SVKM’s NarseeMonjee Institute of Management Studies

Name of School - Kirit P. Mehta School of Law

Program: B.A., LL.B. (Hons.) 8101& B.B.A., LL.B. (Hons.) 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 (TEE)
per per per week) (Marks - 50) (Marks- 50
week) week) 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 ofdirectors
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 forInsolvency/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)
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
 SVKM’s NarseeMonjee Institute of Management Studies
Name of School - Kirit P. Mehta School of Law
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
 SVKM’s NarseeMonjee Institute of Management Studies
Name of School - Kirit P. Mehta School of Law
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://algolegal.in/reality-sector/
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
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
13. Cross Border Insolvency 3 Hrs.
- Section 234-235 of IBC
- Jet Airways Case Study
Reference Reading:
1. https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Res
earch_Papers/Introduction-to-Cross-Border-Insolvency.pdf
2. https://ibbi.gov.in/uploads/resources/c3593c9f41984c6f31f278974
de3cf37.pdf
14. Latest trends: 3 Hrs.
- Prepack Insolvency
- Group Insolvency
- Reverse CIRP
Reference Reading:
https://www.ibbi.gov.in/uploads/whatsnew/34f5c5b6fb00a97dc4ab752a
798d9ce3.pdf
15. Insolvency Regimes in other countries 3 Hrs.
 SVKM’s NarseeMonjee Institute of Management Studies
Name of School - Kirit P. Mehta School of Law

- 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:

Details of Internal Continuous Assessment (ICA): 50 Marks

Description of ICA Marks
Research Paper 20 Marks
Seminar 10 Marks
Viva 10 Marks
Class Participation 10 Marks
Total Marks : 50 Marks

Sohini Shrivastav
Signature Signature
(Prepared by SohiniShrivastav) (Approved by Dean)
SVKM’s NarseeMonjee Institute of Management Studies
Name of School - Kirit P. Mehta School of Law