRUPTCY NEWS

• Having relinquished its rights and/or entitlement to pro-rata receive the Insolvency Resolution
cash balance (prot) earned by the principal borrower i.e. Essar Steel The provisions relating to CIRP came into force on December 1, 2016.
India Limited (ESIL), are the defendants discharged of their liability
under the personal guarantees? Since then, a total of 5258 CIRPs have commenced by the end of March,
2022 as presented in Figure 1. Of these, 3406 have been closed. Of the
• Whether in absence of the existence of jurisdictional fact, namely, CIRPs closed, 731 have been closed on appeal or review or settled; 586
“debt” as dened in section 2(g) of the Recovery of Debts and
Bankruptcy Act, 1993, either on account of assignment and/or have been withdrawn; 1609 have ended in orders for liquidation; and 480
extinguishment and/or discharge by relinquishment, does DRT has the have ended in approval of resolution plans (Figure 2). Sectoral
jurisdiction to entertain the Original Application? distribution of CDs under CIRP is presented in Figures 3-6.
Referring to the ratio laid down in “Lalit Kumar Jain’s case”, and also the
deed of guarantee and the approved resolution plan, the DRT held that the Figure 1: Corporate Insolvency Resolution Process
secured FCs have assigned their entire ‘debt’ from ESIL to the successful
resolution applicant i.e., ArcelorMittal India Private Limited (Arcelor)
under the resolution plan and have also accepted the amounts paid to them 5258
by Arcelor in discharge of the total debt owed by the ESIL. Hence, the debt
owed by the ESIL to the said FCs stood fully and nally satised. 4424
Accordingly, it was held that the Original Application does not survive as 3886
the cause of action for recovery of alleged debt of the FC has come to an
3406
end on assignment of the entire debt to the CD by FC in favour of Arcelor.
IBBI 2798
2081
Disciplinary Orders: The DC passed a few orders with a variety of 1900 1805 1852
directions for contraventions of the provisions of law. 1626
Sl. No. Order Against Professional Member of Contraventions found Directions 743 841 1059
537
1. IIV India Registered NA Chairperson of RVO shall not
Valuers Foundation, Governing Board of enroll any new 37 36 206
RVO the RVO is not an member for 1
Independent Director. a period of six
months. As on Mar 17 As on Mar 18 As on Mar 19 As on Mar 20 As on Mar 21 As on Mar 22
2. Mr. Anil Goel, IP IIIP ICAI No material No directions Admi ed Closed Ongoing
non-compliance observed
3. Mr. Mahesh Chand IOVRVF Concealment of material Cancellation of
Agarwal, RV facts of chargesheet being registration Note:
led against RV and These CIRPs are in respect of 5119 CDs.
non-cooperation with This excludes 1 CD which has moved directly from BIFR to resolution.
the Authority.
Source: Compilation from website of the NCLT and ling by IPs.
4. Ms. Esther Rani IOVRVF No material No directions
Jakkul, RV non-compliance observed
Figure 2: Mode of Closure of CIRPs
5. Mr. Vishwanath IIV RVF Pendency of the criminal Suspending the
Shridhar Prabhu, RV proceeding against RV. registration as
a registered
valuer till
exonerated of
the charges.
6. Ms. Rita Gupta, IP IIIP ICAI Withdrawal of money Suspension for
towards fee of IRP/RP a period of 1 Commen-
without the approval year. cement
of the CoC of Liquidation
7. Mr. Umesh Garg, IP IIIP ICAI No material No directions Appeal/
non-compliance observed Review/ Withdrawal
8. Mr. Rajiv Chakraborty, IIIP ICAI Engaging two rms for Arrange to Settled under Approval of
IP the same task of refund Section 12A Resolution
identication of resolution pre-CIRP Plan
applicant and eligibility cost of `
under section 29A of the 14,57,193/-in the
Code. account of CD.
IP is suspended
for a period 47% 22%
of 1 year. 17%
14%
Corporate Processeses
The data provided in this section regarding corporate processes is
provisional, as it is getting revised on a continuous basis depending on the
ow of updated information as received from IPs or the information in
respect of process changes. For example, a process may ultimately yield an
order for liquidation even after approval of resolution plan or may
ultimately yield resolution plan even after an order for liquidation.

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