Insolvency & Bankruptcy Code vis-à-vis Foreign Direct Investment
1. Introduction
The paper is a take on the current Insolvency & Bankruptcy Code introduced by India and its consequent effect on foreign direct investment earned by the country. The authors believe that the two concepts are very closely linked.
The average time taken to resolve insolvency in India is higher than most countries in the world. According to World Bank data, the average resolution period in India is 4.3 years, which is very high as compared to 6 months in Japan, 8 months in Canada and Singapore and 1 year in UK and USA. The new code reduces the amount of time taken considerably to 180 with a one-time extension of 90 days.
Currently, India has the lowest debt recovery
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India prior to this had dated and redundant laws when it came to bankruptcy and insolvency provisions. The regime was not only flawed but was also inadequate and time consuming. The biggest discouraging factor for the investors and/or entrepreneurs was the fact that in order to recover from an ‘investment gone bad’, they would have to deal with a maze of scattered laws for the revival, to exit or for restructuring of the company. Nearly half a dozen laws covered the insolvency and bankruptcy provisions- ranging from the Indian Contract Act to SARFESI. The laws related to recovery of debts to banks, financial institutions, companies and winding up proceedings, sick companies, public and other statutory financial corporations. To further add to this complicated array of laws, was the hierarchy in debt recovery. The government being on top of the list and the unsecured creditors were at the bottom. The complex varying laws, involvement of multiple variables in debt recovery, various attempts by the debtor to stall recovery and creative lawyering resulted in never ending proceedings and ultimately the defeat of the purpose of recovering owed …show more content…
Surely, such a situation was not contemplated by the Parliament while enacting the SARFAESI Act and therefore the interpretation sought to be made by the learned counsel appearing on behalf of the Banks cannot be accepted by this Court as the same is wholly untenable in
3. The respondent, Mr Stephen Barker, had been employed by the appellant, Commonwealth Bank of Australia, for a number of years before being made redundant in March 2009 as a result of the bank restructuring the Corporation Financial Services (“CFS”) teams throughout the bank. He was informed that his employment with the bank would be terminated if he wasn’t redeployed within four weeks, but in the meantime had to turn in keys, mobile phone, and his access to his company email account, voicemail, and intranet was cut off and as such he did not receive any of the numerous emails that were sent to him about different openings for redeployment. His employment with the bank was terminated after the four week (plus an extra week for being over the
J. “Tangible Personal Property “ shall mean all of Debtor 's clothing, jewelry,furnture, furnishing, household goods, motorized vehicles, sport & hobby equipment and objects of art, valued at purchase of more then $200.00, that can not be claimed by a third party. K. “Income”, “Funds”, “Distributions” shall mean transfers, payouts, capital, and/or releases to Debtor and or third party agent of Debtor. To include to Debtor 's business interests. L.
2. Whether the lower court’s decision to nullify the Bill of Sale could be reversed, under the principle of in pari delicto potior est condition defendentis et possidentis. Holding 1. The court affirmed the lower court’s ruling to nullify the Bill of Sale on the grounds of undue influence and misrepresentation, not on Tally’s mental state. 2.
FDIC, which stands for Federal Deposit Insurance Corporation, was formed in 1933 after the bank failures during the 20’s. The FDIC provides insurance for deposits at banks. The FDIC can provide up to $250,000 in insurance for deposits per bank. SSA, Social Security Administration, was created in 1935 and provides social security benefits like retirement and disability benefits. TVA, Tennessee Valley Authority, was created to provide electricity, flood control, and economic development to the region known as the Tennessee Valley.
Comparatively, the respondent and her two sons were to be bequeathed ‘nothing’. Prior statement, in early 2008, alleges that deceased was to bequeath ‘everything’ to the appellant. Informal document did not entitle the appellant to china. His Honour concluded that the 2008 statement is contradictory to the informal document.
The author also finds out that the application of the law raises questions on the proportionality in which it is applied, particularly to petty theft cases. Because of the lack of clarity in which the law can be applied, legislatures and citizens have the right to redefine the law and its
However, it must be determined whether Das’s promise to come until Monday constitutes sufficient consideration. Since, no deposit was made that is there was not sufficient consideration. Das would have to prove that he gave some sort of consideration to Ali to keep the offer open and if Das has taken a bank loan, the court may consider it as a valid consideration. Otherwise, the agreement does not stand according to the law. Therefore, Das cannot have any legal action against
Issue 6- Does the Act violate the Procedural Due Process? Conclusion 1.
It seems that debt has become a norm in today’s society; people do not flinch at the sound of the word or attempt everything in their power to not succumb to it. When debt was a feared concept, people ran away from it. However today it seems that people are somewhat forced into a life of debt. The piece by Margeret Atwood, “Debtor’s Prism” is one about how the idea of debt has been deeply woven into our literature, social structure, and culture. Since the recession began in late 2007, Atwood takes a unique perspective of the history behind debt and the meaning of having been pawned.
The Court held that the statutory scheme constituted a prior restraint and hence was invalid
How should the court rule on the bank 's motion? Explain by taking the facts of the case
Here a compensation tribunal was set up to compensate the families of victims who had died in the Stardust tragedy. The grieving father of one victim sought a review of a decision made by the tribunal to award the mother of a victim compensation and the father no compensation. The court refused to quash the decision of the tribunal and, strangely, agreed that there were circumstances which justified awarding of compensation to one parent and not the other. This decision was made by a court which was quite critical of the approach taken by Lord Diplock in GCHQ. Henchy J. said he would be ‘slow to test reasonableness by seeing if it accords with logic’ and would be ‘equally slow’ to accept the moral standard criteria believing it a vague and inconsistent principle to base reasonableness on.
Case Study 1: Banc One Corporation Asset and Liability Management Gizem Akkan So basically, the main problem Banc One Corporation has falling share prices as it is written from a 48 ¾ to 36 ¾ in April 1993. The basic reason behind this decline is that its exposure to derivative securities. This decline in share prices raises concerns among the Banc One’s Investors as well as its analysts since they are uncomfortable with huge amount of derivative usage particularly swaps. They think they are not able to measure risks they exposed so this create uncertainity about the firm’s financial stability.
Bankruptcy is a time of turmoil and uncertainty in any company, in addition to employees leaving and a loss of confidence from vendors and customers, management is restricted in their ability to make decisions and navigate the company. Because of the heightened uncertainty, many investors abandon the company, greatly reducing the value of the company, making the process even more difficult. However, savvy investors can generate large returns by entering the company at the right time as it begins to rebuild, so long as they can determine which companies will fail, and which will recover. H Partners is currently engaged in this process with Six Flags, having already gathered substantial returns on Six Flags’ senior debt, H Partners is determining
Mr. Rao became the ruler after the Rajiv Gandhi was assassinated, Mr. Rao soon after had to tell his counsel that India was broke and that the banks were no longer loaning money. As a result reform were put to swift practice first starting with devaluing India’s currency, lifting long-standing restrictions on import and to make many structural reforms to help encourage exports. India introduced a new reform each week and opened banking, airlines and oil to private investors. During 1991 the Indian government abolished the office that controlled stock market pricing and let investment banks offer a fair price. As much as Inia was growing they could not keep up with China so India began sending government officials to China to find inspiration.