1881 UNDER SECTION 138 OF THE ACT
The Negotiable Instruments (Amendment) Bill, 2017 was introduced in Lok Sabha on January 2, 2018. It seeks to amend the Negotiable Instruments Act, 1881. The Negotiable Instrument Act, 1881, defines promissory notes, bills of exchange, and cheques. It also specifies penalties for bouncing of cheques, and other violations with respect to such negotiable instruments. It focused on clarifying the jurisdiction related issues for filing cases for offence committed under Section 138 of the Act.
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RELATED TO INSOLVENCY RESOLUTION PROCESS
The Ordinance dated 23 November 2017 (the Ordinance), amending the Insolvency and Bankruptcy Code, 2016 (Code) was brought and the Ordinance was sought to be replaced by the Insolvency and Bankruptcy Code (Amendment) Bill, 2017 which was passed by the Lok Sabha late last year, and thereafter by the Rajya Sabha on 2 January 2018. Following the presidential assent on 18 January 2018, the Insolvency and Bankruptcy Code (Amendment) Act, 2017, the Ordinance aims to put safeguards in place by prohibiting willful defaulters from regaining control of the defaulting company. It has now been notified in the official gazette and has come into force retrospectively from 23 November 2017, i.e. the date of the Ordinance.
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NCLT FIRST INSOVENCY RESOLUTION SCHEME UNDER INSOLVENCY AND BANKRUPTCY ACT, 2016
The Insolvency and Bankruptcy Code, 2016 seeks to consolidate the existing framework by creating a single law for bankruptcy and insolvency. Pursuant to notification of the provisions relating to insolvency resolution and liquidation process under the Insolvency and Bankruptcy Code, 2016 (Code), several applications have been made to the National Company Law Tribunal (NCLT) since mid-December by creditors and corporate debtors themselves. Keeping up with the tight timelines under the Code, the judicial response has been swift and the NCLT has begun reviewing and admitting applications in line with the provisions of the Code, the following case has been the first case under which the NCLT, in its order has accepted the Resolution Plan.
“The defaulter’s paradise is lost. In its place, the economy’s rightful position has been regained”, WP(C)99/2018(SC)
Swiss Ribbons pvt Ltd & Anr.
UOI & Others
Questions to be decided:
1. Classification between financial and operational creditor discriminatory, arbitrary and violative of Art-14 of CoI ?
2. Sections 21 and 24 (Operational creditors have no vote in the committee of creditors) violative of Article 14?
3. Section 12A (withdrawal of insolvency application) is violative of Article 14 ?
4. Constitutional validity of section 29A ?
5. Section 53 (Operational creditors ranked below all other creditors, including other unsecured creditors who happen to be financial creditors) violate Article 14 ?
The National Company Law Appellate Tribunal (NCLAT) on 15.05.2019 stayed the McDonalds India Private Limited – Vikram Bakshi out-of-court settlement deal on the ground that the concerned deal cannot be allowed to go ahead until Housing and Development Corporation’s (Hudco) intervention application seeking Rs 195 crore dues from Mr. Bakshi were heard.