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IBC | Legislative Alert | CIRP | Creditors in a class, authorised  Further to the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 on 6 June 2018 (“ 2018 Ordinance ”), the Insolvency and Bankruptcy Board of India (“ IBBI ”) has substantially amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“ CIRP Regulations ”) vide the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018, dated 3 July 2018 (“ CIRP Amendment ”)  Key Highlights The key highlights of the CIRP Amendment are: timelines provided for various activities during the corporate insolvency resolution process (“ CIRP ”), including setting out the timeline for submission of claims, constitution of committee of creditors (“ COC ”), calling COC meetings, voting by members of COC, release of invitation of expression of interest (“ EOI ”), information memorandum (“ IM ”), evaluation matrix (“ EM ”), r...

Security of Home Buyers and other Allottees under IBC On 6 th  June 2018, the Insolvency and Bankruptcy Code, 2016 (“IBC”) was amended vide the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (“Ordinance”). Pursuant to the Ordinance, home buyers and allottees under the Real Estate (Regulations and Development) Act, 2016 (“RERA”) got the status of financial creditors under IBC (pursuant to the amendment to the definition of financial debt). This will enable the home buyers and other allottees [1]  to be able to invoke Section 7 of IBC against defaulting promoters and also have representation in the committee of creditors through an authorised representative (the authorised representative being a resolution professional appointed by the NCLT, as per the stated process). The amendments made by the Ordinance  inter alia brings  IBC in closer sync with Section 18 of RERA which affords a right to allottees to demand i) refund of the entire amount pai...

Are home buyers secured financial creditors or unsecured creditors under IBC? On June 6, the Insolvency and Bankruptcy Code, 2016 (IBC) was amended through the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (Ordinance). Following the ordinance, home buyers and allottees under the Real Estate (Regulations and Development) Act, 2016 (RERA) got the status of financial creditors under IBC (pursuant to the amendment to the definition of financial debt). This will enable the home buyers and other allottees (refers to buyers and long-term lessees under real estate projects) to be able to invoke Section 7 of IBC (which allows financial creditor(s) (either individually or jointly) to file an application in NCLT for initiating corporate insolvency resolution process against a defaulting company) against defaulting promoters. Further, they have representation in the committee of creditors through an authorised representative (the authorised representative being a resolutio...