Winding up refers to the process of closing a company and distributing its assets to settle debts. Under the Companies Act, 2013, winding up can be initiated by the National Company Law Tribunal (NCLT) if the company is unable to pay its debts. The concept of winding up is covered under Part I and II… Continue reading Winding Up under Companies Act, 2013
Section 10 of the Insolvency and Bankruptcy Code, 2016 permits the corporate debtor to file for initiation of the corporate insolvency resolution process on the occurrence of default. This provision enables a financially stressed company to proactively seek resolution through the adjudicating authority, rather than waiting for creditors to initiate action. Requirements: The corporate… Continue reading Section 10 – Corporate Insolvency Resolution Process (CIRP) under IBC, 2016
Section 8 of the Insolvency and Bankruptcy Code, 2016 deals with the process to be followed by an Operational Creditor before initiating Corporate Insolvency Resolution Process (CIRP) against a corporate debtor. This section mandates that an operational creditor must first deliver a demand notice or invoice demanding payment to the corporate debtor before filing… Continue reading Section 8 & 9 – Corporate Insolvency Resolution Process (CIRP) under IBC, 2016
Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) empowers a Financial Creditor to initiate the Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor in case of default. The objective of this provision is to provide a time-bound mechanism for the resolution of insolvency to maximize value and ensure financial discipline among debtors.… Continue reading Section 7- Corporate Insolvency Resolution Process (CIRP) under IBC, 2016
Voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016 read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 allows a solvent company to close its operations on its own. This means the company is not in financial distress and is able to pay off all its dues.… Continue reading Voluntary Liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016
Strike-off is a simplified process under the Companies Act, 2013, through which a company that is no longer active can apply to have its name removed from the official register of companies. This method is typically used when a company has stopped operating and wishes to close without undergoing a full liquidation process. A company… Continue reading Strike-Off under Section 248 of the Companies Act, 2013
India’s corporate landscape includes a significant number of Multinational Companies (MNCs) operating through wholly owned subsidiaries, joint ventures, or branch/liaison offices. These entities may at some stage consider closure or exit from the Indian market due to strategic realignment, financial distress, regulatory challenges, or other commercial considerations. Exit strategies for MNCs in India involve a… Continue reading "EXIT STRATEGIES FOR MULTINATIONAL COMPANIES IN INDIA: A COMPARATIVE LEGAL ANALYSIS OF CLOSURE MECHANISMS UNDER THE IBC AND COMPANIES ACT"
In a historic move towards bolstering international trade and economic integration, India has inked a groundbreaking Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) on March 10th, 2024. Spearheaded by Shri Piyush Goyal, Minister of Commerce and Industry, Food and Consumer Affairs, and Textiles, this modern and ambitious agreement marks… Continue reading Unlocking a New Era: EFTA Nations’ commitment of $100 Billion FDI for India
The Mediation Act, 2023 (“the Act”) was passed by the Rajya Sabha on 01.08 2023, the Lok Sabha on 07.08.2023 and given assent by the President on 14.09.2023. The Bill was introduced with the intention to provide quick and affordable justice to the population of the country. The objective of the Act is to promote,… Continue reading Analysing the Mediation Act, 2023
The Digital Personal Data Protection Act, 2023 was passed by both the houses and received President’s assent on 11.08.2023. The Act provides for the processing of digital personal data in a manner that recognises both the right of individuals to protect their personal data and the need to process such personal data for lawful purposes… Continue reading Key Highlights of The Digital Personal Data Protection Act, 2023
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