INSOLVENCY AND BANKRUPTCYCODE:

The Insolvency and Bankruptcy Code passed by the Parliament is a welcome overhaul of the existing framework
dealing with insolvency of corporates, individuals, partnerships and other entities. It paves the way for much
needed reforms while focussing on creditor driven insolvency resolution

INSOLVENCY?
Insolvency is when an individual or organization is unable to meet its outstanding financial debt towards
its lender as it become due. Insolvency can be resolved by way of changing the repayment plan of the
loans or writing off a part thereof. If it cannot be resolved, then a legal action may lie against the
insolvent and its assets will be sold to pay off the outstanding debts. Generally, an official
assignee/liquidator appointed by the Government of India, realizes the assets and allocates it among the
creditors of the insolvent.

Insolvency is the state of being unable to pay the money owed, by a person or company, on time; those in a state of
insolvency are said to be insolvent.

In legal terminology, the situation where the liabilities of a person or firm exceed its assets. In practice, however,
insolvency is the situation where an entity cannot raise enough cash to meet its obligations, or to pay debts as they
become due for payment. Properly called technical insolvency, it may occur even when the value of an entity's total
assets exceeds its total liabilities. Mere insolvency does not afford enough ground for lenders to petition for
involuntary bankruptcy of the borrower, or force a liquidation of his or her assets.

BANKRUPTCY?
Bankruptcy is a concept slightly different from insolvency, which is rather amicable. A bankruptcy is
when a person voluntary declares himself as an insolvent and goes to the court. On declaring him as
‘bankrupt’, the court is responsible to liquidate the personal property of the insolvent and hand it out to
its creditors. It provides a fresh lease of life to the insolvent.

Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. In most jurisdictions,
bankruptcy is imposed by a court order, often initiated by the debtor.

Legal procedure for liquidating a business (or property owned by an individual) which cannot fully pay its debts out
of its current assets. Bankruptcy can be brought upon itself by an insolvent debtor (called 'voluntary bankruptcy') or
it can be forced on court orders issued on creditors' petition (called 'involuntary bankruptcy'). Two major objectives
of a bankruptcy are (1) fair settlement of the legal claims of the creditors through an equitable distribution of
debtor's assets, and (2) to provide the debtor an opportunity for fresh start. Bankruptcy amounts to a business-failure,
but voluntary winding up does not.

CORPORATE WORLD?
Corporate:
Corporate means relating to business corporations or to a particular business corporation.

The simple definition of a corporate world is the place where business ethics and laws apply and must be followed,
with certain other specific behaviors. That must be met in order to get ahead in such a world. It is labeled as a
'corporate world' because it is very different from the 'real world'. Corporate is a metaphor referring to the business
community.

IBBI?
The Insolvency and Bankruptcy Board of India (IBBI) is the most important institutional arrangement for the new
insolvency and bankruptcy regime. It was created as the refereeing institution with multiple tasks including creation
of regulations and control of agencies and professionals involved in the insolvency and bankruptcy business.
The IBBI was established on October 1, 2016 in accordance with the provisions of the ‘Insolvency and Bankruptcy
Code, 2016’. It was constituted as a Technical Committee under the IBBI regulations 2017.

WHY IBC 2016 [CODE] WAS REQUIRED?

• Before this Code, there was no single law dealing with insolvency and bankruptcy in India;

• Liquidation of Companies was being handled by the High Courts; • Individual cases were dealt with under the
Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920;

• Industrial Sickness cases and their financial restructuring were being handled by Sick Industrial Companies
(Special Provisions) Act (SICA), 1985;

• Recovery of financial debts being handled by: (i) Recovery of Debt Due to Banks and Financial Institution Act,
1993, and (ii) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
(SARFAESI) Act, 2002 and (iii) Companies Act, 2013. The Code consolidates overall 13 Acts in forced in India and
brings them under one overarching umbrella. The business failure affects all the stakeholders of a corporate
including its lenders, shareholders, creditors, suppliers, customers, workers and central and state
governments very adversely. It is, therefore, essential that the valuable resources including capital,
manpower, machinery and management, are pulled out of the failed / unviable businesses at the
earliest and are deployed in other profitable ventures. The viable businesses are, however, required to
be re-organized at the earliest. Need for an effective Insolvency and Bankruptcy Regime In a situation of
corporate insolvency, if the stakeholders can make rational and quick decisions to deal with the said
situation i.e. the decision about continuation of business, its re- organization or its closure, a law to deal
with the insolvency situation and the intervention of the courts may not be required. However, it has
been observed that the stakeholders fail to take such decisions to deal with the situation of insolvency
and, therefore, is the need for a corporate insolvency law. An economy needs an effective Bankruptcy
Law to deal with the situation where in the case of inability of a debtor to make the payment to its
creditors as per the payment schedule, the right of the creditors to get the control over the affairs of the
defaulting debtor does not get effected and that the debtor continues to have control over the affairs of
its business. Though, contractually the creditors may have the right to get control over the business of
the defaulting debtor, however, due to inefficiency of the prevailing legal system, they are not able to
get the said control without the intervention of the court. In case, the legal system provides for
adequate penalty and punishment for those who violate these contractual obligations, the intervention
of the courts / tribunals in these matters can be minimized. It is often said that “ in the absence of a
bankruptcy law a firm’s assets would be sold as scrap and value would be lost”. As such, the law to deal
with corporate insolvency / bankruptcy enables an economy to rescue the viable businesses and to pull
out the valuable economic resources out of the unviable businesses through the liquidation process at
the earliest without further depletion in the value of the assets so that the same can be deployed in
other profitable economic activity.

Functions of a Corporate Insolvency Regime

(i) It identifies the signs of insolvency at the earliest. (ii) Initiates the insolvency process quickly. (iii)
Creates a collective platform of the stakeholders to enable them to take decisions about the
future of the distressed entity (iv) Helps reorganization of the viable businesses; (v) Sends the
unviable businesses to liquidation at the earliest to arrest any substantial loss in value.

 Objectives of a Corporate Insolvency Regime A well designed

corporate insolvency regime has the following policy objectives: Objectives of a Corporate
Insolvency Regime (i) It should protect the interest of the creditors by reorganizing the viable
businesses to the extent possible and should quickly liquidate the unviable businesses. Early
completion of insolvency process also protects the interest of other stakeholders i.e. employees
and shareholders (ii) A corporate insolvency regime should help in promoting the growth of an
economy through efficient reallocation of resources, which otherwise remain locked in unviable
/ closed entities. (iii) An efficient corporate insolvency regime improves the rights of the
creditors and incentivizes them to increase the supply of credit in the market. As a result, not
only that the supply of credit in the market improves, the cost of credit also reduces improving
the viability and competitiveness of the businesses. (iv) An efficient corporate insolvency regime
improves business environment and thus encourages entrepreneurship. The same also results
in improving the investor confidence.

Insolvency Resolution Process

The Code makes a significant departure from the existing resolution regimen by shifting the
responsibility on the creditor to initiate the insolvency resolution process against the corporate
debtor. Under the existing legal framework, the primary onus to initiate a resolution process lies
with the debtor, and creditor may pursue separate actions for recovery, security enforcement
and debt restructuring

Insolvency Resolution Process for Companies and Limited

Liability Entities If the default is above Rs.1 Lakh (may be increased up to Rs.1 Cr by
the Government, by notification), the creditor may initiate insolvency resolution process. The
Code proposes two independent stages: 1. Insolvency Resolution Process – during which
financial creditors assess whether the debtor’s business is viable to continue and the options for
its rescue and resurrection; and 2. Liquidation– if the insolvency resolution process fails or
financial creditors decide to wind down and distribute the assets of the debtor.

The Insolvency Resolution Process

1. A financial creditor (himself or jointly with other financial creditors), an operational creditor
or the corporate debtor (through Corporate applicant i.e. corporate debtor itself; or an
authorised member, partner of corporate debtor; or a person who has control and supervision
over the financial affairs of the corporate debtor) may initiate corporate insolvency resolution
process in case a default is committed by corporate debtor. The Insolvency Resolution Process
2. An application can be made before the National Company Law Tribunal (NCLT) for initiating
the resolution process. Operational creditor needs to give demand notice of 10 days to
corporate debtor before approaching the NCLT. If corporate debtor fails to repay dues to
operational creditor or fails to show any existing dispute or arbitration, then the operational
creditor can approach NCLT. 3. Corporate insolvency process shall be completed within 180
days of admission of application by NCLT. Upon admission of application by NCLT, Creditors’
claims will be frozen for 180 days, during which time NCLT will hear proposals for revival and
decide on the future course of action. And thereupon, no coercive proceedings can be launched
against the corporate debtor in any other forum or under any other law, until approval of
resolution plan or until initiation of liquidation process. 4. NCLT appoints an interim Insolvency
Professional (IP) upon confirmation by the Insolvency and Bankruptcy Board (hereinafter, “the
Board”) within 14 days of acceptance of application. Interim IP holds office for 30 days only.
Interim IP takes control of the debtor’s assets and company’s operations, collect financial
information of the debtor from information utilities. 5. NCLT causes public announcement to be
made of the initiation of corporate insolvency process and calls for submission of claims by any
other creditors. 6. After receiving claims pursuant to public announcement, interim IP
constitutes the creditors’ committee. All financial creditors shall be part of creditors’ committee
and if any financial creditor is related party of corporate debtor, then such financial creditor will
not have any right of representation, participation or voting. Operational creditors should be
part of Creditors’ Committee (without voting right) if their aggregate dues are not less than 10%
of the debt. 7. Creditors’ committee shall meet first within seven days of its constitution and
decide by 75% of votes either to replace or confirm interim IP as Resolution Professional.
 Thereupon, Resolution Professional is appointed by the NCLT upon confirmation by the Board.
The creditors’ committee, with a majority of 75% votes, can change Resolution Professional any
time. 8. The creditors’ committee has to then take decisions regarding insolvency resolution by
a 75% majority voting. 9. If three-fourths of the financial creditors consider the case complex
and require extension of time beyond 180 days, the NCLT can grant a one-time extension of up
to 90 days. 10. Resolution Professional to conduct entire corporate insolvency resolution
process and manage the corporate debtor during the period. 11. Resolution Professional shall
prepare information memorandum for the purpose of enabling resolution applicant to prepare
resolution plan. A resolution applicant means any person who submits resolution plan to the
resolution professional. And upon receipt of resolution plans, Resolution Professional shall place
it before the creditors’ committee for its approval. 12. Once a resolution is passed, the
creditors’ committee has to decide on the restructuring process that could either be a revised
repayment plan for the company, or liquidation of the assets of the company. If no decision is
made during the resolution process, the debtor’s assets will be liquidated to repay the debt. 13.
The resolution plan will be sent to NCLT for final approval, and implemented once approved.

ADVANTAGES:
• Shorter time frames for every step in the insolvency process— right from filing a bankruptcy application to the
time available for filing claims and appeals in the National Company Law Appellate Tribunal (NCLAT), and Debt
Recovery Appellate Tribunals (DRAT);

• Shorter period of time bound insolvency resolution and supervision by insolvency professional, which will control
“Asset Stripping” by promoters before and after default.

• All parties know that if time bound resolution process fails the company will go into liquidation. This will help
avoid delaying tactics by Debtors.

• Promoters and other stakeholders can make proposals to propose Resolution Plan which inter-alia includes
financial/ debt restructuring.

• The above shall control extensive erosion of the value of assets in distressed companies and control transferring
assets out of the business.

• The Code separates commercial aspects of the insolvency proceedings from judicial aspects: (a) While Insolvency
Professionals (IPs) will deal with commercial aspects such as management of affairs of the corporate debtor,
facilitating formation of committee of creditors, organising their meetings, examination of the resolution plan, etc.,
(b) Judicial issues will be handled by Adjudicating Authorities (National Company Law Tribunal / Debt Recovery
Tribunal). (c) The role of the adjudicator will be on process issues: To ensure that all financial creditors were indeed
on the creditors committee, and that 75% of the creditors do indeed support the resolution plan.

• Creates a new class of insolvency professionals that will specialize in restructuring the sick companies.
• Code creates information utilities that will collate all information about debtors, financial creditors, operational
creditors and other debts to prevent serial defaulters from misusing the system.

• Time-bound settlement of insolvency resolution, will enable faster turnaround of businesses; • It is single law in
place of multiple laws and will remove the overlapping jurisdictions of various authorities.

• There is a paradigm shift from the existing ‘Debtor in possession’ to a ‘Creditor in control’ regime.

• Addresses the concerns of both creditors and debtors by creating a level playing field.

• Provides banks with much-needed muscle to deal with NPA accounts; enable them to realise the maximum value
out of an asset once a firm is declared bankrupt;

• Cumulative effects of all the above will improve India’s position in the World Bank’s Easy of Doing Business
ranking.

ACTS WHICH HAVE BEEN AMENDED

1. Indian Partnership Act, 1932;

2. Central Excise Act, 1944;

3. Income Tax Act, 1961;

4. Customs Act, 1962;

5. Recovery of Debt Due to Banks and Financial Institution Act, 1993;

6. The Finance Act, 1994;

7. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI)
Act, 2002;

8. The Sick Industrial Companies (Special Provisions) Act, 1985;

9. The Payment and Settlement Systems Act, 2007;

10. The Limited Liability Partnership Act, 2008; and

11. The Companies Act, 2013

. 12. The Presidency Towns Insolvency Act, 1909 and

13. The Provincial Insolvency Act, 1920.

The IBC have an overriding effect on all other laws relating to Insolvency & bankruptcy

BACKGROUND
At present, there are multiple overlapping laws and adjudicating forums dealing with financial failure and
insolvency of companies and individuals in India. The current legal and institutional framework does not aid lenders
in effective and timely recovery or restructuring of defaulted assets and causes undue strain on the Indian credit
system. Recognising that reforms in the bankruptcy and insolvency regime are critical for improving the business
environment and alleviating distressed credit markets, the Government introduced the Insolvency and Bankruptcy
Code Bill in November 2015, drafted by a specially constituted 'Bankruptcy Law Reforms Committee' (BLRC)
under the Ministry of Finance. Trilegal worked with the BLRC to assist with the drafting of the bill.

After a public consultation process and recommendations from a joint committee of Parliament, both houses of
Parliament have now passed the Insolvency and Bankruptcy Code, 2016 (Code). While the legislation of the Code is
a historical development for economic reforms in India, its effect will be seen in due course when the institutional
infrastructure and implementing rules as envisaged under the Code are formed.

THE CODE
The Code offers a uniform, comprehensive insolvency legislation encompassing all companies, partnerships and
individuals (other than financial firms). The Government is proposing a separate framework for bankruptcy
resolution in failing banks and financial sector entities.

One of the fundamental features of the Code is that it allows creditors to assess the viability of a debtor as a business
decision, and agree upon a plan for its revival or a speedy liquidation. The Code creates a new institutional
framework, consisting of a regulator, insolvency professionals, information utilities and adjudicatory mechanisms,
that will facilitate a formal and time bound insolvency resolution process and liquidation.

The Code repeals the Presidency Towns Insolvency Act, 1909, and Provincial Insolvency Act, 1920, as
well as amends 11 legislations, including: 1. Indian Partnership Act, 1932 2. The Companies Act, 2013 3.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; 4.
Limited Liability Partnership Act, 2008, 5. Sick Industrial Companies (Special Provisions) Repeal Act, 2003
To avoid any further litigation in insolvency proceedings, the Code will have an overriding effect over all
other laws .It is specifically provided that civil courts or authority not to have jurisdiction and also cannot
grant any injunction. The Code as a new law, replacing over a dozen laws, when implemented post the
infrastructure being put in place, will prove to be the most important step in evolving the regimen of
recovery of bad debts. Moreover, there will be a definite surge in economic growth in view of the rigid
timeframe prescribed in the Code for resolution of insolvency and liquidation proceedings.

KEY HIGHLIGHTS
1. Corporate Debtors: Two-Stage Process

To initiate an insolvency process for corporate debtors, the default should be at least INR 100,000 (USD 1495)
(which limit may be increased up to INR 10,000,000 (USD 149,500) by the Government). The Code proposes two
independent stages:

Insolvency Resolution Process, during which financial creditors assess whether the debtor's business is viable to
continue and the options for its rescue and revival; and

Liquidation, if the insolvency resolution process fails or financial creditors decide to wind down and distribute the
assets of the debtor.

(a) The Insolvency Resolution Process (IRP)

The IRP provides a collective mechanism to lenders to deal with the overall distressed position of a corporate
debtor. This is a significant departure from the existing legal framework under which the primary onus to initiate a
reorganisation process lies with the debtor, and lenders may pursue distinct actions for recovery, security
enforcement and debt restructuring.

The Code envisages the following steps in the IRP:

(i) Commencement of the IRP

A financial creditor (for a defaulted financial debt) or an operational creditor (for an unpaid operational debt) can
initiate an IRP against a corporate debtor at the National Company Law Tribunal (NCLT).

The defaulting corporate debtor, its shareholders or employees, may also initiate voluntary insolvency proceedings.

(ii) Moratorium

The NCLT orders a moratorium on the debtor's operations for the period of the IRP. This operates as a 'calm period'
during which no judicial proceedings for recovery, enforcement of security interest, sale or transfer of assets, or
termination of essential contracts can take place against the debtor.

(iii) Appointment of Resolution Professional

The NCLT appoints an insolvency professional or 'Resolution Professional' to administer the IRP. The Resolution
Professional's primary function is to take over the management of the corporate borrower and operate its business as
a going concern under the broad directions of a committee of creditors. This is similar to the approach under the UK
insolvency laws, but distinct from the "debtor in possession" approach under Chapter 11 of the US bankruptcy code.
Under the US bankruptcy code, the debtor's management retains control while the bankruptcy professional only
oversees the business in order to prevent asset stripping on the part of the promoters.

Therefore, the thrust of the Code is to allow a shift of control from the defaulting debtor's management to its
creditors, where the creditors drive the business of the debtor with the Resolution Professional acting as their agent.

(iv) Creditors Committee and Revival Plan

The Resolution Professional identifies the financial creditors and constitutes a creditors committee. Operational
creditors above a certain threshold are allowed to attend meetings of the committee but do not have voting power.
Each decision of the creditors committee requires a 75% majority vote. Decisions of the creditors committee are
binding on the corporate debtor and all its creditors.

The creditors committee considers proposals for the revival of the debtor and must decide whether to proceed with a
revival plan or liquidation within a period of 180 days (subject to a one-time extension by 90 days). Anyone can
submit a revival proposal, but it must necessarily provide for payment of operational debts to the extent of the
liquidation waterfall.

The Code does not elaborate on the types of revival plans that may be adopted, which may include fresh finance,
sale of assets, haircuts, change of management etc.

(b) Liquidation

Under the Code, a corporate debtor may be put into liquidation in the following scenarios:
(i) A 75% majority of the creditor's committee resolves to liquidate the corporate debtor at any time during the
insolvency resolution process;

(ii) The creditor's committee does not approve a resolution plan within 180 days (or within the extended 90 days);

(iii) The NCLT rejects the resolution plan submitted to it on technical grounds; or

(iv) The debtor contravenes the agreed resolution plan and an affected person makes an application to the NCLT to
liquidate the corporate debtor.

Once the NCLT passes an order of liquidation, a moratorium is imposed on the pending legal proceedings against
the corporate debtor, and the assets of the debtor (including the proceeds of liquidation) vest in the liquidation estate.

Priority of Claims

The Code significantly changes the priority waterfall for distribution of liquidation proceeds.

After the costs of insolvency resolution (including any interim finance), secured debt together with workmen dues
for the preceding 24 months rank highest in priority. Central and state Government dues stand below the claims of
secured creditors, workmen dues, employee dues and other unsecured financial creditors. Under the earlier regime,
Government dues were immediately below the claims of secured creditors and workmen in order of priority.

Upon liquidation, a secured creditor may choose to realise his security and receive proceeds from the sale of the
secured assets in first priority. If the secured creditor enforces his claims outside the liquidation, he must contribute
any excess proceeds to the liquidation trust. Further, in case of any shortfall in recovery, the secured creditors will
be junior to the unsecured creditors to the extent of the shortfall.

2. Insolvency Resolution Process for Individuals/Unlimited Partnerships

For individuals and unlimited partnerships, the Code applies in all cases where the minimum default amount is INR
1000 (USD 15) and above (the Government may later revise the minimum amount of default to a higher threshold).
The Code envisages two distinct processes in case of insolvencies: automatic fresh start and insolvency resolution.

Under the automatic fresh start process, eligible debtors (basis gross income) can apply to the Debt Recovery
Tribunal (DRT) for discharge from certain debts not exceeding a specified threshold, allowing them to start afresh.

The insolvency resolution process consists of preparation of a repayment plan by the debtor, for approval of
creditors. If approved, the DRT passes an order binding the debtor and creditors to the repayment plan. If the plan is
rejected or fails, the debtor or creditors may apply for a bankruptcy order.

3. Institutional Infrastructure

(a) The Insolvency Regulator

The Code provides for the constitution of a new insolvency regulator i.e., the Insolvency and Bankruptcy Board of
India (Board). Its role includes: (i) overseeing the functioning of insolvency intermediaries i.e., insolvency
professionals, insolvency professional agencies and information utilities; and (ii) regulating the insolvency process.

(b) Insolvency Resolution Professionals

The Code provides for insolvency professionals as intermediaries who would play a key role in the efficient working
of the bankruptcy process. The Code contemplates insolvency professionals as a class of regulated but private
professionals having minimum standards of professional and ethical conduct.

In the resolution process, the insolvency professional verifies the claims of the creditors, constitutes a creditors
committee, runs the debtor's business during the moratorium period and helps the creditors in reaching a consensus
for a revival plan. In liquidation, the insolvency professional acts as a liquidator and bankruptcy trustee.

(c) Information Utilities

A notable feature of the Code is the creation of information utilities to collect, collate, authenticate and disseminate
financial information of debtors in centralised electronic databases. The Code requires creditors to provide financial
information of debtors to multiple utilities on an ongoing basis. Such information would be available to creditors,
resolution professionals, liquidators and other stakeholders in insolvency and bankruptcy proceedings. The purpose
of this is to remove information asymmetry and dependency on the debtor's management for critical information that
is needed to swiftly resolve insolvency.

(d) Adjudicatory authorities

The adjudicating authority for corporate insolvency and liquidation is the NCLT. Appeals from NCLT orders lie to
the National Company Law Appellate Tribunal and thereafter to the Supreme Court of India. For individuals and
other persons, the adjudicating authority is the DRT, appeals lie to the Debt Recovery Appellate Tribunal and
thereafter to the Supreme Court.

In keeping with the broad philosophy that insolvency resolution must be commercially and professionally driven
(rather than court driven), the role of adjudicating authorities is limited to ensuring due process rather than
adjudicating on the merits of the insolvency resolution.

CONCLUSION
India currently ranks 136 out of 189 countries in the World Bank's index on the ease of resolving insolvencies.
India's weak insolvency regime, its significant inefficiencies and systematic abuse are some of the reasons for the
distressed state of credit markets in India today. The Code promises to bring about far-reaching reforms with a thrust
on creditor driven insolvency resolution. It aims at early identification of financial failure and maximising the asset
value of insolvent firms. The Code also has provisions to address cross border insolvency through bilateral
agreements and reciprocal arrangements with other countries.

The unified regime envisages a structured and time-bound process for insolvency resolution and liquidation, which
should significantly improve debt recovery rates and revitalise the ailing Indian corporate bond markets.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be
sought about your specific circumstances.

INSTITUTIONS UNDER THE IBC-2016:

1. Insolvency Professional Agencies (IPAs)
2. Information Utilities (IUs)
3. Insolvency Professionals (IPs)
4. Insolvency Professionals Entities
 5. Adjudicating Authorities :NCLT and DLT
6. Appellate Authorities: NCLAT and DLAT

IMPACT:
Introduction:
the “Insolvency and Bankruptcy Code, 2016” (IB 2016) is a big boost to Ease of Doing Business in India and would
facilitate investment leading to higher GDP and economic development. It will also give a quantum leap to the
functioning of the credit market and would take India from among relatively weak insolvency regimes to becoming
one of the world's best insolvency regimes. IBC 2016 provides for time bound Resolution Process for Corporate
Persons, Individuals and Partnership Firms. It is built on intuitional pillars viz. Insolvency Professionals, Insolvency
Professional Agencies, Information Utilities, Adjudicating Authorities (NCLT, NCLAT, DRT, DRAT) and
Insolvency and Bankruptcy Board of India.

• Government plans a legislation that will empower the Reserve Bank of India to deal much more effectively with
stressed assets than before to resolve banks' bad loans, a long-festering issue that has been holding back the
economy from achieving its full potential.

• Bad loans rose by over Rs 1 lakh crore in the first nine months of last fiscal to Rs 6.07 lakh crore by December 31,
2016, minister of state for finance Santosh Gangwar had said in written reply to the Rajya Sabha.

• Public sector banks' gross bad loans stood at Rs 5.02 lakh crore at the end of March 2016, up from Rs 2.67 lakh
crore at the end of March 2015.

• High NPAs have held back lending and prevented banks from lowering interest rates further, which has in turn
discouraged private investment, badly needed to speed up growth.

• Banks have been reluctant to resolve NPAs through settlement schemes or sell bad loans to asset reconstruction
companies for fear of being hauled up by investigation agencies.

1. 35 Corporate Insolvency Resolutions In Progress:

The Insolvency and Bankruptcy Code passed by the Parliament is a welcome overhaul of the existing framework
dealing with insolvency of corporates, individuals, partnerships and other entities. It paves the way for much
needed reforms while focussing on creditor driven insolvency resolution

At least 35 corporate insolvency resolution processes are going on under the Insolvency and Bankruptcy Code,
which is providing entities the "freedom to exit", IBBI Chairperson M S Sahoo said today.

The Code, which provides for market-determined and time- bound resolution process, is being implemented by the
Insolvency and Bankruptcy Board of India (IBBI). "At least 35 corporate insolvency resolution transactions are
going on, which involve default of about Rs 4,000 crore in a case," Sahoo said.
The Code, which came into effect from December 1, 2016, seeks to consolidate and amend laws relating to re-
organisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound
manner.

Speaking at a conference organised by not-for-profit group H2Life Foundation, Sahoo said the complete regime of
economic freedom is in place with the Code. "We had freedom of entry, to compete and now we have freedom to
exit...," he said, adding that the IBBI is ready for changes in the resolution as per the need of the hour.

H2Life Foundation President Vikas Sharma said the Code would not only streamline the insolvency process but also
help in boosting business growth of the country.

2. IBBI invites feedback on Regulations notified under Insolvency and Bankruptcy Code, 2016: The Insolvency and
Bankruptcy Board of India (IBBI) today invited comments from public, including the stakeholders and the
regulated, on the regulations already notified under the Code.
According to a press statement issued by the Finance Ministry, the comments received between 4th July, 2017 and
31st December, 2017 shall be processed together and following the due process, regulations will be modified to the
extent considered necessary.
It will be the endeavor of the IBBI to notify modified regulations by 31st March, 2018 and bring them into force on
1st April, 2018.
It is clarified that this is in addition to the extant approach of inviting public comments on draft regulations before
notifying them.
The Insolvency and Bankruptcy Code, 2016 (Code) is a modern economic legislation. Section 240 of the Code
empowers the Insolvency and Bankruptcy Board of India (IBBI) to make regulations subject to the conditions that
the regulations: (a) carry out the provisions of the Code, (b) are consistent with the Code and the rules made
thereunder; (c) are made by a notification published in the official gazette; and (d) are laid, as soon as possible,
before each House of Parliament for 30 days.
The IBBI has evolved a transparent and consultative process to make regulations. It has been endeavor of the IBBI
to effectively engage stakeholders in the regulation making process. The process generally starts with a working
group making draft regulations.
The IBBI puts these draft regulations out in public domain seeking comments threon. It holds a few round tables to
discuss draft regulations with the stakeholders. It takes advice of its Advisory Committee.
The process culminates with the Governing Board of the IBBI finalising regulations and the IBBI notifies them.
This process endevours to factor in ground reality, secures ownership of regulations and makes regulations robust
and precise, relevant to the time and for the purpose.

2.NEW INSTITUTIONS PROVIDED UNDER THIS CODE

 The Code has provided a host of new institutions to carry out the provisions of the Code, which are as below:
New Institutions Proposed under the Code 1. Insolvency Professionals 2. : will conduct the insolvency resolution
process, take over the management of a company, assist creditors in the collection of relevant information, and
manage the liquidation process. The Code bestows such powers and duties upon the insolvency professional as
required to efficiently drive the insolvency and liquidation process. Insolvency Professional Agency 3. : will accept
registration, examine and certify the insolvency professionals. Such agencies are to be registered with and certified
by the Insolvency and Bankruptcy Board of India. Insolvency and Bankruptcy Board of India The Board shall
consist of a Chairperson, three members from the Central Government not below the rank of Joint Secretary or
equivalent – one each to represent the Ministry of Finance, the Ministry of Corporate Affairs and Ministry of Law,
ex-officio; one member to be nominated by the Reserve Bank of India, ex officio; five other members to be
nominated by the Central Government. The Chairperson and the other members shall be persons of ability, integrity
and standing, who have shown capacity in dealing with problems relating to insolvency or bankruptcy and have
special knowledge and experience in the field of law, finance, economics, accountancy or administration. : This
body will have regulatory over-sight over the Insolvency Professional, Insolvency Professional Agencies and
Information Utilities. Under the Board’s supervision, these agencies will develop professional standards, codes of
ethics and exercise a disciplinary role over errant members leading to the development of a competitive industry for
insolvency professionals. The Board is responsible for making guidelines and regulation on matters of insolvency
and bankruptcy. 4. Insolvency Information Utilities: The Code provides for information utilities which would
collect, collate, authenticate and disseminate financial information from listed companies and financial and
operational creditors of companies. An individual insolvency database is also proposed to be set up with the goal of
providing information on insolvency status of individuals.

3. Enrol and Regulate Insolvency Professionals:

The Insolvency Professional Agency of Institute of Cost Accountants of India (IPA ICAI), a section 8 company
incorporated under the Companies Act 2013 has been promoted by the Institute of Cost Accountants of India on
30th November 2016 to enrol and regulate Insolvency Professionals (IPs) as its members in accordance with
provisions of the Insolvency and Bankruptcy Code 2016, Rules, Regulations and Guidelines issued there under. As
per the Regulations issued by Insolvency and Bankruptcy Board of India and Bye-Laws of the Agency, the
enrolment is open to professionals (Cost Accountants, Chartered Accountants, Company Secretary, Advocates and
Graduate who are having experience in management. [Please refer Regulation 5 of Insolvency and Bankruptcy
Board of India (Insolvency Professionals) Regulations 2016]. The above enrolment by Insolvency Professional
Agencies shall not discriminate on the grounds of religion, race, caste, gender, place of birth or professional
affiliation.

4Voluntary Liquidation of Corporate Person

The Code provides for voluntary liquidation proceedings by corporate person who intends to
liquidate itself and has not committed any default and can pay off its debts fully from proceeds
of liquidation of its assets. The law requires a declaration to that effect from majority of directors
of the company also stating that the company is not being liquidated to defraud any person. A
resolution passed to this effect shall be approved by creditors representing two-thirds value of the
company’s debts. Voluntary liquidation commences when such resolution is passed by the
creditors as above. Provisions of liquidation process apply to voluntary liquidation. Once the
debtor is completely wound up and assets liquidated, the NCLT passes an order for its
dissolution.

3.ADJUDICATING AUTHORITY UNDER THJIS CODE 

At present, the High Courts, the Company Law Board (CLB), the Board for Industrial and Financial Reconstruction
(BIFR) and Debt Recovery Tribunal (DRT) are having overlapping jurisdiction in the matter of debt recovery and
restructuring. This gives rise to systemic delays and complexities in the process. The code intends to overcome these
challenges and aims to reduce the burden on the courts as all litigation will be filed under the Code as under:
Adjudicating Authority under the Code. Under Part II, Chapter VI of the Code, National Company Law Tribunal
(NCLT) would be adjudicating authority for insolvency resolution and liquidation of Companies, Limited Liability
Partnerships (LLPs), any entity with limited liability under any law and bankruptcy of personal guarantors thereof.
An appeal can be preferred from orders of NCLT to National Company Law Appellate Tribunal (NCLAT) within 30
days (15 days’ extension if there is sufficient ground). Jurisdiction is territorial based on location of registered office
of corporate person. Orders of NCLAT are appealable on a question of law to the Supreme Court within 45 days.
Vide its notification dated June 01, 2016, the Central Government has constituted 11 (eleven) Benches of the NCLT
in exercise of its powers under sub-section (1) of section 419 of the new Companies Act, 2013. Of the said 11
benches, two shall be situated in New Delhi, and one each at Ahmedabad, Allahabad, Bengaluru, Chandigarh,
Chennai, Guwahati, Hyderabad, Kolkata and Mumbai.

4. Order of priority of payment of debts 

The Code provides for priority with regard to distribution of proceeds following liquidation of the company or
bankruptcy of individual or partnership as below: Order of priority of payment of debts i. Insolvency resolution cost
and liquidation cost ii. workmen’s dues (for 24 months before commencement) and debts to secured creditor (who
have relinquished their security interest) iii. Wages and unpaid dues to employees (other than workmen) (for 12
months before commencement) iv. Financial debts to unsecured creditors and workmen’s dues for earlier period v.
Crown debts and debts to secured creditor following enforcement of security interest vi. Remaining debts vii.
Preference shareholders viii. Equity Shareholders or partners Any surplus remaining after payment of debts shall be
applied in payment of interest accrued since commencement date.

4. IBBI (INSOLVENCY RESOLUTION PROCESS FOR

CORPORATE PERSONS) REGULATIONS 2016
Resolution Plan Regulation:
Resolution plan
(1) A resolution plan may provide for the measures required for implementing it, including but not limited to the
following) transfer of all or part of the assets of the corporate debtor to one or more persons;

b) sale of all or part of the assets whether subject to any security interest or not;

c) the substantial acquisition of shares of the corporate debtor, or the merger or consolidation of the corporate
debtor with one or more persons;

d) satisfaction or modification of any security interest;

e) curing or waiving of any breach of the terms of any debt due from the corporate debtor reduction in the amount
payable to the creditors;

g) extension of a maturity date or a change in interest rate or other terms of a debt due from the corporate debtor;

h) amendment of the constitutional documents of the corporate debtor; i) issuance of securities of the corporate
debtor, for cash, property, securities, or in exchange for claims or interests, or other appropriate purpose; and

j) obtaining necessary approvals from the Central and State Governments and other authorities.

5.INSOLVENCY PROFESSIONAL AGENCY (IPA)

Establishment of IPA of Institute of Cost Accountants of India:

The Insolvency Professional Agency of Institute of Cost Accountants of India (IPA ICAI), a section 8 company
incorporated under the Companies Act 2013 has been promoted by the Institute of Cost Accountants of India on
30th November 2016 to enrol and regulate Insolvency Professionals (IPs) as its members in accordance with
provisions of the Insolvency and Bankruptcy Code 2016, Rules, Regulations and Guidelines issued thereunder.
 7. INSOLVENCY PROFESSIONAL AGENCY (IPA)
Committees:
The following committees are to be constituted by the Insolvency Professional Agency, as required under
the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency
Professional Agencies) Regulations, 2016:

a) Advisory committee

b) Membership Committee

c) Monitoring Committee

d) Grievance Cell

e) Disciplinary Committee

f) Appellate Panel

g) Other Committees as per the requirements of the Companies Act, 2013 and as may be decided by
Governing Board from time to time for the furtherance of its objectives.

8. INFORMATION UTILITIES (IUS)

The Code also provides for Information Utilities to collect, collate, authenticate and disseminate financial
information of creditors and debtors in centralised electronic databases. The Code requires creditors to
provide financial information of debtors to multiple utilities on an ongoing basis. Such information would
be available to creditors, resolution professionals, liquidators and other stakeholders in insolvency and
bankruptcy proceedings. The purpose of this is to remove information asymmetry and dependency on the
debtor’s management for critical information that is needed to swiftly resolve insolvency. The Insolvency
and Bankruptcy Board of India notified Regulations in respect of Information Utilities on 31st March 2017.

9 CORPORATE INSOLVENCY RESOLUTION

PROCESS (CIRP)
Insolvency Resolution Process The Code makes a significant departure from the existing resolution
regimen by shifting the responsibility on the creditor to initiate the insolvency resolution process against
the corporate debtor. Under the existing legal framework, the primary onus to initiate a resolution process
lies with the debtor, and creditor may pursue separate actions for recovery, security enforcement and debt
restructuring. Insolvency Resolution Process for Companies and Limited Liability Entities If the default
is above Rs.1 Lakh (may be increased up to Rs.1 Cr by the Government, by notification), the creditor may
initiate insolvency resolution process. The Code proposes two independent stages: 1. Insolvency Resolution
Process – during which financial creditors assess whether the debtor’s business is viable to continue and the
options for its rescue and resurrection; and 2. Liquidation– if the insolvency resolution process fails or
financial creditors decide to wind down and distribute the assets of the debtor.
 NATIONAL COMPANY LAW TRIBUNAL (NCLT)

he National Company Law Appellate Tribunal (NCLAT) is a quasi-judicial body in India that adjudicates issues
relating to companies in India.[1] The NCLAT was established under the Companies Act 2013 and was constituted on
1 June 2016.
The NCLAT has eleven benches, two at New Delhi (one being the principal bench) and one each at Ahmedabad,
Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai.[2] Justice M.M. Kumar, a
retired judge of the Punjab and Haryana High Court has been appointed as President of the NCLAT. [1] The NCLAT
Bench at Bangalore began functioning on 18 July 2016.
The NCLAT has the power under the Companies Act to adjudicate proceedings:

1. Initiated before the Company Law Board under the previous act (the Companies Act 1956);
2. Pending before the Board for Industrial and Financial Reconstruction (BIFR), including those pending under
the Sick Industrial Companies (Special Provisions) Act, 1985;
3. Pending before the Appellate Authority for Industrial and Financial Reconstruction; and
4. Pertaining to claims of oppression and mismanagement of a company, winding up of companies and all
other powers prescribed under the Companies Act.
Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal. The decisions of NCLAT
may be appealed to the Supreme Court of India

LIQUIDATION PROCESS
1. The commencement of liquidation process takes place on account of:
Liquidation (i) failure to submit the resolution plan to the NCLT within the
prescribed period, or (ii) rejection of resolution plan for non-compliance
with the requirements of the Code, (iii) or decision of creditors’ committee
based on vote of majority, or (iv) contravention of resolution plan by the
debtor. 2. During liquidation, no suit or other proceedings shall be
instituted by or against the corporate debtor; except through the liquidator
on behalf of corporate debtor with permission of the NCLT. 3. The Resolution
Professional shall act as liquidator unless replaced. 4. The liquidator shall
form an estate of all assets of corporate debtor called the liquidation
estate. 5. Liquidator shall receive, verify and admit or reject, as the case
may be, the claims of creditors within the prescribed time. Creditor may
appeal to the adjudicator within 14 days. 6. A secured creditor may either
relinquish its security interest to the liquidation estate and receive on
first priority, the proceeds of the sale by the liquidator or realise its
security interest by enforcing, realising, settling, compromising or dealing
with the secured asset in accordance with such law as applicable to the
secured interest. Any surplus amount so realised shall be tendered to the
liquidator. In case of any shortfall in recovery, the secured creditors will
be paid by the liquidator out of the assets of the corporate debtor. However,
his claim will be junior to the unsecured creditors to the extent of the
shortfall. 7. Assets will be distributed by the liquidator in the manner of
priorities of debts laid in the Code (see below). Individual claimants or
those claiming to have any special rights on assets of the debtor will form
part of the liquidation process. 8. All sums due to any workman or employee
from the provident fund, the pension fund and the gratuity fund will be
considered as priority dues and is not to be included in the liquidation
estate and estate of bankrupt. 9. Upon the assets of corporate debtor
completely liquidated and the liquidator making an application, the NCLT
shall pass an order dissolving the corporate debtor.
AIM OF INSOLVENCY AND BANKRUPCY CODE:

 The aim of the Insolvency and Bankruptcy code is to conclude the procedure within half of the default time period
specified under the Code. The person or entity seeking the fast relief will have onus on the process at set-off and that
person or entity that sets-off the Fast-track process must support that the case is fit for the Fast-track. Therefore,
whosoever fills the application for fast track process under Chapter IV (Section 55) of the Insolvency and
Bankruptcy Code will have to file the application along with the proof of the existence of default as evidenced by
records available with an information utility or such other means as may be specified by the Board to establish that
the corporate debtor is eligible for fast track corporate insolvency resolution process. Fast Track Corporate
Insolvency Resolution Process The Code has provided for a fast track insolvency resolution process in respect of
corporate debtors, qualification to be notified by the Government. The process shall be completed in 90 days
(extendable by maximum 45 days). Provisions of insolvency process apply to fast track insolvency. This will be an
enabler for start-ups and small and medium enterprises to complete the resolution process quickly and move on.

Speech of Shri Arun Jaitley, Union Minister of Finance,

Corporate Affairs and Defence at the National

Conference on ‘Insolvency and Bankruptcy: Changing

Paradigm’ at Mumbai on Saturday, 19th August

2017.

It has now been a few months since the IBC has been implemented. I don’t think many of us, including

those who participated in demanding a law of this kind, and worked in the process of making it

happen, realised what the implications of this law would be. Because, for endless number of years,

we lived in a system which effectively protected the debtors and allowed the assets to rust away. If

we look at the situation as it existed, effectively there was hardly a law as far as individual or

partnership insolvency was concerned. You had insolvency laws in the States which were almost

ineffective. You had a provision in the Companies Act which provided for commercial insolvency, the

inability to pay debts, and a remedial action, but in an extremely slow-moving process, which usually

resulted in some sort of a settlement in the court. If a company eventually did go into liquidation, the
bulk of the assets got rusted and recoveries were almost impossible.

The SICA experiment was an absolute failure. It was brought in with an idea that companies which are

sick would be revived irrespective of whether they were capable of being revived or not. The only

effective purpose it served was that the debtors got an iron curtain around them. Then the iron

curtain, which prevented the creditors from making recoveries, continued indefinitely. Therefore,

effectively there was very little purpose that the SICA was able to achieve for which it was created.

As I heard in the later part of Dr. Urjit Patel’s speech just now, he was mentioning, the alternative

mechanisms the RBI did create for the banking system. These were intended to give the banking

system a lot of flexibility, in order to restructure the debts, in order to distinguish the sustainable part

of the debt from the unsustainable part of the debt, and to bring all the banking creditors together

and frame a scheme by which effectively some realisations could take place. This did meet with some

success, but eventually, I think, it was still extremely difficult for the creditors to be effectively able to

chase the defaulting debtors.

If we look at the mechanism of the Debt Recovery Tribunals which were created, it was intended that

the court procedure took too much time and, therefore, we must liberate these tribunals from the

rigidities of the court procedure, and enable our banking creditors at least or the financial institutions

to have a fast track process. But eventually the Debt Recovery Tribunals were somewhat faster, but

not as effective as envisaged.

I think, for some period of time, the effective law which did serve the meaningful purpose was the

SARFAESAI law. And I do recollect, I was in the Government at that time when the law was conceived

in the year 2000 or 2001. The overwhelming opinion was that it would be a per se unreasonable

process. Unreasonable, because our normal was that you have to wait till the cows come home in

order to realise the debt, and here is a procedure by which you go on day one and take over, after

notice, the assets of the debtor. Being a creditor, in our jurisprudence, was inherently putting you to
disadvantage. I remember, the officer concerned in the expenditure ministry and I had then teamed

up, framed and reframed the law, got it through a group of ministers, had difficulty in having it cleared

by Parliament, had greater difficulty in having the challenge sustained before the Court. Finally, I do

remember, from 12% or 13%, very large NPAs, it did succeed in bringing them down radically over the

next 2- 3 years. So that was probably one exception to this whole principle which proved to be

effective.

Now when the IBC was conceived, there was a small group of experts and the officer guiding them

was Mr. Tyagi, and they went into long consultations and did draft this law, made repeated

presentations. Much that Parliament comes in for criticism, I think, this probably would be a record of

some sort that in December 2015, the law got introduced in Parliament. It got referred to Joint

Committee which sat almost day after day, and presented its report in the month of March. Within 3

or 4 months, by May 2016, we had the law in place. Today, almost 15-16 months thereafter, we are

now already discussing the last 9 to 10 months of the implementation of the law.

I think, this has significantly reversed the debtor-creditor relationship. And when I am talking of

debtor, I am talking essentially of defaulting debtor. To raise a debt is nothing improper, that’s how

businesses work. Now the reasons for insolvency could be many. It could be genuine business losses

because of a particular sector of an economy, or some company getting into difficulty. It could be a

case of mismanagement. It could also be a case of deliberate mismanagement, including some

malfeasance on behalf of the promoters. And on account of multiple reasons, these insolvencies may

occur. I think, now that the law has been put in place, the competent authority, the NCLT has been

constituted. We are taking special effort to make sure that the infrastructure there is also

strengthened and brought in consonance with the requirements of this particular law.

How does one make it effective? For one, there are strict timelines which the legislation has, and I

think, it is extremely important that these timelines have to be adhered to. Conventionally Indian

courts always have two standards. When timelines are made for the executive, they normally maintain
these are binding. When timelines are made for judicial institutions, courts have conventionally held

that these are only directory. A typical case in point is, I remember as law minister, I had amended the

Code of Civil Procedure and put strict timelines. So pat came the judgement of the Supreme Court

that said that courts will decide their own time table, and that these are all directory, which are

mentioned by Parliament, these are not mandatory on us. So, I do hope, these remain as mandatory

as possible and these timelines are adhered to, because that is really the essence of the law. Speed

really will help in the effective implementation of the law itself.

The creation of the institution of the resolution professionals, because these are people with expertise

in different fields of finance, who are now going to be transformed into resolution professionals. They

will have to remain detached, they will have to avoid any possible conflict of interest, and they will

have to be extremely objective. Therefore, when they step into the shoes of management itself, it’s

their quality of professionalism which will ensure how quickly the resolution takes place.

It is not merely the resolution which will be the eventual target, it will also be as to what happens

during the pendency itself. That is where there is a grey area. It is the judicial pronouncements which

really resolve all the grey areas and then define them in black and white. A legislation is a skeleton

structure normally. The flesh and blood to it is provided by the judicial interpretation. Therefore, the

manner in which a company before the IBC is to run during the proceedings, does its business comes

to a standstill? How does the normal operation take place? And I think, the powers in my own reading

under section 17 and the subsequent paragraphs and clauses of the section of the Act are absolutely

clear, and if some purposive interpretation is given to them, the resolution professional itself, by

themselves or upon the direction of the tribunal, could be further empowered to make sure that the

effective functioning of the company doesn’t come to a standstill. Because if it comes to standstill,

then let alone resolving the insolvency, one will only be adding to it by allowing existing operations to

come to a standstill, with its assets getting devalued over a period of time. That is something they will

probably have to avoid. Therefore, you will require effective supervision and directions to that effect

as far as the tribunals are concerned, therefore, the powers of the Resolution Professional will also
have to be very clearly defined. There is a role for the Committee of Creditors which has been provided

for, who has a direct and positive interest in making sure that all those assets and business themselves

are preserved.

This is not the only law that we have changed. We have changed the procedures as far as DRTs are

concerned, and we have changed the provisions of the SARFAESI law also, which provide for a very

liberalized regime as far as ARCs are concerned. I think, if we take the cumulative effect of all these

laws, the message now in the legislation is loud and clear, that the debtors will have to certainly make

sure that their debts are serviced. If they don’t, then there is an effective alternative mechanism by

which you exit, or you take in a partner, and some alternative mechanism by which businesses can be

saved. The ultimate object really is not the liquidation of assets, the ultimate object as a preference is

to save these businesses, get either the existing promoters with or without partners, or new

entrepreneurs to come in and make sure these valuable assets are preserved.

I think what is extremely important also is that 9-10 months may be too short a period to have any

major reactions on what improvements are further required. We probably will have to wait for a

period of time and then ensure as to how much of this law is made effective by various

pronouncements of the tribunals, the appellate tribunal, the courts which takes place and then over

a period of time, I think, what are the improvements in the law which are required to make sure that

the purpose for which it is been created is the purpose which is sub-served.

But one thing is very clear that the old regime by which the creditor would get tired chasing the debtor

and end up recovering nothing is now over. If a debtor has to survive, he will have to service his debts

or else he will have to make way for somebody else. I think this is the only correct way by which

businesses would now be run and this message I think has to go loud and clear to all.

I am extremely grateful to all of you, who are here, because most of you would be somewhat directly

or vicariously connected with this issue and we will be too eager to know from you as to what further
evolution either by a legislative process or by a process of judicial pronouncements in this branch of

the law would be required.

Thank you very much once again, Dr. Banerjee for having this conference