SVKM’s Narsee Monjee Institute of Management Studies

Program: B.A., LL.B. (Hons.) 8101& B.B.A.,

Name LL.B.- Kirit
of School (Hons.)
P. Mehta School of Law Semester:IX
8102
Module: Laws of Insolvency and Bankruptcy Module Code:
Teaching Scheme Evaluation Scheme
Lecture Practical Tutorial Internal Continuous Term End
(Hours (Hours (Hours Credit Assessment (ICA) Examinations
per per per week) (Marks - 50) (TEE)
week) week) (Marks- 50
in Question
Paper)
3 0 0 3 Marks Scaled to 50 Marks Scaled
to 50

Pre-requisite: Knowledge of Companies Act 2013.

Objectives:
▪ To gain knowledge of the theory, policy and key principles of corporate insolvency law.
▪ To focus on the key corporate insolvency procedures of liquidation, administration, receivership as
well as informal business rescue.
▪ To study comparative developments in major jurisdictions
▪ To examine the role of govt. the regulators, the insolvency profession and other stakeholders in
corporate insolvency law, including the duties and conduct of directors in relation to businesses in
financial difficulty.
▪ To examine cross-border insolvency issues.

Outcomes:
1. To understand why there was a need for this code (PLO1).
2. To comprehend the procedure laid under the code for Insolvency/Bankruptcy (PLO1).
3. To comprehend the filing and compliance proceduresmentioned under the Code. (PLO2).
4. To analyse the latest trends and cases decided under the Code. (PLO3).
New outcomes:
1. To understand the theoretical and jurisprudential principles of corporate insolvency laws – PLO1a.
2. To determine and solve practical issues and problems associated with corporate insolvency law –
PLO3a.
3. To discuss comprehensive understanding of filing and compliance procedures mentioned under the
Code. PLO2a.
Detailed Syllabus: ( per session plan )
Unit Description Duration
1. Introduction to Insolvency 3 Hrs
● The Concept of Insolvency
● Cash Flow Test and Balance Sheet Test
● The Creditor’s Bargain and the Collectivity of the Liquidation regime
● The principles and foundation of Corporate Insolvency Laws
● The principles and foundation of Individual Insolvency Laws

2. Introduction to Bankruptcy Policy 2 Hrs

● Need for Insolvency and Bankruptcy Code:
● Sick companies and Recovery of Debt
● India’s rising NPA problem
3. Corporate Insolvency Resolution Process 3 Hrs
● Definitions
● Initiating an application for Resolution
● Application by Financial Creditor
● Application by Operational Creditor
● Application by Corporate Debtor
● Information Memorandum and Resolution plan Cases:
- Mobilox v. Kirusa
- Innoventive Industries v. ICICI Bank
- Swiss Ribbons Pvt. Ltd. V. Union of India Basic
Reading:
Section 3-10 of IBC, 2016
 4. CIRP Process Continued 3 Hrs
- Moratorium
- Personal Guarantors under IBC Cases:
V Ramakrishnan v. SBI & Others
Basic Reading:
Section 11- 17 of IBC, 2016
Reference Reading:
https://www.legal500.com/developments/thought-leadership/the-next- wave-
personal-guarantors-under-the-insolvency-and-bankruptcy-code- 2016/

5. IRP and CoC: 3 Hrs

● Role of Interim Resolution Professional
● Committee of Creditors: Powers, Duties and Processes Basic
Reading:
Section 18-24 of IBC, 2016
6. Section 29 A Conundrum 3 Hrs
- Ineligible Applicants
Important Judgments
- Ruchi Soya Case
- Vedanta Electrosteel Case
- Bhushan Steel Case Basic
Reading:
Section 29A of IBC, 2016

7. Reportable Transactions 3 Hrs

- Undervalued Transactions
- Fraudulent Transactions
- Transactions defrauding Creditors
- Extortionate Credit Transactions
Case:
JIL v. JAL Case
Basic Reading:
Section 43- 51 of IBC,2016
8. Fast Track Resolution Process 2 Hrs
-Eligibility
- Process
Basic Reading- Section 55 of IBC,2016
9. The Homebuyer’s Situation 3 Hrs
- Jaypee Infra Case
- Nikhil Mehta Case
- 2020 Ordinance and its aftereffect
- Pioneer Urban Infrastructure Case Reference
Reading: https://www.pslchambers.com/wp-
content/uploads/2020/04/Homebuyers-The-
Amendments-to-IBC.pdf
10. Liquidation Process 3 Hrs
● Moving from Resolution to Liquidation
● Role of IPs as a liquidator and liquidation process
● Liquidation Estate: Determination of Claims
● Waterfall Mechanism
● The concept of “Haircut”
● Voluntary Liquidation Basic
Reading:
Section 30-53 of IBC
11. Insolvency Resolution and Bankruptcy for Individuals and Partnership 3 Hrs
Firm
● Fresh Start Process
● The inherent lapses of fresh start process for individuals
● Individual Insolvency in US and UK
Basic Reading: https://www.ibbi.gov.in/uploads/law/IBC%20Part%20III.pdf
12. Authorities and Enforcement Mechanism in IBC 3 Hrs
 ● Role of Adjudicating Authorities
● Role of the Insolvency and Bankruptcy Board of India (IBBI)
● Role of Insolvency Professional Agencies and Insolvency
Professionals
● Role of Information Utility
● Role of Information Utilities Appellate Authorities
Basic Reading:
https://ibbi.gov.in/uploads/whatsnew/e42fddce80e99d28b683a7e21c81110e.pdf
13. Cross Border Insolvency 3 Hrs
- Section 234-235 of IBC
- Jet Airways Case Study
Reference Reading:
- https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Research_Papers/Introduction-
to-Cross-Border-Insolvency.pdf

14. Latest trends: 3 Hrs

- Prepack Insolvency
- Group Insolvency
- Reverse CIRP
Reference Reading:
https://www.ibbi.gov.in/uploads/publication/599cf8fb50be73f518fca467311304db.pdf

15. - Insolvency Regimes in other countries 3 Hrs

Insolvency Regime in UK
https://www.pwc.co.uk/assets/pdf/insolvency-in-brief.pdf
16. Doubt Clearing and Feedback on Projects 2 Hrs
Total 45 Hrs
Text Books:
1. Insolvency and Bankruptcy Code, 2016: Concepts and Procedure by Jyoti Singh,
Bloomsbury India.
2. Handbook on Insolvency and Bankruptcy Code, Institute of Directors Publication, 2019.
3. The Insolvency and Bankruptcy Code, 2016, updated till 2021.
Reference Readings:
Taxmann’s Law relating to Insolvency and Bankruptcy Code, 2016.
Any other information:
1. Latest Updated Statutes, Acts, Rules and Regulations and Case Law will be taught after discussion In the
Multi-Campus Program Coordination (MPC) Meeting.
Details of Internal Continuous Assessment (ICA): 50 Marks

Description of ICA Marks

Test 1 20 Marks
Quiz 10 Marks
Group Discussion 10 Marks
Class Participation 10 Marks
Total Marks: 50 Marks

Signature Signature
(Prepared by Sahhana Subba Reddy) (Approved by Dr. Durgambini Patel, Dean)