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Introduction There are 4 main parties in Insolvency and Bankruptcy Code 2016 (Hereinafter referred as IBC). They are Debtor(Corporate or individual), Creditor (Operational or Financial),  Insolvency Professionals. They are defined here for more details. Chapter VII of Part 2 and Chapter VII of Part 3, both contains the offences and penalties by various stakeholders in Insolvency Code. In this Post we will cover the offences by Corporate Debtor Individual/Firm Creditors Insolvency Professionals Bankrupt Other Offences  Offences by Corporate Debtor and Penalties  Concealment of Property by Officer of Corporate Debtor (Section 68) Offence If Corporate debtor had done below things within previous 12 months of starting insolvency process  (Insolvency commencement date) Willfully concealed property or part of property, or debt of Rs 10000 or more Fraudulently removed property or part of property worth Rs 10000 or more Willfully concealed the documents, or destroyed the doc...

Introduction Insolvency resolution process may be initiated when Company defaults on it's financial obligation. Section 6-11 of Insolvency and Bankruptcy Code(Hereinafter referred as IBC) deals with how to start such process against a Company who defaults on loan. IBC answers details such as who can initiate insolvency resolution process ? What all details needs to be submitted with application for such process ? Who all cannot initiate such process. We will discuss these things under following headings Who can initiate corporate insolvency resolution process ? Initiation by Financial Creditor Initiation by Operational Creditor Initiation by Corporate Applicant (Company itself) Who cannot make application for initiation of insolvency process Before delving to understand the initiation process, you must be familiar with meaning of Corporate Debtor, Financial Creditor and Operation Creditor . Who Can Initiate Corporate Insolvency Resolution Process ? Section 6 of the act provides 3 p...

Introduction We will explain 3 terms in this post Corporate debtor Financial Creditor Operational Creditor Corporate Debtor Corporate Debtor is company which owes money to others like Banks or investor etc. Section 3(8) of the Insolvency and Bankruptcy Code 2016 (Hereinafter referred as IBC) defines the Corporate Debtor as "Corporate Debtor" means a corporate person who owes a debt to any person. Financial Creditor These are banks or financial institution or rich individuals. They give loan and their relationship with Debtor is pure financial contract. " I give you loan, you return me with interest or some additional amount ". That's it. It also includes when loan by such bank is transferred or assigned to other bank or institution. When SBI gives a loan to company, they become Financial Creditor When LIC buys bods of a company, they become Financial Creditor. When you give loan to company when company says they will return you more money, you become financial ...

Introduction Firm and Individual don't see any growth and revival in business, and still have tons of loans to pay.   What would partnership firm/individual do when he is not able to serve this debt ? Well, they can do something which will clear all his debt, so that such businessman/partnership firm get discharge from legal obligation from paying back the loan. That something is bankruptcy. The person who manages lot of things during such process is Bankruptcy Trustee. In this Post we will cover below things: What is Bankruptcy Process Who is Bankruptcy Trustee  How is Bankruptcy Trustee Appointed Functions of Bankruptcy Trustee Rights of Bankruptcy Trustee Generally whoever will file for bankruptcy, his face will be like below. :)      What is Bankruptcy Process ? It's process. It's a legal Process wherein debts of debtor are discharged. This process also gives creditor some of their loan back by liquidating the asset...

Introduction Insolvency and Bankruptcy Code (Hereinafter referred as Code) provides in detail liquidation process from Section 33 to 54. The fact the company is going through liquidation mean company's business is not that good. It also mean that they have to pay money to lot of people. When money is realized, it has to be distributed to lot of people. What if Company owes 100 Crore, but after selling assets money collected is only 60 Crore? Who will get the priority over these money ? How should money to be distributed ?  Section 53 answers these questions. Lot of creditors or other people who want money from company are as below: At the end of the post, you will be able to rank above people in priority of getting their money back. Before going into order of who will get the money first, there is crucial and important provision related to Secured financial Creditor.  Provision related to Secured Creditor Let's understand these by example. Su...