CCI213 | Advanced Corporate Insolvency Law and Practice

COURSE DESCRIPTION

Credit is indispensable for businesses in a free market economy. It is also inevitable that some businesses will fail. The need to deal effectively with business failure and its impact on various stakeholders and provide remedies to creditors in cases of default make insolvency law an integral part of the legal framework for business. The predictability and functioning of an insolvency regime are critical not just for a distressed company and its creditors, but also impact the broader business environment – the willingness of lenders to extend credit and the confidence with which an entrepreneur can embark on her entrepreneurial journey.

The Insolvency and Bankruptcy Code, 2016 (“IBC” or “Code”) brought about a comprehensive reform to the insolvency regime in India with the objectives of insolvency resolution or liquidation, in a time bound manner for maximization of value of assets, promoting entrepreneurship, the availability of credit and balancing the interests of all the stakeholders. Since the Code’s enactment, there have been several amendments to the Code and the regulations, and the tribunals, High Courts, and the Supreme Court have delivered numerous landmark orders to explain several conceptual issues, settle contentious issues and resolve grey areas.

This course seeks to develop an advanced understanding of corporate insolvency law, through an examination of several complex issues that the IBC deals with, including the process for the resolution or liquidation of a companies in distress, the treatment of different types of creditors and their claims, and how a company in distress is to be managed during the insolvency proceeding. The course will also deal with contentious issues that arise in insolvency proceedings, such as avoidance transactions and challenges to resolution plans. The course will be co-taught by an academic and a legal practitioner and will focus on areas of practical relevance in insolvency and liquidation proceedings. The course will be taught as a seminar and will largely be in the discussion format.

Learning Outcomes

A student will have the ability:

(a) to articulate the rationale behind the legal provisions and objectives of the law;

(b) to assist and advise insolvency professionals, corporate debtors, creditors, committee of creditors, resolution applicants and Adjudicating Authority in discharge of their roles; and

(c) to draft and plead proceedings and to negotiate with various stakeholders in the resolution process.