Cyril Shroff On Large Corporate Insolvencies, Judicial Capacity And Promoter Resistance
By Team Legistify / 2017-06-17

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“The bankruptcy process is off to a flying start” says Cyril Shroff, leading lawyer and managing partner of Cyril Amarchand Mangaldas. Shroff is commenting on a decision to refer 12 top corporate defaulters to insolvency and bankruptcy proceedings.

This decision was made by an Independent Advisory Committee, set up by Reserve Bank of India, and will amount to a litmus test of both, the new Insolvency And Bankruptcy Act, 2016 (IBC) as well as the National Company Law Tribunal (NCLT) that too began functioning last year.

In a statement on June 13, RBI said loans to these 12 companies, as yet unnamed, amount to 25 percent of the non-performing assets in the banking system. That suggests they are all large companies. This will be the first time since their inception that the law and the tribunal will deal with large corporate insolvency proceedings.

Resolution Professional Vs Promoter And Board

For instance, among the first steps after the NCLT admits a case for insolvency will be for it to appoint an interim resolution professional. This is a newly created category of professionals tasked with

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