• Sign In/Sign Up
  • Menu
  • +Clients Back

    • Get Free Legal Answers
    • Get Fee Estimates
    • Find Lawyers
  • +Lawyers

    • Case Diary & Office Manager
    • Post News & Artilces
    • Post Jobs & Internships
  • +Law Students

    • Campus Ambassadors
    • Find Jobs & Internships
    • Post News & Articles
    • Resource Sharing
  • +Law Schools

    • Post Admissions
    • Post Opportunities
    • Get Law School Rating

  • Home
  • News/Articles
  • Liquidation u/s 29A of IBC or 234 of companies act are applicable or not

Latest News

Back

Liquidation u/s 29A of IBC or 234 of companies act are applicable or not

Courtesy/By: Gowri  |  18 Aug 2021     Views:347

Introduction

In the Insolvency Bankruptcy Code is objectives of that the merged and corrected existing enactment identifying with re-association and bankruptcy goal of corporate people, organizations and people. Thewhole reason behind the plan of give and take or course of action is to resuscitate the organization. It has accentuated that when an organization is in liquidation, its resources are custodia legis, with the outlet going about as the caretaker for the conveyance of the liquidation domain. Section 230 of the Companies Act of 2013, to which response can be taken by the vendor designated under Section 34 of the Insolvency Bankruptcy code.

Insolvency and bankruptcy Board Regulation for liquidation

The Insolvency and Bankruptcy Board of India had given the Liquidation Process. The Regulations were altered on 25th July, 2019, according to which Regulation 2B was embedded in the Regulation. Guideline 2B clause (1) requires a trade off or plan proposed under Section 230 of the Act to be finished inside 90 days of the request for liquidation gave under the Insolvency Bankruptcy Code On January 06, 2020, another revision was acquainted with the Regulations and a stipulation was embedded to Regulation 2B clause (1) whereby it was explicitly expressed that a party ineligible to propose a goal plan under the Insolvency Bankruptcy Code couldn't be involved with a trade off or course of action under Section 230 of the Act

The object of the Insovency Bankcrptcy Code is to fill in as a gainful enactment to return the corporate account holder on its feet and doesn't serve only as a recuperation enactment for lenders. The Insolvency Bankruptcy Code bifurcates the interests of the corporate debt holder from that of its advertisers or the individuals who are in administration. Further, with the addition of arrangements like Section 29A, guarantees an organization might accomplish an economical recovery and that an individual who is the reason for the issue either by a plan or a default can't be a piece of the course of arrangement. 

The Supreme Court through the Arun Kumar Decision explained that regardless of whether Regulation 2B didn't exist, upon an amicable translation of the Insolvency Bankruptcy Code and the Act, it would be evident that a plan of give and take under Section 230 of the Companies  Act would occur in agreement of the basic objects of the Insolvency Bankruptcy Code Consequently, the basic item would then be to shield the organization from a corporate demise. The Supreme Court featured that it would prompt a show ludicrousness if the very people who are ineligible for presenting a goal plan, take part in the offer of resources of the organization in liquidation, are by one way or another allowed to propose a trade off or course of action under Section 230 of the Companies Act.

Conclusion

The disallowance set by the Parliament in Section 29A and Section 35(1)(f) of the Code should likewise append itself to a plan of give and take or course of action under Section 230 of the Companies Act, 2013, when the organization is going through liquidation under the support of the Code.

“This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, Legal Xpress shall not be responsible for any errors caused due to human error or otherwise.”


Document:


Courtesy/By: Gowri  |  18 Aug 2021     Views:347

News Updates

The Legal Framework of Bail Conditions in India: B...
25 Oct 2024     Views:5897
Changing an Arbitrator Mid-Proceeding: Legal Frame...
23 Oct 2024     Views:5321
IMF Retains India's FY25 GDP Growth Forecast at 7%...
22 Oct 2024     Views:5301
The Evolving Landscape of Russian Anti-Suit Injunc...
22 Oct 2024     Views:5090
Hyundai’s IPO vs Competitors: How the Auto Giant...
15 Oct 2024     Views:5113
The Validity of Arbitration Agreements Post Decree...
14 Oct 2024     Views:4762
SEBI Issues Checklist for AIFs, Their Managers, an...
08 Oct 2024     Views:5156
The Siemens v. Russian Railroads Case...
07 Oct 2024     Views:5148
Empowering Minds in Confinement: Bombay HC’s Lan...
03 Oct 2024     Views:5263
The Dynamics of Novation in Contract Law and Its I...
02 Oct 2024     Views:5447
SEBI Establishes Consistent Evaluation Standards f...
01 Oct 2024     Views:5153
Landmark Decision by Austrian Supreme Court on Arb...
30 Sep 2024     Views:5129
Key Considerations for Indian Commercial Claims...
25 Sep 2024     Views:5080
Boom or Bust: Africa’s Oil Giants Face Declining...
23 Sep 2024     Views:5198
The Growing Role of Arbitration in Intellectual Pr...
23 Sep 2024     Views:5158
Supreme Court Greenlights Sub-Classification of SC...
20 Sep 2024     Views:5479
SEBI's Employee Grievances Prompt Formation of Wor...
19 Sep 2024     Views:5309
Environmental Law in India: Challenges and Opportu...
18 Sep 2024     Views:6141
Navigating the New Legal Landscape of Exclusive Ju...
16 Sep 2024     Views:5272
The Anatomy of Joint Venture Breakups in India (an...
31 Jul 2024     Views:5615
The Integration of ESG in India's M&A Landscape...
31 Jul 2024     Views:5517
Future of AI in Legal Systems and Conflict Resolut...
21 Jul 2024     Views:5706
World Health Assembly Revises International Health...
21 Jul 2024     Views:5559
Pokemon GO Fans Concerned Over Restrictive New Ter...
21 Jul 2024     Views:5676
Landmark Judgment on Setting Aside Arbitration Awa...
21 Jul 2024     Views:5461
Understanding the Process of Issuing Summons in In...
11 Jul 2023     Views:8839
Understanding the Unlawful Activities (Prevention)...
10 Jul 2023     Views:7389
Understanding the Mental Health Act in India: A St...
09 Jul 2023     Views:7432
Combating Manual Scavenging in India: A Call for S...
07 Jul 2023     Views:7229
Impleadment in Supreme Court of India: A Comprehen...
05 Jul 2023     Views:8182
Unraveling the Distinction: Culpable Homicide vs. ...
03 Jul 2023     Views:7526
Understanding the Difference between Money Bills a...
02 Jul 2023     Views:6067
Understanding the Civil Procedure Code in India: A...
01 Jul 2023     Views:6844
The Rights of Criminals in India: Upholding Justic...
30 Jun 2023     Views:6107
Exploring the Differences between the US and India...
29 Jun 2023     Views:6113
What to Do If the Police Refuse to Register Your F...
26 Jun 2023     Views:6360
Timeline of Environmental Protocols: A Global Effo...
25 Jun 2023     Views:6059
How to Deal with Cheque Bounce Cases in India...
24 Jun 2023     Views:6039
Pursuing a Lucrative Litigation Career in Indian L...
22 Jun 2023     Views:6089
Understanding the Emergency Provisions of India: S...
21 Jun 2023     Views:6053
Environment Legislation in India: A Comprehensive ...
20 Jun 2023     Views:6409
Understanding the Emergency Powers of the Constitu...
18 Jun 2023     Views:5912
Understanding the Emergency Powers of the Constitu...
17 Jun 2023     Views:5938
Timeline of Same-Sex Laws in India: A Journey Towa...
16 Jun 2023     Views:6384
Sir Creek Dispute and Legal Implications...
15 Jun 2023     Views:6579
Jurisprudence of NDPS Laws in India: A Comprehensi...
14 Jun 2023     Views:6158
Impleadment Proceedings: A Comprehensive Guide to ...
13 Jun 2023     Views:6592
Understanding Continuing Mandamus: A Powerful Judi...
12 Jun 2023     Views:8555
Res Judicata: The Doctrine of Finality in Legal Pr...
10 Jun 2023     Views:6593
Mastering the Art of Legal Drafting: A Comprehensi...
08 Jun 2023     Views:6255
Order 1 Rule 10 of the Code of Civil Procedure (CP...
07 Jun 2023     Views:11896
Understanding the Laws of War: Protecting Humanity...
03 Jun 2023     Views:5977
Understanding the Code of Criminal Procedure (CRPC...
02 Jun 2023     Views:6825
The National Drug and Psychotropic Substances (NDP...
01 Jun 2023     Views:6404
A Step-by-Step Guide: How to File an FIR in India...
31 May 2023     Views:6103
Zero FIR: An Effective Tool for Prompt Criminal Ju...
30 May 2023     Views:6338
Unveiling the Dissent of Judges in Judicial Judgme...
28 May 2023     Views:5980
Environmental Laws in India: Safeguarding Nature f...
25 May 2023     Views:6430
The Recusal of Supreme Court of India Judges from ...
24 May 2023     Views:6102
Understanding the Jurisdiction of the Supreme Cour...
23 May 2023     Views:6550
Article 142 of the Constitution of India: A Compre...
22 May 2023     Views:6759
Landmark Judgments in Arbitration Law in India: A...
21 May 2023     Views:6984
Landmark Cases on Anticipatory Bail in India: A Pa...
20 May 2023     Views:10876
Embracing the Future: How AI is Revolutionizing th...
18 May 2023     Views:6199
Understanding Narcotics Laws in India: A Comprehen...
17 May 2023     Views:6062
Understanding Indian Laws on Cross-Border Transact...
16 May 2023     Views:7191
ADR mechanism of legal adjudication in India...
15 May 2023     Views:5911
Validity of foreign arbitral award in India throug...
14 May 2023     Views:5923
Scope of Section 151 CPC...
13 May 2023     Views:7500
Detailed Overview on Section 482 of Crpc...
11 May 2023     Views:6447
Scope of Decree under CPC...
10 May 2023     Views:6004
Legal development of Arbitration Laws in India....
09 May 2023     Views:6046
Arbitration Laws in India...
07 May 2023     Views:5990
Impact of COVID-19 on Legal Industry...
06 May 2023     Views:8094
Chargesheet not having authority's valid sanction ...
02 May 2023     Views:6270
Same-Sex Marriage in India...
30 Apr 2023     Views:5913
National Commission for Women...
27 Apr 2023     Views:5765
Law making process of India....
26 Apr 2023     Views:6850
Bail Provisions in India...
25 Apr 2023     Views:5788
Life imprisonment in Criminal Law in India...
24 Apr 2023     Views:6201
Contempt of Court...
23 Apr 2023     Views:6043
The collegium system of Judiciary in India....
22 Apr 2023     Views:5728
Remarriage before Expiry of Limitation Period to f...
21 Apr 2023     Views:5729
Need for strict measure of NDPS laws in India....
20 Apr 2023     Views:5885
Nature of Offence under Section 138 of NI Act is Q...
19 Apr 2023     Views:8318
Order VII Rule 11 CPC: Plaint cannot be rejected m...
18 Apr 2023     Views:6926
Mediation: At the Dawn of Golden Age organized at ...
16 Apr 2023     Views:6010
Central Government's motto should be mediate, not ...
15 Apr 2023     Views:5725
Ambedkar Jayanti Celebrations...
14 Apr 2023     Views:5928
Supreme Court of India calls for Preventive Measur...
12 Apr 2023     Views:5496
Pursuing LL.M is not break in Law Practice, Rules ...
11 Apr 2023     Views:5715
Law should take into consideration realities of co...
10 Apr 2023     Views:5548
Delhi High Court said that peeping into public bat...
08 Apr 2023     Views:6144
Delhi High Court denies bails to AAP's Satyendra J...
06 Apr 2023     Views:6266
Supreme Court’s Triple Talaq Judgement Would App...
30 Jan 2023     Views:5992
Article 311(1) | An Order of Removal From Service ...
26 Jan 2023     Views:6472
Leaders shouldn't disrespect the President or Pri...
17 Jan 2023     Views:5775
New bench will hear Ashwini Upadhyay's Supreme Cou...
15 Jan 2023     Views:5913
Person Who Drove Rashly with the Knowledge that it...
12 Jan 2023     Views:6497
The rigours of Section 37 of the NDPS Act cannot b...
11 Jan 2023     Views:6238
FIND A LAWYER




FIND A LAW SCHOOL



Most Read News Articles

  • Sabrimala Verdict (28 sept 2018) - A End of Taboo.
    On 07 Oct 2020    Views:96225
  • Case Analysis: Vellore Citizens Welfare Forum vs Union of India
    On 11 Dec 2020    Views:73789
  • Case Analysis: THE BERUBARI UNION CASE
    On 14 Dec 2020    Views:71208
  • DOCTRINE OF ELECTION UNDER TRANSFER OF PROPERTY ACT, 1882
    On 08 Jul 2020    Views:70346
  • A.K. Gopalan v. State of Madras (1950 AIR 27, 1950 SCR 88)
    On 08 Nov 2020    Views:59706
View all >>

Propertified Propertified Propertified Propertified Propertified Propertified Propertified Propertified Propertified

86540

Lawyers Network

103860

Users

630

Cities Serving

114

Law Schools Network

59824

Law Students Network

About us

  • Company Profile

Indian Major Laws

  • Indian Constitution
  • IPC
  • CrPC
  • CPC
  • Companies Act
  • Indian Evidence Act
  • CGST Act
  • Limitation Act

Policies

  • Terms of Use
  • Privacy Policy
  • Refund & Cancellation

    Ads & Media

  • Resource Sharing
  • Advertiser(Sign Up/Login)
  • Media

    Careers

  • Internships
  • Jobs
  • Student Journalists

    HELP & SUPPORT

  • Contact Us
  • Grievances
  • Test

News

  • Legal News
  • Post Article
  • Post Interview

Legal Library

  • Central Acts
  • Deeds Drafts [1128 ]
  • Legal Maxims

Connect

Lawsisto Direct

 

  •  
  •  
DISCLAIMER
Copyright © Lawsisto Private Limited. All rights reserved.
Unless otherwise indicated, all materials on these pages are copyrighted by Lawsisto Private Limited. All rights reserved. No part of these pages, either text or image may
be used for any purpose. By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy and Content Policies.