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 The Council
President
CONTENTS
l Mamta Binani
ISSN 0972-1983

CHARTERED SECRETARY
®
Vice President
l Shyam Agrawal (Dr.)
[ Registered under Trade Marks Act, 1999 ]
Members
(in alphabetical order)

l Ahalada Rao V.
Vol. : XLVI n No. 09 n Pg 1-164 n September-2016
l Amardeep Singh Bhatia
l Ashish C. Doshi 1. From the President 16
l Ashish Garg
l

l
Atul H Mehta
Gopalakrishna Hegde
2. Articles 21
Gopal Krishan Agarwal
3. Reasearch Corner 93
l

l Mahavir Lunawat
l Makarand M. Lele
l

l
Rajesh Sharma
Rajiv Bajaj
4. Legal World 111
Ramasubramaniam C.
5. From the Government 119
l

l Ranjeet Kumar Pandey

l S. K. Agrawala
l

l
Satwinder Singh
Vijay Kumar Jhalani
6. News From the Institute 127
l Vineet K. Chaudhary
l Yamal Ashwinkumar Vyas 7. Miscellaneous 149
Secretary
l Dinesh C. Arora QR Code/Weblink of Chartered Secretary Journal
[Link]

09 Editorial Advisory Board

l
Chairman
S K Agrawala
Annual Subscription
Inland : Rs. 1000 (Rs. 500 for Students of the ICSI)
Foreign : $100; £60 (surface mail) Single Copy : Rs. 100

Members ‘Chartered Secretary’ is normally published in the first week of every month. n Non-
(in alphabetical order)

l Ashu Gupta (Ms.) receipt of any issue should be notified within that month. n Articles on subjects of
l Deepak Kukreja interest to company secretaries are welcome. n Views expressed by contributors are
l D K Jain (Dr.) their own and the Institute does not accept any responsibility. n The Institute is not in
l D P Gupta any way responsible for the result of any action taken on the basis of the advertisements
l Gourav Vallabh (Prof.) published in the journal. n All rights reserved. n No part of the journal may be
l G R Bhatia reproduced or copied in any form by any means without the written permission of the
l H M Choraria Institute. n The write ups of this issue are also available on the website of the Institute.
l N K Jain
l Puttaparthi Jagannatham Edited, Printed & Published by
l Pradeep K Mittal Dr. [Link] for The Institute of Company Secretaries of India,
l Prithvi Haldea ‘ICSI House’, 22, Institutional Area, Lodi Road, New Delhi- 110 003.
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I
CHARTERED SECRETARY SEPTEMBER 2016 3
ICSI IMAGES

01 02

03 04

05 06

07 08

01 Meeting of ICSI delegation with Hon’ble Minister of Finance and Corporate 02 Arun Jaitley (Hon’ble Union Minister for Finance and Corporate Affairs)
Affairs – Clockwise from Left: Arun Jaitley (Hon’ble Union Minister for Finance engrossed in ICSI publication.
and Corporate Affairs), CS Ashish C Doshi, CS Mamta Binani, CS Vineet K
Chaudhary and CS Dinesh C Arora.
National Symposium on Goods and Services Tax held at Bikaner - Chief CS Mamta Binani seen interacting with Krishna Raj (Hon’ble Minister of State,
03 04
Guest Arjun Ram Meghwal (Hon’ble Union Minister of State for Finance and Ministry of Women and Child Development) while CS Sonia Baijal looks on.
Corporate Affairs) being welcomed among others by CS (Dr.) Shyam Agrawal,
CS Surender Harsh and CS Dinesh C. Arora.
Meeting of ICSI delegation with Chairman NCLAT – CS Mamta Binani and Meeting of ICSI delegation with President, NCLT – CS Mamta Binani presenting
05 06
CS Vineet K Chaudhary seen presenting a bouquet to Hon’ble Justice S.J. a bouquet to M M Kumar(President, NCLT). Also seen in the picture CS
Mukhopadhaya (Former Justice Supreme Court of India and NCLAT Chairman). Vineet K Chaudhary.

Meeting of ICSI delegation with Director (SFIO) – CS Mamta Binani presenting Meeting of ICSI delegation with Revenue Secretary, Ministry of Finance – CS
07 08
a bouquet to Nilimesh Baruah {Director (SFIO)}. Also seen in the picture CS Mamta Binanai seen ineracting with Dr. Hashmukh Adhia (Revenue Secretary,
Vineet K Chaudhary. Ministry of Finance). Also present on the occasion CS Dinesh C Arora and
Preeti Kaushik Banerjee.

4 I
SEPTEMBER 2016 CHARTERED SECRETARY
 ICSI IMAGES
09 10

11 12

13 14 15

16 17

09 India Banking Reforms Conclave 2016 – CS Mamta Binani seen receiving 10 Meeting of Empowered Committee of State Finance Ministers on Goods
a memento from Kailashnath Adhikari (MD, Governance Now, SAB TV and Services Tax with apex Chambers of Commerce and Industry, Trade
Group). Others standing from Left: CA M Devaraja Reddy ( President, Organisations and Professional Bodies - A view of the ICSI delegation –
ICAI), Ashokkumar Chauhan (MD & CEO, BSE Ltd.) and S S Mundra Sitting from Left: CS P K Mittal, CS Mamta Binani, CS (Dr.) Sanjiv Agarwal,
(Deputy Governer, RBI). CS Sanjeev Malhotra and CS Dinesh C Arora.
Meeting of Empowered Committee of State Finance Ministers on Goods Dr. Amit Mitra seen with CS Mamta Binani.
11 12
and Services Tax with apex Chambers of Commerce and Industry, Trade
Organisations and Professional Bodies - Group photo of ICSI delegation
with Dr. Amit Mitra (Chairman of the Empowered Committee).
The Institute of Certified Public Secretaries of Kenya – Annual International Conference Hindustan Times Shine HR Conclave – CS Mamta Binani addressing at the
13 14-15
on Good Governance: Transforming Institutions for Higher Performance – CS conclave. (Right) - A view of the participants at the conclave.
Makarand Lele and CS Mamta Binani seen with foreign delegates.
Group photo of ICSI delegation at the conclave. Lucknow Chapter – Presentation on Income disclosure Scheme, 2016 –
16 17
Standing from Left: CS Anuj K Tiwari, CS Geetika Keswani, Dr. Neil Jain (IRS,
Income Tax Commissioner, Lucknow) CS Mamta Binani and CS Amit Gupta.

I
CHARTERED SECRETARY SEPTEMBER 2016 5
 17th National Conference of Practising Company Secretaries
ICSI IMAGES

18 19 20 21 22

23 24

25 26

18 17th National Conference of Practising Company Secretaries – Press 19-22 Address by CS Vineet K Chaudhary, CS Ashish Garg, CS Mamta Binani
Conference – Sitting on the dais from Left: CS G S Sarin, CS Manish and Chief Guest A R Kohli (Hon’ble Former Governor of Mizoram) at
Aggarwal, CS Ashish Garg, CS Mamta Binani, CS Vineet K Chaudhary and the Conference.
CS Dinesh C Arora.

Release of Conference Souvenir by Chief Guest A R Kohli. CS Mamta Binani seen presenting a memento to Chief Guest A R Kohli.
23 24
Others standing from Left: CS Dinesh C Arora, CS Vineet K Chaudhary,
CS Ashish Garg, CS Manish Gupta and CS G S Sarin.

Release of ICSI publication Guidance Note on Secretarial Audit (Release 1.3) Release of ICSI publication NCLT and NCLAT Manual - Standing from
25 26
by CS Upender Gupta (Commissioner GST). Left: CS Gopalakrishna Hegde, CS S K Agrawala, CS Sanjay Grover, CS
U K Chaudhary, CS Anil Bhardwaj {Advisor (Eco.), CCI}, CS Saurabh
Kalia and CS Amit Gupta.

6 I
SEPTEMBER 2016 CHARTERED SECRETARY
 17th National Conference of Practising Company Secretaries

ICSI IMAGES
27 28

29 30 31

32 33

27 Release of ICSI publication Guidance Note on AOC – 4 – On the dais 28 Release of Image makeover Workshop Brochure – Standing from Left: CS
from Left: Rajesh Sharma, CS Nesar Ahmad, Anupam Malik ( Addl. Ashish Garg, CS Dinesh C Arora, CS Vineet K Chaudhary, Kiran Oberoi
Labour Commissioner, Haryana), CS Pavan Kumar Vijay and CS Ranjeet Vasudev (Chairperson , QRB, ICSI), CS Mamta Binani, Hon’ble Justice M M
Kumar Pandey. Kumar (President, NCLT), CS Manish Gupta and CS G S Sarin.

Address by Kiran Oberoi Vasudev (Chairperson , QRB, ICSI) and Hon’ble CS Mamta Binani presenting a memento to Hon’ble Justice M M Kumar
29-30 31
Justice M M Kumar (President, NCLT). (President, NCLT) while Kiran Oberoi Vasudev looks on.

CS Vineet K Chaudhary presenting a memento to Kiran Oberoi Vasudev Group photo – Hon’ble Justice M M Kumar and Kiran Oberoi Vasudev seen
32 33
(Chairperson , QRB, ICSI) while CS Mamta Binani Looks on. with President, Past Presidents, Council Members, past Council Members,
NIRC Members, Managing Committee Members of Chandigarh Chapter and
team ICSI from Headquarters.

I
CHARTERED SECRETARY SEPTEMBER 2016 7
 Celebration of GST Awareness Month
ICSI IMAGES

34 35 36 37

38 39

40 41

42 43
Address by CS (Dr.) Shyam Agrawal, Chief Guest Arjun Ram Meghwal (Hon’ble Release of poster on GST: Boosting India’s Growth – On the dais from Left: CS
34-36 37
Union Minister of State for Finance and Corporate Affairs) and Dr. Gaurabh Laxmi Chand Purohit, CS Surender Kumar Harsh, CS Dinesh C Arora, Chief
Vallabh(Prof. & Chairperson, Accounting and Finance, XLRI School of Business Guest Arjun Ram Meghwal, CS (Dr.) Shyam Agrawal, MLA Gopal Krishan Joshi,
& Human Resource) at the National Symposium on GST held at Bikaner. CS Narayan Das Daga, CS Nitesh Ranga and CS Reena Bala.
Bhubaneswar Chapter - Full day workshop on GST - P.K. Biswal (Addl. Jaipur Chapter – Half-day Seminar on GST held at Sikar – CS (Dr.) Shyam
38 39
Secretary, Planning and Convergence, Govt. of Odisha) addressing. Other Agrawal addressing. Others sitting on the dais form Left: CS Rahul Sharma, CA
sitting on the dais from Left: CS Priyadarshi Nayak, Anil Sood (Advocate), Sushil Ginodia, Ratan Jaldhari (MLA, Sikar), Pawan Modi (Eminent Industrialist)
CS Ashok Kumar Mishra and CS Surendra Nath Mallick. and Sunil Mor (President Sikar Tax Bar Association).
Jodhpur Chapter – Programme on GST held at Jaisalmer – CS (Dr.) Shyam
40-41
Agrawal addressing. (Right) - A view of the participants at the programme.
Mysore Chapter - GST programme held jointly with CII, Mysore – On the dais from Pune Chapter - Full day programme on GST – A view of the guest speaker
42 43
Left: Ravi Prasad ( Jt. Commissioner, Commercial Taxes, Govt. of Karnataka), K and the dais.
V Satya Prakash (Addl. Commissioner, Commercial Taxes, Govt. of Karnataka),
K Balamurugan (Addl. Commisisoner, Ministry of Finance, Deptt. of Revenue,
Govt. of India), Dr. N Muthukumar (Chairman, CII, Mysore), Siddharth Bhatt
(Laxmikumaran & Sridharan) and CS M C Bhansali.

8 I
SEPTEMBER 2016 CHARTERED SECRETARY
 Celebration of GST Awareness Month

ICSI IMAGES
44 45

46 47

48 49
Other Events

50 51
ICSI – CCGRT - Workshop on GST – Sitting from Left: Dr. Rajesh Agrawal, A view of the invitees and delegates at the ICSI – CCGRT workshop.
44 45
Chief Guest R Sekar and CS (Dr.) Sanjiv Agrawal.

Modinagar Chapter - Programme held at Modinagar. Surat Chapter - Speaker and the participants at the GST programme held
46 47
at Surat.

Ludhiana Chapter – Programme on An Overview and Salient Features of Model Agra Chapter - Programme held at Agra.
48 49
GST Law – from Left clockwise: CS Manpreet Kaur, CS Madan Lal Arora, CS
P S Bathla and CS Jatin Singal discussing model GST Law.

Ranchi Chapter – Interactive meet with members and students – Group photo Ranchi Chapter – Interactive meet with members and students – Group photo
50 51
of members with CS Mamta Binani and CS Sanjeev K Dikshit. of students with CS Mamta Binani and CS Sanjeev K Dikshit.

I
CHARTERED SECRETARY SEPTEMBER 2016 9
ICSI IMAGES

52 53

54 55 56

57 58

59 60
National Seminar on NCLT and NCLAT at Indore – Valedictory Session - CS A view of the invitees, dignitaries and delegates at the National Seminar.
52 53
Ashish Garg addressing.
Bhayander Chapter - Full Day Seminar on National Company Law Tribunal – Thane Chapter – Seminar on NCLT and NCLAT Rules – CS Prakash Pandya
54 55-56
Law & Practice - From Left: CS Priyanka Bajaj, CS Sunil Agarwal, CS Manoj addressing. (Right) - A view of the audience at the seminar.
Mimani, CS Prakash Pandya, CS Praveen Soni, and CS Manish Baldeva.

SIRC Foundation Day Celebration and Seminar – On the dais from Left: CS R A view of the invitees, dignitaries and delegates.
57 58
Rajesh, CS Sivakumar P, CS Rajendran S and CS Mohan Kumar A.

EIRC - Seminar on Corporate Governance, NCLT and GST - Standing from Left: CS Rajkot Chapter – Foundation Day Celebration - Dr. Darshita Shah (Dy
59 60
Rajesh Poddar (Co-Chairman, Governance Task Force, CII Eastern Region & Deputy Mayor, Rajkot) being welcomed by CS Purvi Dave.
Company Secretary, ITC Ltd.), CS Sandip Kumar Kejriwal, Moloy Banerjee (Chairman
CII-ER Governance Task Force and MD, Linda India Ltd. ), Chief Guest Jyoti Jindger
(Adviser CII), Guest of Honour Bibekananda Mohanty (RoC, MCA) and A Roychowdhury
(Deputy Director, CII, Eastern Region).

10 I
SEPTEMBER 2016 CHARTERED SECRETARY
 ICSI IMAGES
61 62

63 64

65 66

67 68 69 70
Hyderabad Chapter - Panel Discussion on Gender Diversity in Corporate Board Room Hyderabad Chapter – ICSI President’s visit to Center of Excellence, Hyderabad
61 62
led by President at Hyderabad - Group photo: CS Mamta Binani, CS Ahalada Rao V, – Sitting from Left: CS Sudhir Babu C, CS Ahalada Rao V and CS Mamta Binani.
Dr. PVS Jagan Mohan Rao, CS Mahadev Tirunagari, CS Kavitha Rani Sakhamuri, CS
Shalini Deen Dayal, CS Vasudeva Rao Devaki along with the participants.
Hyderabad Chapter - CS Mamta Binani inaugurated ICSI-Hyderabad Chapter Foundation Hyderabad Chapter - Group photo – Standing among others CS Mamta Binani, CS Ahalada
63 64
Day month and first to sign the signature campaign banner of ICSI GST-CSR 5K Walk. Rao V, CS Sudhir Babu C, CS Ramakrishna Gupta R, CS Mahadev Tirunagari.
Flag off - ICSI GST-CSR 5K WALK – Present among others CS Ahalada Gathering of students/members participated in ICSI GST-CSR 5K WALK.
65 66
Rao V, CS Ramakrishna Gupta R, CS Mahadev Tirunagari, Dr K Laxman
(President, BJP, Telangana State & MLA), Chintala Ramachandra Reddy
EIRC - Flag hoisting on the occasion of Independence day celebration.
(MLA), Ramachandra Rao (MLC), M. Srinivas (Commissioner ,Customs, 69
Central Excise & Service Tax), Daivagna Sharma (Numerologist) and Father
of P V Sindhu, Silver medal achiever in RIO Olympics.
Kanpur Chapter – Seminar on NCLT/NCLAT – Standing from Left: CS Kaushal Saxena, CS Flag hoisting on the occasion of Independence day celebration at ICSI Hq.
67-68 70
Sameer Shukla, CS Vineet K Chaudhary, CS Amit Gupta, CS Mamta Binani, CS P K Mittal,
CS Vaibhav Shukla, CS Shruti Agarwal and CS Ankur Srivastava. (Centre) - Rishabh Handa
(Student, AIR First Rank in Executive Level Exam.) being felicitated by CS Mamta Binani.

CHARTERED SECRETARY SEPTEMBER 2016 I 11

AT A GLANCE
legislation separately dealing with the cases involving
ARTICLES P-21 corporates (Companies Act) and individuals (Provincial
Insolvency Act). Insolvency has cascading effect on the
Insolvency and Bankruptcy Code, 2016 persons having business transactions, employees, creditors
P-23 and so on. The new law as such has separate parts wherein
Rakesh Wadhwa the corporates have been dealt with under Part II with 74
Sections and in Part III with 66 Sections provide for individual
and partnership bankruptcy. The Debts Recovery Tribunal
I nsolvency and Bankruptcy Code, 2016 is the master law
through consolidation/modification of various laws such as
Sick Industrial Companies (Special Provisions) Act, 1985,
(DRT) will deal with the individual’s bankruptcy and National
Company Law Tribunal (NCLT) will deal with corporate
SARFAESI, Presidency Towns Insolvency Act, Provincial insolvency matters. Insolvency will no longer be a luxury for the
Insolvency Act, Companies Act and various adjudicating defaulters who drag on the litigations and enjoy other’s money
authorities such as BIFR, DRT, High Courts having jurisdiction and time bound decisions at every stage will come.
on the subject matters related to insolvency, bankruptcy,
liquidation/winding up of corporate entities, individuals, Challenges in implementation of Insolvency
partnerships, etc. Enactment and implementation of IBC, 2016 and Bankruptcy Code P-46
will obviously expedite fast resolution of recovery proceedings,
winding up proceedings, insolvency and Bankruptcy
proceedings for cases filed by Creditors as well as debtors in M R Umarji
the time bound manners through professional’s involvement in
the form of Insolvency Professionals. A common platform in
the form of IBC and NCLT is provided for creditors and debtors
I nsolvency and Bankruptcy Code, 2016 which is expected to
be brought into force shortly, will be throwing up many
challenges in implementation. One major challenge for the
resolutions. There is no doubt that the success of the code
trade, industry and commerce, is to adopt a policy of making all
depends on the effective implementation by the authorities.
payments before due dates, and ensure that all financial
Hope this new code will achieve the objective for which it is
commitments are honoured on time or face the consequence of
enacted and will promote the ease of doing business in India
an insolvency resolution application. There are also challenges
at par with the international standards.
for Ministry of Corporate Affairs to set up new entities such as,
Insolvency Practitioners, I.P. Agencies, Insolvency and
Insolvency and Bankruptcy Code –
A look from a common man’s perspective
P-29 Bankruptcy Board of India, and Information Utilities. This article
discusses various challenges in implementation of the IBC and
what steps the affected parties are expected to take.
M Balasubramanian
Corporate Insolvency Resolution Process –
T he Insolvency and Bankruptcy Code, 2016 offers a
uniform, comprehensive insolvency legislation
encompassing all companies, partnerships and individuals.
Brief analysis and challenges
P-50
NCLT and Debt Recovery Tribunal play a vital role as an
Adjudicating Authority. The code facilitates time-bound process Vineet K Chaudhary and Alka Kapoor
for insolvency resolution and liquidation.
T he Insolvency Resolution Process (IRP) under The
Insolvency and Bankruptcy Code, 2016 provides
The Insolvency and Bankruptcy Code, 2016 mechanism by allowing creditors to assess the viability of a
P-32 corporate debtor and to agree upon a plan for their revival or a
G Sriram speedy liquidation. The existing legal framework under which
the primary onus to initiate a reorganisation process lies with

T he Insolvency and Bankruptcy Code, 2016 provides for

the constitution of a new insolvency regulator i.e., the
Insolvency and Bankruptcy Board of India (Board). Its role
the debtor and lenders could pursue distinct actions for
recovery, security enforcement and debt restructuring. The
time bound insolvency process within 180 days through
includes: (i) overseeing the functioning of insolvency appointment of resolution professional with National Company
intermediaries i.e., insolvency professionals, insolvency Law Tribunal as adjudicating authority for the insolvency
professional agencies and information utilities; and (ii) process will give a big boost to ease of doing business in India
regulating the insolvency process. Insolvency and Bankruptcy by making revival and liquidation process easier.
Board of India (IBBI) will be the regulatory body responsible for
framing the rules, code of conduct and registration of the
Corporate Insolvency Resolution Process
above agencies.
under the Insolvency and Bankruptcy Code, P-56
2016 - An analysis
Insolvency and Bankruptcy Code, 2016
P-37
Nilesh Sharma
Dr. Mahesh Thakar & Jyotmala Thakar

T he Government has during recent years, taken the

initiative of law reforms by introducing trendsetter laws
I nsolvency and Bankruptcy Code, 2016 has been enacted to
replace the existing provisions as to Insolvency / Bankruptcy
of Corporates, Individuals and Partnership Firms. The major
like GST Act, Commercial Courts Act for disputes above Rs. 1 provisions of the Code include establishment of an Insolvency
crore and now the much needed Insolvency and Bankruptcy regulator i.e. Insolvency and Bankruptcy Board of India (IBBI),
Code, 2016. The law combines within its ambit the existing creation of a new class of professionals (i.e. Insolvency

12 I
SEPTEMBER 2016 CHARTERED SECRETARY
 AT A GLANCE
Professionals) and Insolvency Professional Agencies (to strict timelines within which the case has to be disposed of.
develop professional standards, code of ethics and to exercise
disciplinary role over IPs) and setting up of Information Utilities
Information Utilities – Provider of Level Playing
(who will collect, collate and disseminate information from
field in Insolvency and Bankruptcy Process
P-71
companies and creditors). The cases in respect of corporates
shall be adjudicated by NCLT and in respect of individuals and
unlimited partnerships by DRTs and that the Appellate
Jurisdiction shall be with NCLAT and DRATs respectively. With
S Eshwar
development of market for distressed businesses/assets and
provision for availability of Finance for acquisition of the said
businesses/assets, the IBC is likely to improve the rights of
U nder the present scheme of things, financial information
about non-corporate borrowers is available only with the
income-tax department and is not publicly accessible even
creditors especially the unsecured creditors and as a result will under the Right to Information Act, 2005. The ‘information
improve the credit availability in the market and reduce the cost utilities’ contemplated under the Insolvency and Bankruptcy
of credit. The same will improve the competitiveness of Indian Code will help to overcome this deficiency. This article
businesses and resultantly economic growth in the country. examines how information utilities will provide a level playing
field in insolvency proceedings.
Corporate Insolvency Resolution Process under P-62
the Bankruptcy Code and its impact on the Position of Secured Creditor in the Winding P-74
Companies Act up and in the Liquidation of Corporate Debtor

P H Arvind Pandian G M Ramamurthy

T his article considers in detail, the effect of the Bankruptcy
and Insolvency Code on creditor’s winding up in detail.
Further, the article examines the procedure available to
T he Insolvency and Bankruptcy Code, 2016 will now
govern the whole gamut of insolvency except in the
circumstances mentioned in Section 271 of the Companies
different kinds of creditors recognized under the Code and
Act, 2013. The position of secured creditor under liquidation is
critiques the approach of the Code in so far as it seeks to
not the same as in the Companies Act, 2013 in the case of
replace discretion with mandatory terms of law. In line with this,
winding up. The Code has opened up new opportunities for
the article, at appropriate instances, highlights the departures
insolvency professionals. The process of distribution of
made by the Code from the previous regime of laws relating to
realisation of the assets has changed considerably under the
bankruptcy and insolvency. It argues that the two-tier
Code. The Code aims at equitable distribution of the assets
mechanism, set up around a creditor-based winding up system
realised. Secured creditors are also permitted to make an
is a double edged knife, which may act as both an oppressor
application to the Adjudicating Authority (National Company
and a redresser for different situations. In conclusion, the
Law Tribunal) if he faces resistance from the corporate debtor
article argues that the strength of this measure taken by the
or any person connected with the secured asset in taking
Parliament can only be determined by the nature of work done
possession of, selling or otherwise disposing off the security.
by the insolvency professionals, who shall stand to be the
A correct understanding of the provisions of the Companies
backbones of this mechanism.
Act, 2013 and the Code will be of immense advantage to the
Insolvency Professionals when the Code becomes operational.
Insolvency and Bankruptcy Code, 2016 - Fast P-67
The person or entity to be considered as a secured creditor
Track Corporate Insolvency Resolution Process has also got enlarged due to SARFAESI Act. All these entities
are now to acclimatise themselves with their position in
Hemant K Sharma winding up of a corporate debtor or in the liquidation of such
debtor.

T he essential idea behind the new law is that when a firm

defaults on its debt, control shifts from the shareholders/
promoters to a Committee of Creditors, who has 180 days in
Winding up of Companies under the Insolvency P-78
and Bankruptcy Code, 2016
which to evaluate proposals from various players about
resuscitating the company or taking it into liquidation. When
decisions are taken in a time-bound manner, there is a greater M L Sharma
chance that the firm can be saved as a going concern, and the
productive resources of the economy (the labour and the
capital) can be put to the best use. The fast track corporate
T he Insolvency and Bankruptcy Code, 2016 has made
drastic changes with regard to winding up of companies.
The Companies Act all along provided for winding up of
insolvency resolution process has been introduced which shall
companies on the ground of inability to pay debts. This ground
be completed within a period of ninety days (90) from the
for winding up has since been deleted from the Companies
insolvency commencement date and there can be only one
Act, 2013. It has been tagged with first compulsory resorting
extension of forty-five days (45). The adjudicatory authority
to corporate insolvency resolution process before going for
will have the power to extend the process only if an application
liquidation on this ground under the Code. Such a provision
is filed by the resolution professional on the instructions of the
shall also be applicable to Limited Liability Partnerships and
creditors by a resolution passed at a meeting with seventy-five
other entities incorporated with limited liability under any other
per cent (75%) votes of the committee of creditors. With the
law for the time being in force. The Code has also shifted the
implementation of the Insolvency and Bankruptcy Code, the
provisions regarding voluntary winding up of companies from
problem of delay has been reduced since the quick disposal
the Companies Act to the Code with some modifications,
of cases have maximized the recovery amount because of the
particularly doing away with members’ voluntary winding up

I
CHARTERED SECRETARY SEPTEMBER 2016 13
AT A GLANCE
and approval of creditors compulsory for voluntary winding up
of corporate debtors. These provisions have been discussed in
this article to give a layman’s understanding of them.
LEGAL WORLD P-111
• LMJ: [Link] CLB does not have overriding jurisdiction
Opportunities for Company Secretaries under P-88 over the Special Court, to try the cases relating to the transfer
the Insolvency and Bankruptcy Code, 2016 of tainted shares.[SC] • LW: [Link] Supreme Court
appoints arbitrator. • LW: [Link] Supreme Court directs
Mahesh A. Athavale and LIC to pay back wages and consequential benefits to workmen
Anagha Anasingaraju terminated 20 years ago. • LW: [Link] Since the
workmen accepted retiral benefits there is no relationship left

T he Insolvency and Bankruptcy Code 2016 is set to

become the law of the land in near future. It is touted to
bring about a sea change in the way India will deal with
between the Corporation and the respondents and in such a
situation further claim against the Corporation that it should
treat the respondents to be Government servants and adjust
insolvency, bankruptcy and winding up of corporate entities.
their retiral benefits accordingly was totally untenable and
The Code goes a step ahead and also brings within its ambit
wrongly allowed by the High Court.[SC] • LW: [Link] It is
partnership firms and individuals. Even poor and marginalized
sections of the society like farmers will also get covered under well-settled law that there is no difference between a contract
this Code. Insolvency Professionals have a huge and pivotal of insurance and any other contract, and that it should be
role to play in the scheme of things under the Code. Company construed strictly without adding or deleting anything from the
Secretaries should be able to play this role effectively. This terms thereof. On applying the said principle, we have no
Code opens up new avenues of practice for Company doubt that a forcible entry is required for a claim to be allowed
Secretaries and other professionals. This Article aims to under the policy for burglary/house breaking. [SC] • LW:
understand the scope and scheme of the Code and [Link] Supreme Court directs post-decisional public
responsibilities and opportunities for Company Secretaries. hearing with respect to environment clearance certificate. [SC]

RESEARCH CORNER P-93 FROM THE GOVERNMENT P-119

A Study of the separation of the position P-95 • Special Courts for speedy trial of offences under the
of Chairman and CEO and its impact on Companies Act, 2013
Corporate Governance • Companies (Share Capital and Debentures) Rules,
2014
Shiv Nath Sinha • Spot Price Polling Mechanism
• Additional risk management norms for National
T he top two leadership roles in any company are the
Chief Executive Officer (CEO) and the Chairman of the
Board. A growing chorus of voices, from shareholder
•
Commodity Derivatives Exchanges
Trading Hours/Trading Holidays on Commodity
Derivatives Exchanges
activists to regulators, is calling for public listed companies
• Price Dissemination through SMS/Electronic
to separate the Chairman and CEO functions. The moot
question is while the combination of the two roles in a single Communication Facility
person may represent something of a risk factor but whether • Maintenance and Preservation of Records
the separation of the two functions alone is a guarantee of • Modification of Client Codes post Execution of Trades
the absence of risk. It is a debatable governance issue and, on National and Regional Commodity Derivatives
there is no clear substantiation that the separation of the two Exchanges– Clarification
positions improves financial performance. This paper • Programmes sponsored by the Exchanges through
analyzes the relevant provisions prescribed under the media channels
Corporate Governance Code in UK, South Africa, Australia, • Annual System Audit of Stock Brokers / Trading
OECD, USA and India. The paper also evaluates trend of Members of National Commodity Derivatives Exchanges
the separation of the leadership role in the listed companies
in India, USA & UK. Further, the paper measures the impact
of the separation of the role on Return on Equity. OTHER HIGHLIGHTS P-127
All India Research Paper Competition on •
P-101
Members Admitted / Restored
Valuation • Certificate of Practice Issued / Cancelled
• Licentiate ICSI Admitted
• Company Secretaries Benevolent Fund
• News From the Regions
National Training Programme Exclusive for P-103 • GST Corner
Women Empowerment • Brain Teasers
• 41st Regional Conference of Company Secretaries
• 44th National Convention of Company Secretaries
1st Global Congruence P-105

14 I
SEPTEMBER 2016 CHARTERED SECRETARY
 Articles in Chartered Secretary
Guidelines for Authors
1. Articles on subjects of interest to the profession of company secretaries are published in the Journal.
2. The article must be original contribution of the author.
3. The article must be an exclusive contribution for the Journal.
4. The article must not have been published elsewhere, and must not have been or must not be sent elsewhere
for publication, in the same or substantially the same form.
5. The article should ordinarily have 2500 to 4000 words. A longer article may be considered if the subject so
warrants.
6. The article must carry the name(s) of the author(s) on the title page only and nowhere else.
7. The articles go through blind review and are assessed on the parameters such as (a) relevance and usefulness
of the article (from the point of view of company secretaries), (b) organization of the article (structuring,
sequencing, construction, flow, etc.), (c) depth of the discussion, (d) persuasive strength of the article (idea/
argument/articulation), (e) does the article say something new and is it thought provoking, and (f) adequacy
of reference, source acknowledgement and bibliography, etc.
8. The copyright of the articles, if published in the Journal, shall vest with the Institute.
9. The Institute/the Editor of the Journal has the sole discretion to accept/reject an article for publication in the
Journal or to publish it with modification and editing, as it considers appropriate.
10. The article shall be accompanied by a summary in 150 words and mailed to [Link]@[Link]
11. The article shall be accompanied by a ‘Declaration-cum-Undertaking’ from the author(s) as under:

Declaration-cum-Undertaking
1. I, Shri/Ms./Dr./Professor…........................ declare that I have read and understood the Guidelines for Authors.
2. I affirm that:
a. the article titled “….....” is my original contribution and no portion of it has been adopted from any other
source;
b. this article is an exclusive contribution for Chartered Secretary and has not been / nor would be sent
elsewhere for publication; and
c. the copyright in respect of this article, if published in Chartered Secretary, shall vest with the Institute.
d. the views expressed in this article are not necessarily those of the Institute or the Editor of the Journal.
3. I undertake that I:
a. comply with the guidelines for authors,
b. shall abide by the decision of the Institute, i.e., whether this article will be published and / or will be
published with modification / editing.
c. shall be liable for any breach of this ‘Declaration-cum-Undertaking’.
(Signature)

14 I
CHARTERED SECRETARY SEPTEMBER 2016 15
MAY 2016
FROM THE PRESIDENT

�वद्य ददय�त �वन्ं �वन्यद्य�त पयततर त

पयत्वयद धनरयपनन�त धनयदरध ततः सख
ु रत
(�वद्य से �वन् आती है, �वन् से ्ोग्तय आती है । ्ोग्तय से धन आतय है,
धन से धमर और उसके बयद सुख आतय है।)

(Knowledge makes you humble;

humility gives you character;
good character attracts wealth;
wealth can be used for doing good deeds.
This in turn leads to happiness in the world.)

Esteemed Professional Colleagues

I
feel elated for the humongous praise and compliments showered on contour laid down by the Government is well implemented and executed.
the August issue of Chartered Secretary spotlighting GST. Staying in And, that is where the CS Fraternity has a great opportunity as well as
line, the nucleus of present issue is ‘The Insolvency and Bankruptcy responsibility. The Company Secretaries will emerge as expert insolvency
Code, 2016’, the biggest economic reform next only to GST which professionals and will have a valuable role to play in the insolvency
was passed by the Parliament in May, 2016. Forthwith, India has multiple resolution process. The Code is a new generation law and requires
laws to deal with insolvency, which lead to protrusive delays in winding up capacity building of the experts emerging as insolvency professionals.
procedure of any company. The Bankruptcy Code, consolidates the
existing framework and creates a new institutional structure in our country. In view of this, it was decided to make ‘The Insolvency and Bankruptcy
India ranks 136th in the World Bank’s resolving insolvency ranking, which is Code, 2016’, the ‘polestar’ of September issue of Chartered Secretary. I
below China, which ranks 55th and where it takes 1.7 years to resolve am contented to figure out that numerous brilliant scholars
insolvency as compared to 4.3 years in India. have sent remarkably intellectual contributions Pan-India. I believe that
these contributions will add to wisdom of our readers.
This Code is a welcome overhaul of the existing framework and a
consolidated legislation for Insolvency and Bankruptcy of individuals, On that note, let me continue apprising your goodselves about the steps
partnership firms, LLPs and Corporate sector that encourages entrepreneurs taken by the Institute in its journey towards excellence:
to head for a new start, while facilitating struggling firms to windup
painlessly. The Code has imbibed the constructive attributes of the 44th National Convention of Company Secretaries in Ahmedabad
Bankruptcy System prevalent in the US and the UK, such as providing for
a moratorium period during the resolution process, time-bound insolvency I am pleased to announce that the Institute is hosting its 44th National
process etc. It paves the way for much needed reforms while focussing on Convention of Company Secretaries at Ahmedabad, Gujarat from
creditor driven insolvency resolution. November 17-19, 2016 on an imperious theme “Powering Governance
– Empowering Stakeholders: CS - The Governance Professional.”
The new Code introduces a deadline for the bankruptcy process. The Through meticulously chosen sub–themes, namely, ‘CEOs Speak –
Code is a step in the right direction sonorously and should warrant Emulate Governance from Corporate Leaders’, ‘Looking Glass to 2022 –
accessibility to enhanced credit. However, it will be equally vital that the India at 75’, ‘Enhancing Skills – Finding the Way beyond Compliance’,

16 I
SEPTEMBER 2016 CHARTERED SECRETARY
 FROM THE PRESIDENT
‘Digital Drive – Empowering Knowledge Economy’, ‘Learning Experience 17th National Conference of Practising Company Secretaries
from Royal Majesties’, ‘Towards Meaningful Life’, an attempt has been
made to entice valuable deliberations to realize its core theme. The 17th National Conference of Practising Company Secretaries hosted
Distinguished Intelligentsia from discrete spheres such as Government, on August 12-13 at Kasauli, Himachal Pradesh witnessed a congregation
Regulators, Academia, our own Profession and Corporate Sector will be of esteemed members from different parts of the country. Hon’ble Mr. A. R.
enriching the esteemed gathering. Your participation will not only add to Kohli, Former Governor of Mizoram and Hon’ble Justice Mr. M. M. Kumar,
outstanding deliberations, but also render an opportunity for mutual give President, NCLT, graced the occasion as the Chief Guests at the Inaugural
and take of experience with your professional colleagues from all over the and Valedictory Sessions respectively. Further, Ms. Kiran Oberoi Vasudev,
country and abroad. I look forward for your gracious presence at Chairperson, Quality Review Board, ICSI, was the Guest of Honour at the
Ahmedabad from 17-19 November this year. Valedictory Session. The two day programme encapsulated technical
sessions/panel discussions on various contemporary themes like Startup
20th Annual Conference of Institute of Certified Public Secretaries of India, Goods and Services Tax, Financial Risk Management, Insolvency
Kenya and Bankruptcy Laws, Real Estate Act, Companies (Amendment) Bill,
2016, National Company Law Tribunal, Competition Law and Ease of Doing
The Institute of Certified Public Secretaries of Kenya (ICPSK) Business in India – Facilitations and Obstructions etc. addressed by
organized its 20th Annual International Conference on August 17-19 at eminent speakers from the Regulatory Bodies, Industry and Academia.
Mombasa. This high level Conference aimed at exploring the role of Good
Governance in transforming both public and private sectors institutions for London Global Convention, 2016
higher performance. ICSI was cordially invited to participate in
this Conference amongst other judicious participants such as members of I am pleased to inform you that the Institute of Company Secretaries of
the ICPSK, Government Ministries, County Governments, Constitutional India (ICSI) is an Associate Partner with the Institute of Directors (IOD) in
Commissions, Independent Offices, State Corporations, Semi-Autonomous organizing its Annual ‘16th London Global Convention 2016’ (in association
Government Agencies, Private Companies and Consultancy Firms. On behalf with TIMES NOW) on 17-19 October, 2016 at London. The theme of the
of ICSI, I presented a research paper on e-governance practices in India convention is ‘Corporate Governance and Sustainability: Board’s Oversight
during the session ‘Improving Governance and Service Delivery through in a Challenging Global Economy’. It will be a pleasure to meet you all at
E-Government: The Case of India’. London, it is a humble request to please block your diaries to make your
esteemed presence at this Convention.
Meetings
Insolvency and Bankruptcy Code, 2016
The Institute met following dignitaries with a view to explore opportunities
towards joint participation in flagship government initiatives and contribution As a captain of the ICSI ship, it is my honor to share that ICSI is extending
by our profession: its wholehearted support to the Ministry of Corporate Affairs in the process
• Sh. Arun Jaitley, Hon’ble Minister of Finance & Corporate Affairs of drafting Rules and Regulations relating to Insolvency Professionals,
• Mr. Arjun Ram Meghwal, Hon’ble Union Minister of State for Finance Insolvency Professional Agencies, Corporate Insolvency Resolution
and Corporate Affairs Process, Winding up Process etc. under the Insolvency and Bankruptcy
• Ms. Krishna Raj, Hon’ble Minister of State for Women and Child Code, 2016.
Development
• Sh. Hasmukh Adhia, Revenue Secretary, Department of Revenue, National Symposium at Bikaner
Ministry of Finance
• Hon’ble Justice Sh. S.J. Mukhopadhaya, Chairperson, NCLAT The Institute organized National Symposium on Good and Services Tax at
• Hon’ble Justice Sh. M. M. Kumar, President, NCLT Bikaner on August 13. Sh. Arjun Ram Meghwal, Hon’ble Union Minister of
• Sh. Upender Gupta, Commissioner, GST, Ministry of Finance. State for Finance and Corporate Affairs graced the occasion as Chief
Guest and addressed the gathering. A publication on ‘Goods and Services
Suggestions Submitted Tax – A Guide’ was also released on the occasion.

With a view to make our contribution towards better Governance, we GST Awareness Month
submitted our suggestions and representations to:
• The Ministry of Finance, Government of India Passage of Constitutional Amendment (122nd) Bill, 2014 in the Parliament
• The Ministry of Health & Family Welfare, Government of India is a historical milestone in India’s journey towards global reforms. With a
• The Ministry of Civil Aviation, Government of India view to enrich our professionals about vivid facets of GST, the Institute
• The Ministry of Consumer Affairs, Government of India commemorated August, 2016 as ‘GST Awareness Month’ and took various
• The Reserve Bank of India initiatives such as dedicating an issue of Chartered Secretary solely to
GST, creating a GST Corner at the Institute’s website, organizing
Meeting with the Empowered Committee of State Finance Ministers Awareness Programs, GST Awareness walks, webinars, seminars,
sharing of knowledge material and panel discussions etc.
The Institute got the opportunity to be a part of the meeting of Empowered
Committee of State Finance Ministers held to discuss GST related matters GST Corner
at New Delhi on August 30. During this meeting, lively and thought-
provoking deliberations were made on distinctive facets of GST. The Institute is proactively taking capacity building initiatives in the domain

I
CHARTERED SECRETARY SEPTEMBER 2016 17
FROM THE PRESIDENT

of proposed Goods and Services Tax. With a view to disseminate examine the changes proposed in Secretarial Standards on Meetings of
information about GST amongst the CS fraternity, a separate tab titled, the Board of Directors (SS-1) and General Meeting (SS-2), as submitted
‘GST Corner’ has been created on the Institute’s website containing by the ICSI. During the month of August, the Committee convened two
knowledge material, updates, details of events etc. related to GST at link meetings with the Institute to examine the proposed amendments
[Link] to the Secretarial Standards. ICSI perspective was presented on proposed
amendments and provided clarifications, wherever required by the
Master Classes on GST Committee. After considering the above, the Committee will submit its
report to MCA.
It gives us an immense pleasure to share with your goodselves that the
Institute has launching a series of Master Classes on GST through Submission of the Additional Information on the Companies
webinars with a view to enrich CS professionals and students. You are (Amendment) Bill, 2016 before the Hon’ble Parliamentary Standing
urged to roll up your sleeves and get set to dive into this vast ocean of Committee on Finance
opportunities by clicking link [Link]
In the month of June, ICSI has submitted a Memorandum containing views
HR Conclave – A New Push to ICSI Placement Endeavours and suggestions of the Institute on the Companies (Amendment) Bill,
2016. ICSI team led by myself had presented these views before the
ICSI believes in becoming a stepping stone for building careers for its Hon’ble Parliamentary Standing Committee. During the month of
members rather than just imparting education to them. Our placement team is August, additional required information was submitted to this Committee.
always on its toes to unlock all possible job opportunities for the members to
place them with leading companies Pan-India. Keeping this in mind, ICSI A Programme on ‘Career as a Company Secretary’ on Doordarshan
initiated first of its kind event and went a step further by organizing 1st HR
Conclave of ICSI jointly with Hindustan Times Media ([Link]) on August I feel pleased to share that Doordarshan National Channel telecasted a
30 at Hotel Leela, Ambience Island, Gurgaon. The event witnessed the programme on ‘Career as a Company Secretary’ during its Live Show
presence of around 150 HR Heads from many leading Companies, ‘Good Evening India’ on August 29 and I represented our revered
MNC’s, Banks, PSU’s, Consultancies, Start-ups etc. who were apprised of profession in the show. We are captivated to receive positive feedback
different roles a Company Secretary can play to lead the companies on the received from the viewers after telecast of this show.
path of excellence. The delegates expressed their ravishment and
delight that a Statutory Body like ICSI has pioneered for taking Directors’ Development Programmes for Effective Boards and Global
such ponderous initiatives setting an example for others and is coming forward Business Leaders
to get connected with Industry, which is in the interest of all stakeholders.
‘Leadership and learning are indispensable to each other.’ The Institute will
ICSI’s key aim for this Conclave was to showcase to the potential very soon launch its Directors’ Development Programme for Effective Boards
recruiters ‘Role and Importance of a Company Secretary’. We also and Global Business Leaders who are discharging the key role of directors.
released a new brochure “Company Secretary–Growth Carrier” This programme is our flagship course for Directors and potential Independent
which highlights multitude of roles a Company Secretary in employment can Directors to equip them with latest skills, tools and framework to maximise
play for their company. On behalf of ICSI, I delivered the keynote Board’s effectiveness, effective stakeholders’ relationship, constructive
address. A panel discussion on the topic “Restructuring the Organizational relations with peers and ensuring high standards of Corporate Governance.
Design to be Future Ready” was organized on the occasion. The panelists
for the same consisted of high profile HR leaders from large corporates. Global Congruence on International Corporate Governance Day
I assure my esteemed members that alike initiatives will be taken up in the
future to ensure quality placements in industry for CS professionals. The Institute has declared the year 2016 as the “Corporate Governance
Year”. Keeping this in view, the Institute conceptualised idea of having a day
ICSI National Award for Excellence in Corporate Governance and declared by the UNO as ‘International Corporate Governance Day’ to be
Corporate Social Responsibility observed by every member country to symbolize the importance of Corporate
Governance and to recreate and stand for the benefits of adopting good
ICSI has been recognising governance initiatives of the corporates and since corporate governance practices. To take this initiative forward, ICSI is
2001; we are presenting Annual Awards for Excellence in Corporate hosting its first ever Global Congruence on International Corporate
Governance. This year, along with organizing 16th ICSI National Awards Governance Day on 8-9 December, 2016 in Hyderabad. The Congruence is
for Excellence in Corporate Governance, a new category of awards expected to witness participation from academia, industry and regulators
i.e. 1st ICSI National Awards for Excellence in Corporate Social across Globe. Being a Governance professional, I humbly urge CS fraternity to
Responsibility has also been instituted by the Institute to join this initiative of the Institute and make it a grand success.
recognize CSR contributions of India Inc. The winners will be adjudicated
by the learned jury led by Hon’ble Sh. V.N. Khare, Former Chief Justice of Knowledge Treasure released at 17th PCS Conference
India. I humbly urge our esteemed members to ensure zestful participation
of their companies for nomination for both these awards. We seek pleasure in informing that to ensure dissemination of valuable
presentations and other knowledge material of the 17th National
Secretarial Standards Conference of Practising Company Secretaries among our esteemed
members, the Souvenir-cum-Backgrounder and the presentations made
The Ministry of Corporate Affairs (MCA) constituted a Committee to by eminent faculties, have already been uploaded at ICSI website.

18 I
SEPTEMBER 2016 CHARTERED SECRETARY
 FROM THE PRESIDENT
Further, following publications were also released at this Conference: Conference on ‘Ease of Doing Business: Distance to Destination’ held at
• Souvenir cum Backgrounder Federation House on August 05. Mr. Ramesh Abhishek, Secretary, DIPP,
• Guidance Note on Secretarial Audit (Release 1.3) graced the occasion as the Chief Guest. The Conference offered an insight
• Guidance Note on AOC-4 into understanding of the legal requirements and implications of the
• NCLT and NCLAT – Manual proposed amendments under the Companies Act, 2013 and the challenges
• Setting up of Practice by Company Secretaries which companies are still grappling with.
• Referencer on Board’s Report-Revised Edition
• SEBI (LODR) Regulations 2015 – Debt Securities ICSI as a Support Partner at FIBAC - Banking Conclave, Mumbai
• FAQs on Section 8 Companies
• Guidance Note on Code of Conduct ICSI was the Support Partner in FIBAC-2016 organized on August 16-17 at
• CS in Practice - Areas of Recognition Mumbai on the theme ‘New Horizons in Indian Banking’. It is an Annual Global
• Udaan – Showcasing the Reach and Strength of the Profession of Banking Conference hosted by FICCI and Indian Banks’ Association with
Company Secretaries renowned Boston Consulting Group (BCG) being the Knowledge Partner.
• CD containing ICSI Publications
• Brochure for Workshop on Image Makeover –The Confident You India Banking Reforms Conclave 2016 - Mumbai
• Brochure for Knowledge Essentiality Workshops on NCLT and NCLAT
– Law and Practice The Institute represented as an Institutional Partner at the India Banking
Reforms Conclave, 2016 organised by Governance Now and Public Policy
Release of Golden Leafs of ICSI National Conventions 1972- 2015 Magazine at Mumbai on August 24. The main focus of the conclave to
deliberate on challenges faced by Indian Banking Industry such as High
During 17th National PCS Conference, the ICSI for the first time compiled Non-Performing Assets, Governance, Risk Management, HR Challenges
and released ‘Golden Leafs of ICSI National Conventions 1972-2015’ and Transformations though Information and Communication
covering over four decades with a view to commemorate the glorious Technologies. I represented the Institute in this Conclave and
success of past National Conventions of ICSI. It gives glimpses of the presented ICSI’s views on ‘Banking Reforms with CS as a Key Player’.
golden yesteryears of ICSI Conventions and highlights the excerpts from
the speeches of the distinguished speakers. Workshops on Corporate Laws & Regulations, 2016

CS Olympiad ‘Anyone who stops learning is old, whether twenty or eighty.’ With a view
to update professionals about the latest amendments in Corporate laws,
ICSI had signed a Memorandum of Understanding (MoU) with the Science the Institute has joined hands with the PHD Chamber as an associate
Olympiad Foundation (SOF) for conducting the CS Olympiad for students partner in conducting workshop series on ‘Corporate Laws & Regulations,
of Classes 11 and 12 in schools across India. We believe that the free 2016 (Recent Amendments)’. 3rd and 4th workshop in the series were
exploring mind of an individual is his most valuable asset in the world. Cut off organised on August 9 and 10 respectively covering topics on Appointment
dates for CS Olympiad are 15 September and 4 October, 2016. I request and Meeting of Directors, Audit, Compromise, Amalgamation and Winding
my esteemed members to encourage students from eligible classes to reap Up, Insolvency Code, Acceptance of Deposits and FDI Policy, Takeover
this opportunity and apply making use of link [Link]. Code and Insider Trading, Securities Contract Act, Depositories Act etc.

Launch of Online Courses Webinar on NCLT and NCLAT

‘When you know better, you do better.’ To sharpen the axe As a part of the capacity building initiatives for members, ICSI has been
of the Governance professionals, the Institute has launched the following conducting a series of webinars on NCLT and NCLAT with a special focus
online Courses in association with National Institute of Financial on transfer of cases earlier dealt by Company Law Board and the manner
Management, Faridabad (NIFM): of presenting a case before the Tribunal as per NCLT Rules.

(a) Certificate Course in Valuation: The objective of the Course is to Income Declaration Scheme, 2016
enhance the skills of Company Secretaries in carrying out the
valuation assignment relevant in today’s business environment. The Institute is supporting the initiative of Income Declaration Scheme,
2016 by arranging for better dissemination of this Scheme amongst the CS
(b) Diploma in Internal Audit: This Course has been launched with the fraternity by hosting a link on website [Link]
objective of augmenting the skills and knowledge of the members in [Link]. Further, the Institute is also
the area of Internal Audit and opening up a vast world of opportunities allocating slots on Income Declaration scheme in various Professional
in the field of Internal Auditing. Development Programmes/Seminars/Conferences organized ICSI. One
such half day programme was organized at PHD Chamber of Commerce,
I request all esteemed members to enroll for this course to boost their Lucknow on August 1 addressed by Dr. Neil Jain, Joint Commissioner,
expertise in the area of valuation and Internal Audit. Income Tax Department.

Conference on Ease of Doing Business Release of e-book Pratibimb-Transcending Barriers

The Institute joined hands with FICCI, as a support partner in the ‘Pratibimb-Transcending Barriers’ is a key initiative of the ICSI towards

I
CHARTERED SECRETARY SEPTEMBER 2016 19
FROM THE PRESIDENT

development of personal and professional excellence of our esteemed realised that his players, whose each morsel he monitors, might not be able
members and students. The first Chapter of this e-book was released in to take this diet plan. He could have made it experiment on his players, but
July this year. The Second Chapter of the e-book titled ‘Walk the talk – he did not, he made this test on himself...!!
Effective Communication and Assertive Presence’ was released
during the month of August. Coming from a humble family having modest means, he placed a premium
on values and discipline. Even at the age of 11, it was his passion to win
Release of Publication - Ministry of Corporate Affairs - Swacch Bharat and his ability to work extremely hard were his priced assets. The strict
discipline and regular sleeping habits at home ensured that Gopichand was
Ministry of Corporate Affairs (MCA) observed ‘Swachh Bharat Pakhwada’ the first one to hit the practise courts at 5:30 am. This was a half hour
and reached out to 11 lakh corporates and professionals in collaboration earlier than his team mates, ensuring he got some more court time. Gopi’s
with prominent Industry bodies and Institutes including the our Institute. mother would walk for miles and avoided public transport to save money
We are happy to share that a Compendium sharing the glimpse of that was used to buy her son a shuttle cock. As Gopichand started his
activities during the fortnight has been published by the MCA and our climb to the top echelons of the Indian badminton scene, his family zestfully
Institute has been applauded for its efforts towards ‘Swacchta Drive’ endured lot of hardships and sacrifices.
initiated under the umbrella of ICSI in this Compendium.
Once, Gopichand spent a difficult and testing year recovering from a
Epilogue complex knee surgery that required over 30 stitches. He spent
months ‘without walking’ but not ‘without practising’ as he would continue
शोषणं भव�सन्ोोश प्रणं स्रसमरपद ।
to do wall practise even from a stationary position. He also nurtured a
यसय र्पोपकं समयकक तस्म श्रीरवर न्द ॥१०॥
reading habit and practiced yoga to improve his concentration during this
(The one who can help us cross this ocean of life, testing time. With extreme determination and unflinching faith,
the one who can reveal to us the Divine, Gopichand doggedly continued his rehabilitation for over a year and was
I adore his Paadukaas (hold on to his feet), eventually able to return to his past form.
I salute such a ‘Guru’.)
In the year 2000, at Sydney Olympics, when he had just lost the pre-
When everything feels like an uphill struggle, just think of the view on quarters at the Olympics and was naturally heartbroken and dejected with
reaching the top. Only those who can endure the climb, can enjoy this view, the turn of events, he turned to his fellow shuttler Aparna Popat “I do not
just keep going, one sunrise at a time...!! This thought flashed through my know if I shall be able to compete in the next Olympics, but I would like to
mind instantly when I heard of PV Sindhu’s victory in Rio Olympics. But, can coach someone and bring home an Olympic medal through them.” 16
we ignore the hidden hero behind this victory who deserves equal applause? years down the line, Gopichand has not only kept his word and ensured
(not one, but two) Olympic medals for India, he has also put Indian
And doesn’t this victory is itself commemoration of Teacher’s Day 2016 as badminton on the world map! Today, in Saina Nehwal and PV Sindhu,
it has brought in spotlight the struggle and sweat of a ‘Guru’. He Gopichand has given our Nation two World champions and a new lease of
is Badminton Guru Pullela Gopichand, the Coach, who is now known life to Badminton in this sub-continent.
for producing Olympic Medalists. He has always been the pillar of firm
support for all his pupils’ right from Saina Nehwal, PV Sindhu, Srikanth In his own words “When I started out as a coach, there were many who
Kidambi, Parupalli Kashyap to Prannoy Kumar, Arundhati Pantawane, dissuaded me saying the system will not let you succeed. But I feel it is
Gurusai Datt and Arun Vishnu, all big names in the game now. important to keep pushing. I saw ourselves as world beaters and I wanted
to prove the sceptics wrong.’’
It’s not a child’s play to produce Olympic medalists. One simply can’t
manufacture one. However gifted the player may be, it’s not a cherry pie. We need more Gurus’ like you Gopichand in every sphere of life, be it
It takes the fortitude of Guru like Gopichand’s adroit mind, resolute spirit sports, education, work or family. We salute your spirit Gopichand! Friends,
and unyielding work ethics to churn out players who could become World We the ICSIans are all trainers and trainees and we are all givers and
Champions some day. PV Sindhu’s triumph in the women’s singles seekers. Let us give our best and the world will reboot the same and return
quarter-finals of the Rio Olympics over Wang Yihan, the World number two in bountiful doses. A very Happy Teachers Day!
and the silver medalist at the London Olympics, which made India proud
universally, is the result of that “You can do it’’ Mantra of Gopichand. I look forward to greet and welcome your goodselves to the National
Convention, 2016!!
Keeping alive the quintessential and illustrative ‘Guru-Shishya’ tradition, there
is a stalwart philosophy. He believes that a coach or a Guru needs to Best wishes.
take absolute responsibility for the performance of his Shishyas’ (players). He
believes that training should always be stern; it should be killing, so that
the final match seems to be a cakewalk to win. He considers it duty of the
teacher to chalk out a strategy or blueprint and believes that a player’s energy Yours sincerely
should focus only on ‘execution’. His pupils recall him making experiment on
himself rather than on his players in 2012 when he went on a Ketogenic diet,
popular in the US then, for whole year just to probe if his players would be September 05, 2016
able to take it. He restricted his own food intake to just 8-10 items given New Delhi (CS MAMTA BINANI)
in that diet chart. He read and researched and he dropped the idea when he president@[Link]

20 I
SEPTEMBER 2016 CHARTERED SECRETARY
 ARTICLES
1
n INSOLVENCY AND BANKRUPTCY CODE, 2016

n INSOLVENCY AND BANKRUPTCY CODE –A LOOK FROM A COMMON MAN’S PERSPECTIVE

n THE INSOLVENCY AND BANKRUPTCY CODE, 2016

n INSOLVENCY AND BANKRUPTCY CODE, 2016

n CHALLENGES IN IMPLEMENTATION OF INSOLVENCY AND BANKRUPTCY CODE

n CORPORATE INSOLVENCY RESOLUTION PROCESS – BRIEF ANALYSIS AND CHALLENGES

n CORPORATE INSOLVENCY RESOLUTION PROCESS UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016: - AN ANALYSIS

n CORPORATE INSOLVENCY RESOLUTION PROCESS UNDER THE BANKRUPTCY CODE AND ITS
IMPACT ON THE COMPANIES ACT

n INSOLVENCY AND BANKRUPTCY CODE, 2016 - FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS

n INFORMATION UTILITIES – PROVIDER OF LEVEL PLAYING FIELD IN INSOLVENCY AND BANKRUPTCY PROCESS

n POSITION OF SECURED CREDITOR IN THE WINDING UP AND IN THE LIQUIDATION OF CORPORATE DEBTOR

n WINDING UP OF COMPANIES UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

n OPPORTUNITIES FOR COMPANY SECRETARIES UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

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CHARTERED SECRETARY SEPTEMBER 2016 21
22 I
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Insolvency and Bankruptcy Code, 2016

ARTICLE
BACKGROUND to examine and make recommendations with
regard to the desirability of changes in existing

I
n India, there were multiple laws like Sick law relating to winding up of companies
Industrial Companies (Special Provisions) so as to achieve more transparency and
Act, 1985 (SICA), the Recovery of Debt avoid delays in the final liquidation of the
Due to Banks and Financial Institutions Act, companies. The committee completed its
1993, the Securitisation and Reconstruction of work and submitted its report to the Central
Financial Assets and Enforcement of Security Government in the year 2000. The committee
Interest Act, 2002 (SARFAESI) and the recommended that the jurisdiction, power and
Companies Act, 2013 dealing with insolvency authority relating to winding up of companies
and bankruptcy of companies, limited liability should be vested in a National Company Law
Rakesh Wadhwa, FCS partnerships, partnerships firms, individuals Tribunal instead of the High Court.
Advocate and other legal entities in India. As a result
PWR Associates, Corporate & High Courts, District Courts, the Company In December 2002, Indian Parliament passed
Legal Advisors, New Delhi Law Board, the Board for Industrial and the Companies (Second Amendment) Act,
contact@[Link] Financial Reconstruction (BIFR) and the Debt 2002 to restructure the Companies Act, 1956
Recovery Tribunals (DRTs), have jurisdiction including the setting up of NCLT and NCLAT.
at various stages, giving rise to the potential Dr J J Irani committee was set up to deal with

Since the present legal framework does not aid lenders

in effective and timely recovery of defaulted assets
thus causing undue strain on the Indian credit system,
the Government has come out with a consolidated
Code for dealing with individual and corporate
insolvency and bankruptcy. The focus of this article is
on the highlights of the Code.

of systemic delays and complexities in the weaknesses of the Second Amendment Act..
process whereas liquidation of companies is On 31st May, 2005, Dr J J Irani committee
handled by the high courts, individual cases handed over its report to Government of India.
are dealt with under the Presidency Towns Key recommendations of the committee were
Insolvency Act, 1909 and Provincial Insolvency time bound proceedings, applicability and
Act, 1920. The present legal framework does accessibilities, moratorium and suspension
not aid lenders in effective and timely recovery of proceedings, operating agencies,
of defaulted assets and causes undue strain appointment of Administrators and their
on the Indian credit system. duties, Creditor’s committee and liquidators,
increased role of professionals, insolvency
‘Insolvency means the situation where an practitioners, cross border insolvency etc.
entity cannot raise enough cash to meet its
obligations or to pay debts as they become Considering the abovementioned
due for payment and bankruptcy means recommendations, the Government set
when a person voluntary declares him as an in motion a plan to overhaul the existing
insolvent and goes to the court. On declaring bankruptcy laws and replace them with
the person as ‘bankrupt’, the court is one that will facilitate easy and time-bound
responsible to liquidate the personal property closure of businesses. The draft legislation
of the insolvent and distribute it among the was based on the report of a high-level
creditors of the insolvent. panel headed by former law secretary T.K.
Viswanathan. The Finance Ministry put up
In the year 1999, the Government of India set the Insolvency and Bankruptcy Bill, 2015 on
up a High Level Committee headed by Justice its website for public comments and it was
V.B. Eradi, Judge of Supreme Court of India passed on 05th May, 2016 by the Parliament

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 INSOLVENCY AND BANKRUPTCY CODE, 2016
ARTICLE

The purpose of this intermediary APPLICABILTY OF THE CODE

(Information utility) is to remove
information dependency on the
debtor’s for critical information that
is required to resolve insolvency.
And this information would be
available to creditors, resolution
professionals, liquidators and other
stakeholders in insolvency and
bankruptcy proceedings.
as The Insolvency and Bankruptcy Code, 2016 and came into force
vide notification dated 28th May, 2016.

Multiplicity of laws and adjudicating authorities for Insolvency and

bankruptcy of various entities were a hindrance towards resolution
of recovery problems of creditors and declaration of insolvency,
their revival plan and liquidation of corporate entities. The objective
of Insolvency and Bankruptcy Code, 2016 is to consolidate multiple
laws and adjudicating authorities dealing with insolvency, bankruptcy,
revival and/or liquidation of various entities including individual, This Code is not applicable to the entities which are engaged in
partnership firms, corporate entities etc. Earlier laws pertaining to providing financial services like for instance the NBFCs, investment
DRT and SARFAESI were the exclusive forums for banks/financial companies etc.
institutions while BIFR and Companies Act had limited application for
sick companies, their revival and/or liquidation. The Insolvency and INSTITUTIONAL SET UP UNDER THE CODE
Bankruptcy Code, 2016 will overcome these kind of problems. (A) INSOLVENCY AND BANKRUPTCY BOARD (IBB)
Section 3 (1) of IBC, 2016: Board means the Insolvency and
THE CODE Bankruptcy Board of India established under sub-section (1) of
The Insolvency and Bankruptcy Code, 2016 extends to the whole Section 188
of India (except Part III which deals with Insolvency Resolution and
Bankruptcy for Individuals and Partnership Firms of the Code which The Code provides for the establishment of the Board called
shall not extend to the State of Jammu and Kashmir). Insolvency and Bankruptcy Board of India. The Board shall consist
of the following members, who shall be appointed by the Central
In order to welcome foreign investors to invest in the Indian economy Government:
and with a view to ease doing business in India, the Insolvency and 1. Chairperson
Bankruptcy Code, 2016 is going to play a vital role in the economic 2. Three members amongst the officers of the Central Government
system of the country. not below the rank of Joint Secretary or equivalent, one of each
to represent the Ministry of Finance, the Ministry of Corporate
OBJECTIVES OF THE CODE Affairs and Ministry of Law, ex officio.
3. One member nominated by the Reserve Bank of India, ex officio
4. Five other members to be nominated by the Central Government,
out of which three shall be the whole-time members.

Role of the Board includes:

1. Regulating all matters related to insolvency and bankruptcy
process.
2. Setting out eligibility requirements of insolvency intermediaries
i.e., Insolvency Professionals, Insolvency Professional Agencies
and Information Utilities.
3. Regulating entry, registration and exit of insolvency intermediaries.
4. Making model bye laws for Insolvency Professional Agencies.
5. Setting out regulatory standards for Insolvency Professionals.
6. Specifying the manners in which Information Utilities can collect
and store data.

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 INSOLVENCY AND BANKRUPTCY CODE, 2016

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7. Overseeing the functioning of insolvency intermediaries and the Functions of Insolvency Professionals:-
resolution process.

(B) INSOLVENCY INTERMEDIARIES

Individual Corporate
Insolvency Insolvency
Resolution Resolution
Process Analyse Process
the
application
data submitted
by the
Individual creditors
Liquidation
Bankruptcy of Corporate
Process Debtor

Every Insolvency Professional shall abide by the following code of

conduct:-
• To take reasonable care and diligence while performing his
INSOLVENCY PROFESSIONAL AGENCIES (IPAs) duties.
Section 3 (20) of IBC, 2016: insolvency professional agency means • To comply with all requirements and terms and conditions
any person registered with the Board under section 201 as an specified in the bye-laws of the insolvency professional agency
insolvency professional agency of which he is a member.
• To allow the insolvency professional agency to inspect his
These agencies are required to get registered and obtain certificate records.
of registration from the Board. The Board shall have regard to the • To submit a copy of the records of every proceeding before the
following principles while registering the insolvency professional Adjudicating Authority to the Board as well as to the insolvency
agencies, namely: professional agency of which he is a member.
• To perform his function in such manner and subject to such
1. Promote the professional development of and regulation of conditions as may be specified.
insolvency professionals.
2. Promote good professional and ethical conduct amongst INFORMATION UTILITY
insolvency professionals. Section 3 (21) of IBC, 2016: information utility means a person who is
3. Protect the interests of debtors, creditors etc. registered with the Board as an information utility under Section 210.
4. Promote the services of competent insolvency professionals to
cater to the needs of A person shall obtain a certificate of registration by the Board to carry
debtors, creditors etc on its business as information utility under this Code. The purpose
5. Promote the growth of insolvency professional agencies for the of this intermediary (Information utility) is to remove information
effective resolution of insolvency and bankruptcy processes dependency on the debtor’s for critical information that is required
under this Code. to resolve insolvency. And this information would be available to
creditors, resolution professionals, liquidators and other stakeholders
INSOLVENCY PROFESSIONALS (IPs) in insolvency and bankruptcy proceedings.
Section 3 (19) of IBC, 2016: insolvency professional means a person
enrolled under section 206 with an insolvency professional agency Obligations of Information Utility
as its member and registered with the Board as an insolvency • Collect, collate, authenticate and disseminate financial
professional under section 207. information of debtors in a universally accessible format
• Get the information received from various persons authenticated
The Code provides for insolvency professionals as intermediaries by all concerned parties before storing such information
who would play a key role in the efficient working of the insolvency • Provide access to the financial information stored by it to any
and bankruptcy process. These professionals will be enrolled as a person who intends to access such information
member of an insolvency professional agency and registered with • Have the ability to operate with other information utilities.
Insolvency and Bankruptcy Board of India. The Board may specify the
categories of professionals or persons possessing such qualifications (C) ADJUDICATORY AUTHORITIES
and experience in the field of finance, law, management, insolvency • The National Company Law Tribunal is the adjudicating authority
or such other field, as it deems fit. to deal with the insolvency matters of Companies and Limited
Liability Partnership Firms. Appeals from NCLT orders lie to the

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 INSOLVENCY AND BANKRUPTCY CODE, 2016
ARTICLE

National Company Law Appellate Tribunal and thereafter to cannot be completed within one hundred and eighty days then
the Supreme Court of India. one time extension of ninety days subject to resolution passed at
• NCLAT shall be the appellate authority to hear appeals arising a meeting of the committee of creditors by a vote of seventy-five
out of the orders passed by the Board in respect of Insolvency percent of the voting shares.
Professional Agency or Insolvency Professional or Information
Utilities. Here, ‘committee of creditors’ means the committee which shall
• The Debt Recovery Tribunal is the adjudicating authority to comprise of all financial creditors of the Company or Limited
deal with the insolvency & bankruptcy matters of Individual & Liability Partnership Firms.
Partnership Firms. Appeals from DRT orders lie to the Debt After admission of the application, National Company Law
Recovery Appellate Tribunal and thereafter to the Supreme Tribunal shall by an order:
Court of India.
CORPORATE INSOLVENCY
RESOLUTION PROCESS
Part II of the Code deals with matters relating to the insolvency and
liquidation of Companies and Limited Liability Partnership Firms
where the minimum amount of the default is Rupees one lakh
and this amount can be increased up to Rupees one crore by the
Central Government.

WHO MAY FILE AN APPLICATION TO THE

ADJUDICATING AUTHORITY:
Appoint
Financial Creditors are the creditors to whom an interim
corporate debtor owes financial debt
resolution
Operational Creditors are the creditors to professional
whom corporate debtor owes operational
debts such as claims for goods and services,
employees, etc.

Corporate Applicant means corporate debtor

or its shareholders, partner, management
MORATORIUM
personnel or employees. The NCLT orders a moratorium on the debtor’s operations for the
period of the Insolvency Resolution Process. This operates as a
‘calm period’ during which no judicial proceedings for recovery,
On receipt of an application, the Adjudicating Authority shall within enforcement of security interest, sale or transfer of assets/ legal
fourteen days by order: rights/ beneficial interest can take place against the debtors.
The order of moratorium shall have effect till the completion of
corporate insolvency process.

Admit the PUBLIC ANNOUNCEMENT

application, if it Reject the The public announcement shall contain the following information
is complete application, if it about the corporate debtor:
is incomplete 1. Name and address
2. Name of the Registrar with which it is incorporated
3. Last date for submission of claims
Before rejecting an application, the Adjudicating Authority gives a 4. Details of interim professionals
notice to the applicant to rectify the defect from the application within 5. Penalties for false or misleading claims
seven days of receipt of such notice from the Adjudicating Authority. 6. Date on which the corporate insolvency resolution process
shall close
STRICT TIMELINES FOR COMPLETION OF INSOLVENCY APPOINTMENT OF INTERIM RESOLUTION
RESOLUTION PROCESS PROFESSIONAL
The Corporate Insolvency resolution process shall be completed The Adjudicating Authority shall appoint an Interim Resolution
within one hundred and eighty days from the date the application Professional within fourteen days from the insolvency
is admitted by the National Company Law Tribunal. If the process commencement date.

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 INSOLVENCY AND BANKRUPTCY CODE, 2016

ARTICLE
Functions of interim professional are:
• To take over the management of the affairs of the corporate An application for fast track corporate insolvency resolution process
debtor. may be made in respect of the following corporate debtors, namely:-
• All officers and managers of the corporate debtor shall act on (a) a corporate (b) a corporate (c) such other
the instructions of the interim professionals. debtor with assets debtor with such category of
• Have access to all books of account, record and other relevant and income class of creditors corporate
documents shall be managed by these professionals. below a level as or such amount persons as
may be notified of debt as may may be notified
COMMITTEE OF CREDITORS by the Central be notified by by the Central
Government; or the Central Government.
The Interim Professionals identify the financial creditors and Government; or
constitute a committee of creditors. Operational creditors are
allowed to attend the meetings of committee if their dues are
not less than ten percent of the debt but they do not have voting TIME LIMIT FOR COMPLETION OF FAST TRACK
power. CORPORATE INSOLVENCY RESOLUTION PROCESS:

Each decision of the committee requires a seventy five per cent

90
majority vote.

APPOINTMENT OF FINAL RESOLUTION

PROFESSIONAL Days

135
The first meeting of the Committee shall be held within seven
days of the constitution of the committee of creditors where may:

Resolve to appoint Replace the interim Days

the interim resolution resolution professional

45
OR
professional as a final by another resolution
resolution professional professional.

Days
The Final Resolution Professionals-
Extension
• Shall conduct the entire corporate insolvency process
• Manage operations of the corporate debtor
• Have the same powers as that of the interim professionals
under the Code. INSOLVENCY RESOLUTION PROCESS FOR INDIVIDUALS/
UNLIMITED PARTNERSHIPS
RESOLUTION PLAN
• A resolution applicant may submit a resolution plan to the final Part III of the Code deals with matters relating to the insolvency and
resolution professional. liquidation of Individuals and Unlimited Partnership Firms where
• Final resolution professional examine the plan. the minimum amount of the default is one thousand rupees and
• Then he shall present such plan to the committee of creditors for this amount can be increased up to one lakh rupees by the Central
their approval. Government.
• After obtaining approval from the committee of creditors, final Fresh start process: Under this process, eligible debtors as specified
resolution professional shall submit the approved plan to the in the Code can apply to the Debt Recovery Tribunal for a fresh start
Adjudicating Authority. for discharge of his qualifying debt. After filing an application, an
• If the Adjudicating Authority approves the plan, then this will interim- moratorium shall commence on the date of filing of the said
be binding upon the employees, members, creditors and other application.
stakeholders. And after approval of the plan, time period of
moratorium ends here. The insolvency resolution process consists of a repayment plan by
• If application gets rejected, then NCLT shall pass an order of the debtor, for approval of creditor.
liquidation of the corporate debtor and requires such order shall If approved, the Debt Recovery Tribunal passes an order binding the
be sent to the registering authority. debtor and creditors to the repayment plan.
If rejected, the debtor or creditors may apply for bankruptcy order.
FAST TRACK CORPORATE INSOLVENCY
RESOLUTION PROCESS The Ministry of Corporate Affairs (MCA) in on the fast-track to give
Chapter IV of Part II of Insolvency and Bankruptcy Code, 2016 deals final shape to the respective rules so that the IBC may be implemented
with the fast track insolvency resolution process. after notification thereof.

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 INSOLVENCY AND BANKRUPTCY CODE, 2016
ARTICLE

REGULATIONS WHICH ARE LIKELY TO BE APPOINTMENT

INTRODUCED IN THE UPCOMING DAYS

02 Required
Company Secretary
01 Insolvency and Bankruptcy
(Registration of Insolvency
Professional Agencies) 03 Azure Jouel Private Limited,
Regulations, 2016 having its registered office in Mumbai and
Insolvency Insolvency
and and engaged in the business of manufacturing

04
Bankruptcy Bankruptcy and dealing in studded diamond jewellery
(Model (Registration
Bye-laws) of Insolvency requires a Company Secretary. The
Regulations, Professional) incumbent should be an ACS with 4 years
Regulations,
2016
2016 of relevant working experience. Apply with
Insolvency and Bankruptcy
(Redressal of Grievances
confidence within 15 days stating age,
against Insolvency qualification, experience and details of
Professionals, Insolvency salary drawn and expectation to: -
Professional Agencies
and Information Utilities)
Regulations, 2016 Unit No. GJ-8, 1st Floor,
SDF – VII, Phase – II,
SEEPZ-SEZ, Andheri (East),
CONCLUSION Mumbai, Maharashtra – 400 096
Indian Economy is in the process of revolution in legal system and
to bring ease of doing business-a vision of the Prime Minister-Shri

APPOINTMENT
Narendra Modi-realty at ground level. Enactment and implementation
of the code will not only improve the Indian ranking on world map in
ease of doing business but also it will improve credit market, GDP
growth, FDI and business environment as a whole. The Insolvency
and Bankruptcy Code, 2016 is the only law which is available to the Required
financial & operational creditors and the debtors alike. Earlier Laws
pertaining to DRT and SARFAESI were exclusive forums for bank/
financial institutions only but now the individuals/partnership firms can
Company Secretary
also approach to DRT for declaration of insolvency and Corporate
Entities/Creditors can approach to National Company Law Tribunal Gwalior Properties and Estates
(NCLT) under IBC for declaration of insolvency and liquidation. This Private Limited, a Non-Banking Financial
Code promises to bring war footing reforms with the special thrust on Company (NBFC) having its registered
creditors driven insolvency resolution in a time-bound manner. It will office in Mumbai and incorporated with the
improve the debt recovery rates and to maximize the realizable value
of insolvent firms.
object of investment and financial activities
requires a Company Secretary. The
While implementing the code, the following points shall be taken incumbent should be an ACS with minimum
care of: 2 years of relevant working experience.
1. Appointment of Insolvency Professional Agencies, their Nos Apply with confidence within 15 days
and qualitative competitiveness.
stating age, qualification, experience and
2. Uniformity in selection criteria of Insolvency Professionals.
3. Regulatory control of Insolvency and Bankruptcy Board over details of salary drawn and expected to: -
IPAs and IPAs over Insolvency professionals etc.
Industry House, 1st Floor, 159,
The success of the said code will be in how it is implemented. There Churchgate Reclamation,
will be various legal, logical, procedural hurdles which will be required Mumbai – 400 020
to be overcome and the coming days will be crucial on tightening of
nuts and bolts of the rules which are expected to be notified very
soon CS

28 I
SEPTEMBER 2016 CHARTERED SECRETARY
Insolvency and Bankruptcy Code –

ARTICLE
A look from a common man’s perspective
T
he Insolvency and Bankruptcy enactments, there are no provisions for
Code was finally published in pre-bankruptcy insolvency resolution
the Official Gazette on 28th May process, nor is there a provision for ‘fresh
2016, thus putting an end to months start process’ for individuals. What these
of anxious wait, mainly by the secured enactments contained were provisions
creditors and unsecured creditors, who for liquidation of estate of an individual
look forward to a single law, that would bankrupt. In contrast to this, the ‘fresh
replace a host of other laws governing start process’ under the Code is a totally
individual and corporate bankruptcy and new concept in India, which would
insolvency. allow persons to get a fresh start to life.
N. Balasubramanian, FCS
Director & Chief Consultant At present the individual and corporate bankruptcy is
Directus Consultants Private governed by a host of legislations making the
Limited, Cochin
balu@[Link] procedure quite complex and cumbersome. The
Insolvency and Bankruptcy Code, 2016, however is a
consolidated single code that will govern insolvency
and bankruptcy proceedings in the future. Its basic
features relating to individual bankruptcy proceedings
are examined from the angle of a common man here.

The common man can also breathe a Another new concept which was hitherto
sign of relief, in that his needs are very not there in the earlier legislations is that
much addressed by the new law. Let us of Insolvency Resolution Professionals,
now proceed to examine how the Code who will be playing a major part during
helps the individual. the insolvency process and also in
Broadly speaking, Chapters I to VII of forming Information Utilities.
Part III titled “Insolvency Resolution
and Bankruptcy for individuals and FRESH START PROCESS
partnership firms” contain provisions Sections 80-93 deal with fresh start
that are applicable to individuals. These process. Let us now examine this
provisions are contained in Sections 78 procedure.
to 187 of the Code. Chapter I of Part III • An application is to be filed and an
contains 21 definitions. interim-moratorium shall commence
Individual borrowers and consumers on the date of filing of said application
can now start their lives afresh after and shall cease to have effect on the
being declared bankrupt. They also have date of admission or rejection of such
the option of initiating the insolvency application.
resolution process by themselves, in • If an application is filed by the debtor
the happening of certain events. The through resolution professional, the
District Courts no longer will have power Adjudicating Authority shall direct the
to resolve disputes, and Debt Recovery Board within 7 days of the date of
Tribunals will substitute them . receipt of the application.
Before the Code , there were two separate • The resolution professional is to
enactments, that is Presidency Towns examine the application within 10
Insolvency Act, 1909 and Provisional days of his appointment, and submit
Insolvency Act, 1920, governing a report to the Adjudicating Authority,
insolvency of individuals. In both these either recommending acceptance or

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 INSOLVENCY AND BANKRUPTCY CODE –A LOOK FROM A COMMON MAN’S PERSPECTIVE
ARTICLE

date of submission of the report by the resolution

professional, pass an order either admitting or rejecting the
application.
• The interim-moratorium period commences as soon as
application is accepted.
• The Adjudicating Authority shall issue a public notice within
7 days of passing the order under Section 100, inviting
claims from all creditors within 21 days of such issue
• The creditors shall register claims with the resolution
professional by sending details of the claims by way of
electronic communications or through courier, speed post
or registered letter.
• The debtor shall prepare, in consultation with the resolution
professional, a repayment plan containing a proposal to the
creditors for restructuring of his debts or affairs.
• The resolution professional shall submit the repayment
plan along with his report on such plan to the Adjudicating
Authority within a period of 21 days from the last date of
submission of claims.
• The repayment plan or any modification to the repayment
plan shall be approved by a majority of more than 3/4thin
rejection of the application. value of the creditors present in person or by proxy and
• The Adjudicating Authority, may, within 14 days from the voting on the resolution in a meeting of the creditors.
date of submission of the report by the resolution • The resolution professional shall issue a notice calling the
professional, pass an order either admitting or rejecting the meeting of the creditors at least 14 days before the date
application. fixed for such meeting and creditor shall be entitled to vote
• Any creditor mentioned in the order of the Adjudicating at every meeting of the creditors in respect of the
Authority to whom a qualifying debt is owed may, within a repayment plan in accordance with the voting share
period of 10 days from the date of receipt of the order assigned to him.
object only on the following grounds, namely:— (i) inclusion • The Adjudicating Authority shall by an order approve or
of a debt as a qualifying debt; or (ii) incorrectness of the reject the repayment plan on the basis of the report of the
details of the qualifying debt specified in the order. meeting of the creditors submitted by the resolution
• The debtor or the creditor who is aggrieved by the action professional.
taken by the resolution professional may, within 10 days of • The resolution professional appointed shall supervise the
such decision, make an application to the Adjudicating implementation of the repayment plan.
Authority. • On the basis of the repayment plan, the resolution
• Where the debtor or the creditor is of the opinion that professional shall apply to the Adjudicating Authority for a
the resolution professional appointed under section 82 is discharge order in relation to the debts mentioned in the
required to be replaced, he may apply to the Adjudicating repayment plan and the Adjudicating Authority shall pass
Authority for the replacement of such resolution professional. discharge order.
• The resolution professional shall prepare a final list of
qualifying debts and submit such list to the Adjudicating THE CODE FROM A DEBTOR’S VIEWPOINT
Authority at least 7 days before the moratorium period Certain assets have been excluded to be claimed by lenders.
comes to an end. These are dealt with by section 79(13) speaking about the
An individual can discharge all his current liabilities under definition of “excluded assets”. Accordingly, excluded debts
a systematic and controlled manner, as per the procedure include–
of insolvency resolution process enshrined in the Code. (a) Unencumbered tools, books, vehicles and other equipment
Separate recovery harassment from different creditors can as are necessary to the debtor or bankrupt for his personal
thus be avoided. use or for the purpose of his employment, business or
vocation.
Sections 94-120 deal with Insolvency resolution process. (b) Unencumbered furniture, household equipment and
• Application is to be made either by debtor/creditor provisions as are necessary for satisfying the basic
• If the application under section 94 or 95 is filed through a domestic needs of the bankrupt and his immediate family.
resolution professional, the Adjudicating Authority shall (c) Any unencumbered personal ornaments of the debtor
direct the Board within 7 days of the date of the application or his immediate family which cannot be parted with, in
to confirm that there are no disciplinary proceedings accordance with religious usage.
pending against resolution professional. (d) Any unencumbered life insurance policy or pension plan
• The Adjudicating Authority may, within 14 days from the taken in the name of debtor or his immediate family.

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An individual can discharge all his following events:-
(a) When the gross annual income of the debtor is not more
current liabilities under a systematic than Rs.60,000.
and controlled manner, as per the (b) If the aggregate value of debtor’s assets is not more than
Rs.20,000.
procedure of insolvency resolution (c) If the debtor does not own a dwelling unit.
process enshrined in the Code. (d) If the total value of the qualifying debts does not exceed
Rs,35,000.
Separate recovery harassment from (e) If the debtor is not an undischarged bankrupt.
different creditors can thus be avoided. (f) If no previous order under this Code has been made in
relation to debtor in the preceding 12 months of the date of
application.
(e) An unencumbered single dwelling unit owned by the debtor
of such value as may be prescribed.
BANKRUPTCY ORDER FOR INDIVIDUALS AND
Though these assets are excluded, lenders can claim other PARTNERSHIP FIRMS
properties belonging to the debtor. However, if the debtor (a) Application to be filed.
has designed his transaction merely with intent to defeat the (b) Apply to the Board for appointing Bankruptcy Trustee.
rights of the creditor, then the Trustee gets a right to examine (c) Adjudicating Authority will pass Bankruptcy order.
and cancel such transactions. There are instances where (d) Complying with procedures like publishing in newspapers,
debtors, expecting a tight liquidity position, transfer all assets statement of affairs, registration of claims, meeting the
to their family members. But it is to be understood that such claimants, distributing the estate of the bankrupt.
transactions will be verified, to know if the assets transferred (e) Completing the administration or discharge order.
exceed the bare minimum required for the maintenance of the (f) If the insolvency resolution process fails, the individual
debtor and his family. concerned can be taken to bankruptcy, if the creditor so
wishes.
THE CODE, FROM A CREDITOR’S VIEWPOINT
If there is an evidence of default on payments, a single creditor OTHER IMPORTANT POINTS
or several creditors can jointly trigger insolvency. There • The Code carries a clear focus on quick decision-making,
should be an actual default . A resolution professional can be be it turnaround or liquidation. In contrast to an early
appointed by the creditor and trigger the insolvency process, by settlement of all stakeholder issues, the Code rather lays
filing an application. The bankruptcy process can be initiated, thrust on the speedy release of scarce capital assets
if it has been found that the insolvency resolution process was locked in a closed unit for productive use.
initiated to defraud the creditors, or if the insolvency resolution • Also a significant provision in the Code pertains to the
process fails, due to non disclosure of information by debtors, waterfall mechanism, whereby liquidaton proceeds will be
or rejection of repayment plan by creditors, or repayment plan paid in the following sequential manner:
not fully implemented. - Secured creditors
If an individual is unable to pay his debts or in the event of - Workmen’s dues for 12 months
his committing a default, he himself can trigger an insolvency - Employees other than workmen
process. If the individual’s income and assets is less than the - Unsecured creditors.
specified limits, he would be eligible for a discharge from the
“qualifying debts”. Qualifying debts include all unsecured debts An interesting thing to note is that Government dues have
except certain debts incurred due to fine or penalty imposed by been given least priority and figure after most
the Court or a debt incurred in the past 3 months before filing a other dues.
Fresh Start Process application. • It would be interesting to note that the present laws protect
The Insolvency Resolution Professional will examine and only financial creditors, especially banking creditors. The
prepare a final list of all qualifying debts within 180 days or 6 Code also seeks to protect the interests of operational
months from the date of application. At the expiry of this period, creditors. It provides for orderly and timely resolution of
the Adjudicating Authority will pass an order on discharge of the default and insolvency of companies, firms and individuals.
debtor from the qualifying debts, thus giving him an opportunity As regards, banks and financial institutions, the Government
to start afresh, financially. At this juncture, it would be worthy is working through a task force, to set up a separate
to note that since all the information will become public any legislation for financial institutions.
foreign travel would require the approval by the Adjudicating
authority, and hence the fresh start process in fact should not CONCLUSION
be triggered, unless an individual is in a really tight situation. The full benefits of the Code will be obtained in a situation
where all the stakeholders collectively contribute in creating an
EVENTS THAT WOULD TRIGGER FILING OF ecosystem conducive to an effective, fair and expedient
INDIVIDUAL BANKRUPTCY implementation of the Code. For the common man, it is clearly
An individual can file an application for bankruptcy in the a win-win situation. CS

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 The Insolvency and Bankruptcy Code, 2016
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BACKGROUND Liability Partnership firms and individuals

(other than financial firms). The Government

A
t present, there are multiple is proposing a separate framework for
overlapping laws and adjudicating bankruptcy of failing banks and financial
forums dealing with financial failure sector entities.
and insolvency of companies and individuals
in India. The current legal and institutional One of the fundamental features of the
framework does not help lenders in effective Code is that it allows creditors to assess the
and timely recovery or restructuring of viability of a debtor as a business decision,
defaulted assets and causes undue strain and agree upon a plan for its revival or a
G Sriram, ACS on the Indian credit system. Recognizing speedy liquidation. The Code creates a new
that reforms in the bankruptcy and insolvency institutional framework, consisting of a
Practising Company Secretary regime are critical for improving the business regulator, insolvency professionals,
Chennai environment and alleviating distressed information utilities and adjudicatory
sriramvishnu@[Link]
credit markets, the Government introduced mechanisms, that will facilitate the formal
the Insolvency and Bankruptcy Code Bill and time bound insolvency resolution
in November 2015, drafted by a specially process and liquidation.
constituted ‘Bankruptcy Law Reforms
Committee’ (BLRC) under the Ministry of The Insolvency and Bankruptcy Code (the
Finance. Code) addresses several problems that

The Insolvency and Bankruptcy Code ,2016 is an Act to

consolidate and amend the laws relating to
reorganization and insolvency resolution of corporate
persons, partnership firms and individuals in a time
bound manner for maximization of value of assets of
such persons, to promote entrepreneurship, availability
of credit and balance the interests of all the
stakeholders including alteration in the order of priority
of payment of Government dues and to establish an
Insolvency and Bankruptcy Board of India, and for
matters connected therewith or incidental thereto.

After a public consultation process and plague the current system. It consolidates
recommendations from a joint committee of multiplicity of laws, provides a time bound
Parliament, both Houses of Parliament process for resolution of insolvency, makes
have now passed the Insolvency and information available for rational decision-
Bankruptcy Code, 2016 (Code). While the making, shortens and clarifies the appeal
legislation of the Code is a historical process and manner of distribution of
development for economic reforms in India, recovery proceeds. The Code outlines a
its effect will be seen in due course when 2-stage process with the first stage being
the institutional infrastructure and the insolvency resolution process and the
implementing rules as envisaged under the second stage being liquidation process
Code are formed. triggered upon failure of resolution.

THE CODE An insolvency resolution process can be

The Code offers a uniform, comprehensive initiated by either a creditor, or by the
insolvency legislation encompassing all debtor, upon an event of default. A revival
companies, partnerships firms, Limited plan is to be proposed and agreed by the

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The National Company Law and registration of the above agencies.

Tribunal (NCLT) is the adjudicating INSTITUTIONAL INFRASTRUCTURE

authority over a company’s (a) The Insolvency Regulator
The Code provides for the constitution of a new insolvency
insolvency and liquidation process. regulator i.e., the Insolvency and Bankruptcy Board of India

It will be an overarching body (Board). Its role includes: (i) overseeing the functioning of
insolvency intermediaries i.e., insolvency professionals,
for resolving insolvency. National insolvency professional agencies and information utilities; and
(ii) regulating the insolvency process.
Company Law Appellate Tribunal
(NCLAT) will have appellate (b) Insolvency Resolution Professionals
The Code provides for insolvency professionals as
jurisdiction over NCLT. The intermediaries who would play a key role in the efficient
decisions of the NCLAT can only be working of the bankruptcy process. The Code contemplates
insolvency professionals as a class of regulated but private
appealed to the Supreme Court. professionals having minimum standards of professional and
ethical conduct.
parties within 180 days from the admission of the application. In the resolution process, the insolvency professional verifies
Making this process time bound is very essential as the value of the claims of the creditors, constitutes a creditors committee,
the assets can erode substantially with the passage of time. In runs the debtor’s business during the moratorium period and
event of disagreement or if a decision is not taken within the helps the creditors in reaching a consensus for a revival plan.
stipulated time frame the applicant automatically moves to the next In liquidation, the insolvency professional acts as a liquidator
stage of Insolvency Process. and bankruptcy trustee.

The liquidation process will be led by a regulated insolvency (c) Information Utilities
professional, the liquidator. The liquidator will form an estate of the A notable feature of the Code is the creation of information
assets of the company and hold the estate as a fiduciary for the utilities to collect, collate, authenticate and disseminate
benefit of all the creditors. The secured creditors may relinquish financial information of debtors in centralised electronic
their security interest in the estate, or realise its security post databases. The Code requires creditors to provide financial
verification from the liquidator. The recoveries that are obtained information of debtors to multiple utilities on an ongoing basis.
are paid out to the various claimants through a well-defined Such information would be available to creditors, resolution
waterfall process. The cost of insolvency will be paid first followed professionals, liquidators and other stakeholders in insolvency
by workmen’s dues and secured creditors on pari-pasu basis. Next and bankruptcy proceedings. The purpose of this is to remove
in line will be unsecured creditors followed by government dues. information asymmetry and dependency on the debtor’s
management for critical information that is needed to swiftly
The Code provides for setting up of the following institutions to resolve insolvency.
ensure effective governance and implementation of the provisions
of the law. (d) Adjudicatory authorities
The adjudicating authority for corporate insolvency and
The National Company Law Tribunal (NCLT) is the adjudicating liquidation is the NCLT. Appeals from NCLT orders lie to the
authority over a company’s insolvency and liquidation process. It National Company Law Appellate Tribunal and thereafter to the
will be an overarching body for resolving insolvency. National Supreme Court of India. For individuals and other persons, the
Company Law Appellate Tribunal (NCLAT) will have appellate adjudicating authority is the DRT, appeals lie to the Debt
jurisdiction over NCLT. The decisions of the NCLAT can only be Recovery Appellate Tribunal and thereafter to the Supreme
appealed to the Supreme Court. Court.
Information Utilities (IU) will serve as a repository of financial In keeping with the broad philosophy that insolvency resolution
information of a company. The financial and operational creditors must be commercially and professionally driven (rather than
will have an obligation to submit the relevant information to the IUs. court driven), the role of adjudicating authorities is limited to
The information maintained in these IUs will be available to all ensuring due process rather than adjudicating on the merits of
relevant parties on the payment of a fee. the insolvency resolution.
Insolvency Professionals (IP) will oversee the insolvency and
liquidation process. Such professionals are envisaged to be INSOLVENCY AND BANKRUPTCY BOARD
empowered to run the process effectively. OF INDIA
Insolvency and Bankruptcy Board of India (IBBI) – IBBI will be the Section 188 dealing with Insolvency and Bankruptcy Board reads
regulatory body responsible for framing the rules, code of conduct thus:

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The scope for professional (3) The appointment of the Chairperson and the members of the
Board other than the appointment of an ex officio member
development of Company under this section shall be made after obtaining the
Secretaries under the Insolvency recommendation of a selection committee consisting of—
(a) Cabinet Secretary—Chairperson;
and Bankruptcy Code is wide. (b) Secretary to the Government of India to be nominated by
the Central Government—Member;
Company Secretaries in whole time (c) Chairperson of the Insolvency and Bankruptcy Board of
practice can act as an Insolvency India (in case of selection of members of the Board)—
Member;
Professional or resolution (d) Three experts of repute from the field of finance, law,
professional after qualifying in management, insolvency and related subjects, to be
nominated by the Central Government—Members.
the required Examination and (4) The term of office of the Chairperson and members (other than
enrolling as members of the ex officio members) shall be five years or till they attain the age
of sixty-five years, whichever is earlier, and they shall be
Insolvency Professional Agency. eligible for reappointment.
(5) The salaries and allowances payable to, and other terms and
conditions of service of, the Chairperson and members (other
(1) With effect from such date as the Central Government may, by than the ex officio members) shall be such as may be
notification, appoint, there shall be established, for the purposes prescribed. (Section 189).
of this Code, a Board by the name of the Insolvency and
Bankruptcy Board of India. Removal of member from office
(2) The Board shall be a body corporate by the name aforesaid, The Central Government may remove a member from office if he
having perpetual succession and a common seal, with power, —
subject to the provisions of this Code, to acquire, hold and (a) is an undischarged bankrupt
dispose of property, both movable and immovable, and to (b) has become physically or mentally incapable of acting as a
contract, and shall, by the said name, sue or be sued. member;
(3) The head office of the Board shall be at such place in the (c) has been convicted of an offence, which in the opinion of
National Capital Region, as the Central Government may, by the Central Government involves moral turpitude;
notification, specify. (d) has, so abused his position as to render his continuation in
Explanation.— office detrimental to the public interest:
For the purposes of this section, the expression “National Provided that no member shall be removed under clause (d)
Capital Region” shall have the same meaning as assigned to it unless he has been given a reasonable opportunity of being heard
in clause (f) of section 2 of the National Capital Region in the matter.(sec-190)
Planning Board Act, 1985.
(4) The Board may establish offices at other places in India. (Sec- Powers of Chairperson of the Board
188) The Chairperson shall have powers of general superintendence
and direction of the affairs of the Board and may also exercise
Constitution of Board such other powers as may be delegated to him by the Board.
The Central Government shall appoint the following members in
the Board which consists of Meetings of Board
(a) a Chairperson; 1) The Board shall meet at such times and places, and observe
(b) three members from amongst the officers of the Central such rules of procedure in regard to the transaction of business
Government not below the rank of Joint Secretary or at its meetings (including quorum at such meetings) as may be
equivalent, one each to represent the Ministry of Finance, determined by regulations.
the Ministry of Corporate Affairs and Ministry of Law, ex (2) The Chairperson, or if, for any reason, the Chairperson is
officio; unable to attend any meeting of the Board, any other member
(c) one member to be nominated by the Reserve Bank of chosen by the members present at the meeting shall preside at
India, ex officio; the meeting.
(d) five other members to be nominated by the Central (3) All questions which come up before any meeting of the Board
Government, of whom at least three shall be the whole- shall be decided by a majority votes of the members present
time members. and voting, and, in the event of an equality of votes, the
(2) The Chairperson and the other members shall be persons of Chairperson, or in his absence, the person presiding, shall
ability, integrity and standing, who have shown capacity in have a second or casting vote.(sec-192).
dealing with problems relating to insolvency or bankruptcy and
have special knowledge and experience in the field of law, Member not to participate in meetings in certain Cases
finance, economics, accountancy or administration. Any member, who is a director of a company and who as such

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director has any direct or indirect pecuniary interest in any matter
coming up for consideration at a meeting of the Board, shall, as
soon as possible after relevant circumstances have come to his
knowledge, disclose the nature of his interest at such meeting and
such disclosure shall be recorded in the proceedings of the Board,
and the member shall not take any part in any deliberation or
decision of the Board with respect to that matter. (Sec-193)

Vacancies etc, not to invalidate proceedings

(1) No act or proceeding of the Board shall be invalid merely by
reason of—
(a) any vacancy in, or any defect in the constitution of, the
Board; or
(b) any defect in the appointment of a person acting as a
member of the Board; or
(c) any irregularity in the procedure of the Board not affecting
the merits of the Case.
(2) The Board may appoint such other officers and employees as
it considers necessary for the efficient discharge of its functions
in such manner as may be specified.
(3) The salaries and allowances payable to, and other terms and
conditions of service of, officers and employees of the Board
appointed under sub-section (2) shall be such as may be (i) publish such information, data, research studies and other
specified by regulations.(Sec-194) information as may be specified by regulations;
(j) specify by regulations the manner of collecting and storing
POWERS AND FUNCTION OF BOARD data by the information utilities and for providing access to
(1) The Board shall, subject to the general direction of the such data;
Central Government perform all or any of the following (k) collect and maintain records relating to insolvency and
functions namely:— bankruptcy cases and disseminate information relating to
(a) register insolvency professional agencies, insolvency such cases;
professionals and information utilities and renew, withdraw, (l) constitute such committees as may be required including in
suspend or cancel such registrations; particular the committees laid down in section 197;
(b) specify the minimum eligibility requirements for registration (m) promote transparency and best practices in its governance;
of insolvency professional agencies, insolvency (n) maintain websites and such other universally accessible
professionals and information utilities; repositories of electronic information as may be necessary;
(c) levy fee or other charges for the registration of insolvency (o) enter into memorandum of understanding with any other
professional agencies, insolvency professionals and statutory authorities;
information utilities; (p) issue necessary guidelines to the insolvency professional
(d) specify by regulations standards for the functioning of agencies, insolvency professionals and information utilities;
insolvency professional agencies, insolvency professionals (q) specify mechanism for redressal of grievances against
and information utilities; insolvency professionals, insolvency professional agencies
(e) lay down by regulations the minimum curriculum for the and information utilities and pass orders relating to
examination of the insolvency professionals for their complaints filed against the aforesaid for compliance of the
enrolment as members of the insolvency professional provisions of this Code and the regulations issued
agencies; hereunder;
(f) carry out inspections and investigations on insolvency (r) conduct periodic study, research and audit the functioning
professional agencies, insolvency professionals and and performance of to the insolvency professional agencies,
information utilities and pass such orders as may be insolvency professionals and information utilities at such
required for compliance of the provisions of this Code and intervals as may be specified by the Board;
the regulations issued hereunder; (s) specify mechanisms for issuing regulations, including the
(g) monitor the performance of insolvency professional conduct of public consultation processes before notification
agencies, insolvency professionals and information utilities of any regulations;
and pass any directions as may be required for compliance (t) make regulations and guidelines on matters relating to
of the provisions of this Code and the regulations issued insolvency and bankruptcy as may be required under this
hereunder; Code, including mechanism for time bound disposal of the
(h) call for any information and records from the insolvency assets of the corporate debtor or debtor; and
professional agencies, insolvency professionals and (u) perform such other functions as may be prescribed.
information utilities;

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insolvency professional agency;

(m) the manner of conducting examination for enrolment of
insolvency professionals;
(n) the manner of monitoring and reviewing the working of
insolvency Professional who are members;
(o) The duties and other activities to be performed by members;
(p) The manner of conducting disciplinary proceedings against
its members and imposing penalties;
(q) The manner of utilising the amount received as penalty
imposed against any insolvency professional.

(3) Notwithstanding anything contained in any other law for the

time being in force, while exercising the powers under this
Code, the Board shall have the same powers as are vested in
a civil court under the Code of Civil Procedure, 1908, while
trying a suit, in respect of the following matters, namely:—
(i) The discovery and production of books of account and other
documents, at such place and such time as may be
specified by the Board;
(ii) Summoning and enforcing the attendance of persons and
examining them on oath;
(iii) Inspection of any books, registers and other documents of
any person at any place;
(2) The Board may make model bye-laws to be to adopted by (iv) Issuing of commissions for the examination of witnesses or
insolvency professional agencies which may provide for— documents. (Sec-196).
(a) the minimum standards of professional competence of the
members of insolvency professional agencies; Constitution of committees
(b) the standards for professional and ethical conduct of the The Board may, for the efficient discharge of its functions, may
members of insolvency professional agencies; constitute advisory and executive committees or such other
(c) requirements for enrolment of persons as members of committees, as it may deem fit, consisting of a Chairperson and
insolvency professional agencies which shall be non- such other members as may be specified by regulations.
discriminatory; (Section197)
Explanation.—For the purposes of this clause, the term
“non-discriminatory” Condonation of delay.
means lack of discrimination on the grounds of religion, Notwithstanding anything contained in this Code, where the Board
caste, gender or Place of birth and such other grounds as does not perform any act within the period specified under this
may be specified; Code, the relevant Adjudicating Authority may, for reasons to be
(d) the manner of granting membership; recorded in writing, condone the delay. (Sec-198)
(e) setting up of a governing board for internal governance and
management of insolvency professional agency in Scope for Practicing Company Secretaries
accordance with the regulations specified by the Board; The scope for professional development of Company Secretaries
(f) the information required to be submitted by members under the Insolvency and Bankruptcy Code is wide. Company
including the form and the time for submitting such Secretaries in whole time practice can act as an Insolvency
information; Professional or resolution professional after qualifying in the
(g) the specific classes of persons to whom services shall be required Examination and enrolling as members of the Insolvency
provided at concessional rates or for no remuneration by Professional Agency.
members;
(h) the grounds on which penalties may be levied upon the CONCLUSION
members of insolvency professional agencies and the The Code promises to bring about far-reaching reforms with a
manner thereof; thrust on creditor driven insolvency resolution. It aims at early
(i) a fair and transparent mechanism for redressal of grievances identification of financial failure and maximising the asset value of
against the members of insolvency professional agencies; insolvent firms. The Code also has provisions to address cross
(j) the grounds under which the insolvency professionals may border insolvency through bilateral agreements and reciprocal
be expelled from the membership of insolvency professional arrangements with other countries.
agencies; The unified regime envisages a structured and time-bound process
(k) the quantum of fee and the manner of collecting fee for for insolvency resolution and liquidation, which should significantly
inducting persons as its members; improve debt recovery rates and revitalise the ailing Indian
(l) the procedure for enrolment of persons as members of corporate bond markets. CS

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T
he Insolvency and Bankruptcy person who is unable to are such that he is
Code 2016 passed in May 2016 pay his debts as they entitled, on his
by both the Houses of Parliament fall due, or in the usual voluntary application,
attempts a legislative answer to the above course of trade and to take the benefit of
question. The Code consolidates and business. the bankruptcy laws.
amends the laws relating to reorganization The term is used in a
and insolvency resolution of corporate looser sense as
persons, partnership firms and individuals synonymous with
in a time bound manner for maximisation ‘insolvency’.
of value of assets of such persons, to
Dr. Mahesh Thakar, FCS promote entrepreneurship, availability of It appears that in the new Act
credit and balance the interests of all the (Code) the word ‘insolvency’ is used
Advocate, Vadodara stakeholders including alteration in the for corporates and bankruptcy appears
dr_mkthakar@[Link]
order of priority of payment of Government to have been used for ‘individuals’ and
dues and to establish an Insolvency and ‘partnership firms’.
Bankruptcy Board of India, and for matters The law that existed prior to
connected therewith or incidental thereto. the enactment of 2016 Code had not

The major problem with India hitherto in the field of

corporate and individual insolvency and bankruptcy,
has been that there were too many obsolet, conflicting
and non-effective laws which made the procedure
cumbersome and tedious. The new law in the form
of Insolvency and Bankruptcy Code is part of the
larger economic reform and seeks to expedite
Jyotmala Thakar, ACS insolvency proceedings.
Advocate, Vadodara
jyotmala@[Link] WHETHER BANKRUPTCY defined either the term ‘insolvency’ or
AND INSOLVENCY ARE ‘bankruptcy’. There were of course
exhaustive Sections laying down what
SYNONYMOUS? constitutes acts of insolvency.
The terms ‘insolvency’ and ‘bankruptcy’ HOW INSOLVENCY
arise from one common feature namely
inability to pay the debts. Black’s Law
ADVERSELY AFFECTS
Dictionary defines the terms as under: THE ECONOMY?
Insolvency Bankruptcy The debts and transactions contracted in
ordinary course of business need to be
The condition of a The state or
discharged in a time bound manner and
person who is insolvent; condition of one who
this is essential lifeline of all business
inability to pay one’s is a bankrupt;
activities. Thus if a manufacturer supplies
debts; lack of means to amenability to the
goods on credit and his dues are not
pay one’s debts. Such bankruptcy laws; the
realised, there will be a cascading effect
a relative condition of a condition of one who
on various parties. The entities which
man’s assets and has committed an
supplied materials to him may not receive
liabilities that the act of bankruptcy,
their payments. The statutory dues may
former, if all made and is liable to be
remain unpaid due to lack of liquidity. The
immediately available, proceeded against
employees may not get their salaries.
would not be sufficient by his creditors
Investors and depositors also suffer.
to discharge the latter. therefor, or of one
Hence, identifying and dealing with
Or the condition of a whose circumstances
such acts at inception stage is the best

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 INSOLVENCY AND BANKRUPTCY CODE, 2016
ARTICLE

alternative to avoid larger financial calamities. cases in 2008 and that was the year when global economic
crisis occurred.
In that sense, the Insolvency law has twofold purpose to serve.
One is to give relief to the debtor from harassment of his
creditors whose claims he is unable to meet and the other is to
INDIA , A CLASSIC CASE OF TOO MANY LAWS
prevent a scramble among the creditors to get at the assets of WITH TOO LITTLE IMPACT
the debtor promoting fraud and collusion between the creditor In India, the traditional laws had their applicability based on who
and debtor and provide a machinery by which all creditors are is the defaulter and what is his geographical location. Thus the
equitably satisfied1. position can be summed up as under:

The present unfortunate scenario in India is that the Entity making the default
unscrupulous defaulter is found using protection of insolvency
laws as a “sword” while the legislature intended it to be only
a “shield” to the extent deserved. A practical experience from
interactions with hundreds of borrowers2 in banking system Individual Corporate
shows that the wilful defaulters even go to the extent of
challenging the creditor “do whatever you can... I will apply for
registration under Sick Industrial Companies Act (SICA)”. The
balance sheets are fabricated and tailor made to get the tag In Presidency town Elsewhere Companies Cooperative
of being sick and seeking protection from legal proceedings. (High Court) (Civil Court) societies
One and all would agree that this grim reality tarnishes the Statutory
image of India when it is emerging as a global leader and corporations
enthusiastically canvassing “Make in India” campaign and
attracting global investment. Other Sick Industrial

INSOLVENCY HITS ALL ADVANCED companies companies

ECONOMIES AS WELL It needs to be noted that for each of the aforesaid law, there
All is not well with advanced economies of the world in the field were different forums such as Civil Court, High Court (Company
of financial defaults. In a country like China, the penal laws Court), BIFR, now National Company Law Tribunal (NCLT) and
also may get straightway attracted but in countries following so on. Each of them used to function under different statutes
democracy and rule of law, the due procedure has to be and disputes often arose as to who exercises jurisdiction in
followed. the matter. Thus in winding up proceedings the priority may be
given to workers dues but the dues may be a subject matter
A case study of few bankruptcy cases in USA spanned over of dispute before Industrial/ Labour Court. The assets of the
last 30 years reveals the following position: entity under winding up/ insolvency may be already attached by
secured creditor. Inter se among secured creditors, there may
BANKRUPTCIES IN USA be disputes about priority between the statutory dues and the
Year Name of corporate Pre-bankruptcy dues of secured creditor. Once the matter gets entangled in this
valuation of web of laws, the pursuit for justice not only becomes endless
but at times even meaningless because the Liquidators Bill for
assets
preservation and Protection of Securities is much more than
(US $ in bil-
what the assets can realize.
lions)
1987 Texaco 34.94 A GLANCE AT THE POSITION IN
1988 Financial Corporation of America 33.86 FOREIGN COUNTRIES
2001 Enron Corporation 65.50 Since 1909, when Presidency Towns Insolvency Act was
2002 WorldCom, Inc. 103.91 enacted and later in 1920 when Provincial Insolvency Act was
enacted, India continued with the same laws for almost 100
2005 Delta Airlines 21.80
years. The world has changed a lot in the meanwhile.
2008 Lehman Brothers Holdings, Inc. 691.00 (i) USA : The Constitution of United States authorizes
2008 Washington Mutual 328.00 Congress to enact uniform laws on this subject(Bankruptcy)
2009 Chrysler 39.30 throughout all the States3. The power has been exercised
2009 General Motors 82.29 quite frequently during last 216 years. The most significant
change came in 1978 and thereafter in 2005 through the
One may recall that US economy had its largest bankruptcy Bankruptcy Abuse Prevention and Consumer protection
1
Act of 2005. The law there also defines concept of
AIR 1956 Mad 157
2
The author has worked in legal and recovery Depts of banks/finance companies. ‘Bankruptcy Crimes’, tax implications upon bankruptcy
3
Article 1, Sec 8, Clause 4. and thereby integrates the bankruptcy law with other laws.

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the Insolvency law has twofold It is open for directors of the company to take a proposal
to the company or its creditors for voluntary arrangement
purpose to serve. One is to and the proposal shall provide for appointment of trustee
give relief to the debtor from for its implementation. The proposal may also be submitted
to the court and the court can appoint trustee.
harassment of his creditors whose
claims he is unable to meet and (iii) Australia :Like India, in Australia earlier there were separate
legislations dealing with individual insolvency and corporate
the other is to prevent a scramble insolvency. Harmer Report (1998) recommended for having
among the creditors to get at the common legislation for both. Separate legislations still
continue to govern the aspect of insolvency.
assets of the debtor promoting
fraud and collusion between the The individual’s insolvency is mainly dealt with in
Bankruptcy Act 1966, and Bankruptcy Regulation 1996.
creditor and debtor and provide a The proceedings are conducted in Federal Magistrate Court
dealing with Bankruptcy Cases.
machinery by which all creditors
are equitably satisfied. Corporate insolvency has been dealt with under Corporations
Act 2001 and the connected regulations.

In US bankruptcy petition can be filed by Individual as After leading cases like Cook s. Banson and Alan Bonds
also corporates. Petitions are filed in District Level Courts Bankruptcy Case, the vigor of law have been tightened over
known as US Bankruptcy Court. The law also deals with bankrupts and greater investigative and recovery power has
bankruptcy proceedings in foreign forums. Under Chapter been conferred on trustees in bankruptcy. The amendments
9, the Courts consider how the foreign jurisdiction treats in 1991 and later in 1996 were aimed at dealing with ‘High
creditors and whether US creditors are protected against Flyers’ who were abusing the process and technicalities of
prejudice to the proceedings of their claims. There are bankruptcy law4.
separate protective provisions for adjustment of debts of
family farmer, fishermen or individual with regular annual The Company Law Review Act 1998 did not make many
income. Separate provisions for debts of a municipality also changes on the issues relating to corporate insolvency. The
have been made. debtor’s petition was to be presented by the debtors to the
official receiver.
(ii) United Kingdom :In UK, the Insolvency Act 1986 deals
with the cases of individuals and companies. The Act deals (iv) China : China has been the world leader in economic
with at length on receivers and their powers, administrative growth during last thirty years and hence their legislation
orders, voluntary arrangement by companies, members deserves closer attention. In China, Ministry of Commerce
voluntary winding up, creditors voluntary winding up, is the regulator. The cases are dealt by Peoples Courts.
winding up by the court and dissolution of companies, The judge appoints an administrator and a moratorium
liquidators and their powers, winding up of unregistered applies preventing further civil law recovery action by any
companies. It covers registered friendly societies. creditor. The Civil Procedure Law 1982 in China has a
specific chapter 19 for dealing with bankruptcy procedure
The procedure involves filing of bankruptcy petitions, for legal person enterprises. There is another law called
and orders for bankruptcy being passed. Provisions for People’s Republic of China on enterprise bankruptcy (for
protection of bankrupt’s estate and investigation of his trial implementation 1996). It applies only to State owned
affairs also have been made. Separate provisions for enterprises. Prior approval of the relevant department is
trustees in bankruptcy and administration by trustee a condition precedent before bankruptcy proceedings in
have been made. A separate Chapter deals with effect of China against such enterprise.
bankruptcy on certain rights and transactions and powers
of court in bankruptcy. Bankruptcy offences have been Another draft bankruptcy law provides that a person can be
separately defined. Role of new professionals called deemed to have committed act of insolvency if he ceases
‘insolvency practitioners’ has been recognized and their to make payment and that will constitute his inability to pay
qualifications have been laid down. the debts. The new proposed law will separately deal with
insolvency of sole proprietorships, partnerships, enterprise
Provisions against debt avoidance and preferential debts legal persons and other economic organizations constituted
laying down priority to be given among creditors/ claimants under the statute.
have been separately provided for company and individual
4
under insolvency. In India there is almost the same position in several cases of high debt defaulter entities.

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(v) Singapore : Singapore is the world business hub. The CATEGORY WISE PENDING CASES
bankruptcy related proceedings are regulated by insolvency Senior citizen 628043
and public trustees office. The individual bankruptcy was Filed by Women 1197900
earlier governed by Chapter 20 of Bankruptcy Act and
Corporate insolvency was dealt with by Chapter 50 of the Total Judge/Court 16,618
Companies Act. Per judge pendency of Civil Cases 454

Singapore adopted a pro-active approach to the aspect of Per judge pendency after including 1,52,46,759 criminal cases
insolvency and the new Bankruptcy Act 1995 emphasizes (total 2,27,97,189, as per available data) comes to 1372.
on reducing the instances where parties resort to
bankruptcy proceedings and encourage the settlement of In India, so far there are no separate and exclusive courts
claims through voluntary arrangements. dealing with insolvency. World Bank in 2015 compiled the
data of the time involved in resolving insolvency disputes. The
(vi) Canada : The proceedings are regulated by office of time was to be considered from the date of filing of insolvency
the superintendent of Bankruptcy. Various stages of petition/ suit until the resolution of dispute.
bankruptcy appear to be dealt with by separate legislations.
The position was on expected lines and India was falling far
The statutory framework for liquidation of the assets of an behind.
insolvent, whether individual, partnership or corporate and Country Time involved in deciding insolvency
its distribution in fair and orderly way is dealt with under petition
Bankruptcy and Insolvency Act (BIA). The trustee appointed
Singapore 8 months
under the Act takes charge of the assets, sales them and
distributes the proceeds. The bankruptcy can be avoided by Malaysia 1 year
negotiation arrangement with their creditors for compromise United Kingdom 1 year
of the debts or reorganization of financial affairs. United States 1.5 years
India 4.3 years to 6 years
An insolvent company can seek a court for stay in creditors
action while it negotiate an arrangement with them for re- India at present ranks 130th in World Bank’s ease of doing
schedulement or compromise under Companies’ Creditors business index out of total 189 countries.
Arrangement Act (CCAA.)
The data may be same in context of the population, the litigation
For liquidation of major financial institutions, including explosion, the judge strength and various factors but India
banks, insurance companies, trust and loan companies has to be concerned that capital is precious for establishing
who cannot be liquidated under BIA separate law called and running any business and it should not be wasted away
Winding Up and Restructuring Act (WURA) is applicable. on weak, unviable or fraudulent businesses. It hampers the
economy and benefits only the person who swindles away the
INSOLVENCY PROCEEDINGS IN INDIA – money by defying the law.
DELAYS AND BACKLOGS
Till recently individual insolvency proceedings in India were In India, another recent phenomenon is of mass insolvency
heard and decided by ordinary civil courts. The civil courts deal petitions such as petitions filed in various States by organized
with all type of civil suits including money disputes, property groups like farmers. In such cases Govt. after Govt. have come
disputes, family disputes and so on. The civil courts have huge out with loan waiver schemes and made payment through
backlog of pending cases as may be appreciated from the budgetary provisions to the creditors mainly the nationalized
following official data: banks. Many experts on economy are of the view that it is neither
a healthy practice nor a long term solution to the problem.
Summary Report of Civil Cases in India as on 24.8.2016
SALIENT FEATURES OF THE NEW LAW
Cases Disposed In Last Month 212051
All business entities come under common umbrella for
Cases filed in last month 208849
bankruptcy proceedings.
Cases disposed in last month (more than 10 8678
years old) All companies whether covered by Companies Act or any
PENDING CASES Special Act, Limited Liability Partnership Act 2008, other bodies
Cases pending over 10 years 681378 incorporated under laws for the time being in force, partnership
Cases pending (between 5 to 10 years) 1189000 firms and individuals have been included and are governed by
the new law.
Cases pending (between 2 to 5 years) 2242358
Cases pending less than 2 years 3437698 DEFINITION OF CREDITOR MADE WIDE
Total pending Cases 7550430 Under the Provincial Insolvency Act 1920, creditor included a

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judgment debtor. Under the new revised law Section 3(10) and good, professional and ethical conduct while protecting the interest
(11), ‘Creditor means any person to whom a debt is owed and of their clients. No person shall carry on business as insolvency
includes a financial creditor, an operational creditor, a secured professional except when he has obtained a certificate of practice.
creditor, an unsecured creditor and a decree holder.’
CONSTITUTION OF INSOLVENCY AND
‘Debt means a liability or obligation in respect of a claim which is BANKRUPTCY BOARD OF INDIA
due from any person and includes a financial debt and operational For the purposes of the Code, the above board will be established.
debt.’ It is a body corporate. The chair person of the Board will be a
person who held the rank of cabinet secretary and other members
SEPARATE PARTS FOR CORPORATE will be of secretary level. Three experts of repute also will be
INSOLVENCY AND INDIVIDUAL BANKRUPTCY appointed and the Board mainly performs functions relating to
Part II of the new Law with 7 Chapters and 74 sections deals registration of insolvency professional agencies, their bye laws,
with corporates. In Part III, 4 chapters and 66 sections have been stipulating minimum standards of competence.
provided for individual and partnership bankruptcy.
POSITION REGARDING PRIORITY OF PAYMENT
CIVIL COURTS JURISDICTION BARRED OF DEBTS
-MATTERS TO BE DEALT WITH BY Under the Provincial Insolvency Act, priority was given only to the
debts due to govt. or local authority and salary/ wages of clerk/
ADJUDICATING AUTHORITIES servant not exceeding Rs. 20 for services rendered during last
Sections 63 and 180 of the new Act bars the jurisdiction of Civil four months before presentation of petition.
Court and the jurisdiction is exclusively vested in Adjudicating
Authority. The provision of Rs. 20 looks laughable in present scenario.

The adjudicating authority shall be as under: The new law makes an overriding provision to give priority under
For individuals and For Corporate persons (S. 60) Sec. 178 and also settles the controversy as to between secured
partnerships (S.179) creditor and the State dues- who gets the priority. The order of
priority has been stipulated as under:
Debt Recovery National Company Law
(a) firstly, the costs and expenses incurred by the bankruptcy
Tribunal (DRT) Tribunal(NCLT), Dispute of Corporate
debtors and personal guarantors also trustee for the bankruptcy process in full.
included. (b) secondly the workmen’s dues for the period of twenty-four
months preceding the bankruptcy commencement date, and
It appears that proper manpower planning and expense allocation debts owed to secured creditors.
will have to be made. The NCLT is yet to be effectively made (c) thirdly, wages and any unpaid dues owed to employees,
functional. As far as the DRTs are concerned, they exist since other than workmen, of the bankrupt for the period of twelve
last more than 20 years. So far they were dealing with recovery months preceding the bankruptcy commencement date.
applications of the banks above Rs. 10 lacs, connected counter (d) fourthly, any amount due to the Central Government and the
claims and securitization appeals. The added responsibility will State Government.
increase their workload manifold. The present pendency position (e) lastly, all other debts and dues owed by the bankrupt.
in DRTs is as under:
Unless the first category is paid in full, the second and subsequent
Pendency in DRTS and DRATS (for may 2016) category does not get any amount if assets of the bankrupt are
insufficient. Claimants in the same category will be taking it pari
Original applications 64663 passu.
Securitization Application 22230
Unsecured creditors shall rank equally. Surplus remaining shall
DRAT appeals 3096 be applied in paying interest on the debt.
DRAT Miscellaneous Appeals (only for Delhi 397
& Mumbai) In respect of corporates Sec. 53 deals with distribution of assets
and is on identical line.
The advantage will be that the affairs of the debtors including
the debtors of the bank will come under a common scanner Section 52 gives an option to the secured creditor whether he
and adjudicator, as far as individuals/ firms are concerned. For wants to realize security interest by his own action or relinquish
corporates and sick industrial companies, it will be NCLT. security interest to the liquidation estate and receive proceeds
from the sale of assets by the liquidator as available under
INSOLVENCY PROFESSIONAL AGENCY Section 53.
A new and exclusive area of practice has been carved out for the
professionals to provide services needed by debtors, creditors and APPELLATE MACHINERY
other persons as may be specified. Section 200(C) emphasizes The Appellate Machinery under the new law operates as under:

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ARTICLE

corporate debtor.
Type of First Appeal Second Appeal The order shall have effect from the date of order upto completion
debtor of corporate insolvency resolution process.
Company National Company Supreme Court (on a FRESH START PROCESS OPTION IS AVAILABLE
Law Appellate Tribunal
(Sec. 61)
question of law) (Sec.
62) TO SMALL DEBTORS
A small debtor if he fulfills the following conditions can move
Individual Debt Recovery Ap- Supreme Court (on a application to the adjudicating authority under Sec. 80. The criteria
& partner- pellate Tribunal (Sec. question of law) (Sec.
laid down is as follows:
ships 181) 182)
Criteria Limit (not exceeding)
In both cases, the tribunals that hear the appeals have the
persons qualified to be High Court judges. Later, the Second Gross annual income of the debtor Rs. 60,000/-
Appeal on question of law goes to the Supreme Court. Perversity Aggregate value of assets of the Rs. 20,000/-
of finding constitutes a substantial question of law5. There is no debtor
re-appreciation of evidence but if the lower forum rejected an
evidence on flimsy grounds, it constitutes a substantial question Aggregate value of qualifying Rs. 35,000/-
of law. Findings arrived at by considering irrelevant fact or by non- debts
consideration of relevant fact also gives rise to substantial question
of law6. The substantial question of law has to be formulated before The applicant should not be an undischarged insolvent. He should
deciding the Appeal. not have a dwelling unit encumbered or otherwise. No previous
fresh start order should have been made in relation to him in
FAST TRACK PROCEEDINGS preceding 12 months before submitting application.
If the assets and income of a corporate debtor is below a level In his application, he has to submit list of all the debts owed by him,
notified by Central Govt. or it has such class of creditors or such interest payable on such debts, list of securities held in respect of
amount of debt as maybe so notified or involves notified category debt, personal details as maybe prescribed, particulars of legal
of corporate persons, the matter can be tried under corporate
proceedings commenced against applicant.
insolvency resolution process on fast track basis. The advantage
of this provision is the time limit which requires that the process
Upon filing of the application, an interim moratorium period
shall be completed within a period of 90 days from the insolvency
commencement date. The application under this procedure can commences and no legal action or proceedings can be initiated
be filed by any creditor or a corporate debtor along with proof of against him. There appears to be no clarity in respect of action u/s.
existence of default as evidenced by records available with an 138 of Negotiable Instruments Act regarding bouncing of cheque
information utility or on the basis of such other information as maybe which is a criminal offence.
specified by the board.
RESTRICTIONS ON BANKRUPT INDIVIDUALS
MORATORIUM A bankrupt from the bankruptcy commencement date gets
In case of default by a corporate debtor, the creditor or the debtor subjected to several restrictions and incapacities. The
itself is entitled to initiate corporate insolvency resolution process provisions are of far-reaching consequences under section 141:
by filing an application under section 7 before the adjudicating Restriction Implications
authority. The authority has to complete insolvency resolution
Directorship He cannot act as a director of company nor
process within a period of 180 days.
can he directly or indirectly take part in or
The authority is empowered to declare moratorium for prohibiting be concerned with promotion, formation or
all of the following: management of the company.
(a) the institution of suits or continuation of pending suits or Creation of Without the previous sanction of bankruptcy
proceedings against the corporate debtor including execution charge & fur- trustee, he shall be prohibited from creating any
of any judgment, decree or order in any court of law, tribunal, ther debts charge on his estate or taking any further debt.
arbitration panel or other authority; Overseas He is not permitted to travel overseas with-
(b) transferring, encumbering, alienating or disposing of by the
travels out the permission of adjudicating authority.
corporate debtor any of its assets or any legal right or beneficial
interest therein. Obligation to He is required to inform his business part-
(c) any action to foreclose, recover or enforce any security interest intimate ners that he is undergoing a bankruptcy
created by the corporate debtor in respect of its property process.
including any action under the SARFAESI Act, 2002. Prior to entering any financial or commer-
(d) the recovery of any property by an owner or lessee or where cial transaction of prescribed value, either
such property is occupied by or in the possession of the individually or jointly, has to inform all
the parties involved about his bankruptcy
5
AIR 2001 SC 1273 process.
6
AIR 2008 SC 956

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Thus the debtors who at the cost of money of others were initiated in respect of corporate
behaving like high fliers and duping more and more people, are liquidation, individual bankruptcy
now getting clipped with the new provisions. and other matters.
STRINGENT OFFENCES AND PENALTIES FOR 149 Bankruptcy His function is to investigate
CORPORATES AND PERSONS RESPONSIBLE trustee affairs of the bankrupt, realise and
The punishment in case of corporates is imposed on officers and distribute the estate of bankrupt.
there is provision for minimum punishment and fine. 34, 35 Liquidator He verifies claims of all creditors,
takes into his custody or control
Officer of corporate debtor who, twelve months immediately all assets, property, effects and
preceding the insolvency commencement date , has concealed actionable claims of corporate
any property or debt due to or from the corporate debtors above debtors, evaluates the assets,
Rs. 10000/- or has removed part of the property, wilfully made false ensures continuity of business for
entry in any book or paper, concealed, destroyed or mutilated it, beneficial liquidation.
parted with any document, willfully created any security interest over
the asset obtained on credit or willfully concealed the knowledge of 22, 23, Resolution It means an insolvency
others doing so shall be punishable with imprisonment for a term of 5(27) professional professional appointed to conduct
not less than 3 years but which may extend to 5 years or with fine corporate insolvency resolution
which shall not be less than Rs. 1 lac but may extend to Rs. 1 crore. process and includes an interim
It is open to the person concerned to take a defense that he had resolution professional.
no intent to defraud or conceal. Defrauding creditors and making 209 Information They provide core services and
gift or transfer of or removing any property is also punishable.
utilities make available information in
Misconduct such as non disclosure to the resolution professional
universally accessible format.
also can attract punishment.
They also accept electronic
submission and get the information
In respect of falsification of books of corporate debtor, with intent to
defraud or deceive any person has been made punishable for a term received from various persons
not less than 3 years but may extend to 5 years. Willful and material authenticated by concerned
omission from statements relating to affairs of corporate debtor attracts parties. They also publish such
similar punishment. False representations made to creditors, false statistical information.
information submitted in application, contravention of moratorium terms The qualifications and experience requirement including
is also punishable. In all the cases, imprisonment has been provided. provisions regulating them shall be laid down under the rule
making power.
As far as individuals and partnership firms are concerned, there are
similar provisions made under sections 184 to 187. In addition to
IMPORTANT AMENDMENTS IN
imprisonment of 2 years, fine 3 times the amount of property dishonestly OTHER STATUTES:
dealt with, can be imposed. Contravention of the provisions and Income Tax Act - Section 178
providing false information also attracts imprisonment and fine.
Section 178 of the Income Tax Act as it stands now requires the
Thus the insolvency law which was so far considered toothless to liquidator of any company or receiver of assets of the company
create impact against the debtors, has been provided with many to give notice to the Assessing Officer and without leave of the
deterrent provisions. Commissioner, Income Tax, he cannot part with any of the
assets of the company or the properties until notified. Payment
VARIOUS CATEGORIES OF PROFESSIONALS AND to secured creditors entitled under law to priority is not affected
by this provision.
THEIR ROLE
Sec. Category Role The above provision has overriding effect under Sec. 178(6)
and the Third Schedule to the new bankruptcy law makes the
20 Interim To make every endeavour to following significant change:
resolution protect and preserve the value of
professional property of corporate debtor and Income Tax Act Sec. Position after Amendment
manage the operations as going 178(6)
concern. The provisions of this Sec- After the words ‘for the time
tion shall have affect not- being in force’ the words and
206 Insolvency To take action as stipulated
withstanding anything to figures ‘except the provisions
professionals u/s. 208 where any insolvency
the contrary contained in of the Insolvency and Bank-
resolution, fresh start, liquidation
any other law for the time ruptcy Code, 2016’ shall be
or bankruptcy process has been
being in force. inserted.

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INDIAN PARTNERSHIP ACT 1932 – cured creditor shall be enti- (Rest of the provision re-
SEC. 41 CLAUSE (A) tled to exercise any or all of
the rights conferred on him
mains same)
This will reduce the pos-
The comparative position is as under: under or pursuant to sub- sibility of conflict of laws and
Indian Partnership Act Sec. Position after Amendment section (4) unless exercise give overriding effect to the
41(a) of such right is agreed upon proceedings under Insolvency
A firm is dissolved (a) by the Sec. 41(a) is amended by by the secured creditors and Bankruptcy Code.
adjudication of all the part- First Schedule. representing not less than
ners but one as insolvent. Now that the specific sixty percent in value of the
provision for adjudication amount outstanding as on a
of bankruptcy of a firm is record date and such action
included in the Law the shall be binding on all the se-
provision was redundant cured creditors.
and hence deleted.
COMPANIES ACT
RECOVERY OF DEBTS DUE TO BANKS AND Under the 11th Schedule to the Act almost 36 amendments have
FINANCIAL INSTITUTIONS ACT been introduced. The prominent among them are the following :
Section 2(23) – relating to Company Liquidator
The long title of the Act becomes longer by the following change: Section 2 (94) – relating to winding up.
Sec. of RDB Act Position after Amendment Section 8(9) – the rehabilitation and insolvency fund.
Section 66(8) – unable to pay the amount of debt or claim.
Sec. 1 of the RDB Act- The Title will be ‘Recovery
Section 224 – wound up under Companies Act.
The Title of the Act was ‘Re- of Debts due to Banks and
Section 230 – Liquidator.
covery of Debts due to Banks Financial Institutions, Insol- Section 272 – Petition for winding up.
and Financial Institutions Act, vency Resolution, and Bank- Section 275(2) – Provisional Liquidator.
1993’. ruptcy of individuals and part- Section 280- Jurisdiction.
nership firms Act.’ Section 326 – Overriding preferential payments.
Sec. 17 of the RDB Act- The Sec. 1(A) has been added – Section 434 – Transfer of pending proceedings.
Tribunal was exercising the ‘Without prejudice to sub-sec- Section 468 – Relating to proceedings have been amended.
jurisdiction, power and au- tion (1)-
thority to entertain and decide • the Tribunal shall exer- One of the important provisions is under the Section 271 which
applications from the banks cise, on and from the lays down that ‘if a company has acted against the interest of
and financial institutions for date to be appointed by sovereignty and integrity of India, the security of the State,
recovery of debts due to such the Central Govt., the friendly relations with foreign States, public order, decency or
banks. jurisdiction, powers and morality then company can be subjected to winding up’.
authority to entertain
and decide applications This becomes a major third round of amendments to the New
Companies Act after it was enacted in 2013.
under Part III of Insol-
vency and Bankruptcy SICK INDUSTRIAL COMPANIES (SPECIAL
•
Code, 2016.
the Tribunal shall have
PROVISIONS) REPEAL ACT
The provisions of the SICA have been totally wiped off by
circuit sittings in all dis- inserting Sec. 4(b) which inter alia stipulates that ‘on the notified
trict headquarters.’ date, any appeal preferred to the Appellate Authority or any
reference made or inquiry pending to or before the Board or
SECURITIZATION ACT- SEC. 13(9) any proceeding of whatever nature pending under SICA 1985
The Insolvency and Bankruptcy Code 2016 has been given shall stand abetted’.
overriding effect in respect of consortium financing by the Option is available to such company to make reference to
secured creditors. The comparative position is as under: National Company Law Tribunal within 180 days from the
Provision as it stood – Sec. Position after Amendment commencement of Insolvency and Bankruptcy Code 2016 in
13(9) accordance with the provisions of the Code.
No fees will be payable for such reference.
In the case of financing a fi- ‘In the case of’ shall be sub-
nancial asset by more than stituted by ‘Subject to the pro- LIMITED LIABILITY PARTNERSHIP ACT 2008
one secured creditors or joint- visions of the Insolvency and Section 64(c) provided that a limited liability partnership may
financing of a financial asset Bankruptcy Code, 2016, in the be wound up by the Tribunal ‘if the limited liability partnership is
by secured creditors, no se- case of..’ unable to pay its debts.’ This clause has been omitted.

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TIME BOUND COMPLIANCE AND
ACTION CHART
Winding up proceedings under the Companies Act and
Insolvency Proceedings under the earlier laws had been victim
of inordinate delays which virtually benefited the dishonest
debtors. A meticulous care has therefore been taken in the new
Code and various action points have been stipulated.

The event chart is as under:

Stage Time Limit (No. of days)
Filing of application with requi- Before the debt itself be-
site particulars. comes time barred under
the Limitation Act.
Adjudicating Authority deciding Seven days.
admission or rejection of appli-
cation.
Rectification of defect.
Declaration of moratorium Fourteen days from date of
upon admission. filing.
Appointment of insolvency res- Twenty Eight days from date
olution professional. of filing.
Constituting committee of cred- Thirty Eight days from date
itors and appointment of Final of filing.
resolution professionals.
Submitting resolution plan, ces- 194 days from the date of
sation of moratorium in case of filing. information also will prove to be of great help. The dubious
approval of plan. practice of defrauding the creditors and enjoying others money
Alternatively – needs to be curbed because it is ultimately detrimental to the
initiation of liquidation in society at large. The law will implement it through NCLTs and
case of rejection of resolution DRTs and their machinery will have to be overhauled to meet
plan and insolvency resolution the new challenges. The rules and regulations that will be
process completion. framed also assume great significance.
Justice V. R. Krishna Iyer observed 7:
Extension of insolvency resolu- Upto 240 days from date of
‘Law is a practical instrument, a working tool in a work-
tion process. filing.
a-day world and where, (...) the affected fraction of the
If the abovementioned schedules are strictly adhered to and community is the common official, the commercial man
no dilatory tactics are entertained, then the impact of or rather and ordinary folk, the wiser rule of construction follows
the positive impact of the Act can be seen within two years or commonsense, not casuistry, context, not strictness and
thereabout. It appears the Higher judiciary also will have to not subtle nuance but plain sense.’
exercise self restraint in entertaining writ petitions or Special
Leave petitions filed purely for the purpose of circumventing The new law will have to send a message that in commercial
the vigors of the new law. world honoring the financial commitments in a timely manner
matters and any deviation may invite drastic adverse
CONCLUSIONS consequences.
India has completed 25 years of its economic reforms.
The economic reforms can be successful if the country Keeping in view the urgency for bringing the IBC Law in
keeps pace with the global trends and maintains parity action, the Finance Minister has directed senior officials of
with important economic and finance sector legislations in the Ministries of Finance and Corporate affairs to take steps
other countries. The biggest challenge is hence to create an including setting up of a board for implementation in a time
efficient, well integrated and transparent machinery. The role bound manner. CS

of professionals has been given prominence and there will be

greater and unprecedentedly high expectations from them. 7
Trustees of port of Bombay v. Premier Automobiles Ltd., (1974) 4 SCC 710,
The use of information technology for cross comparison of Para 39

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 Challenges in implementation of Insolvency
ARTICLE

and Bankruptcy Code

I
n India, Industrial undertakings were enacted for setting up special Debt
and large commercial enterprises Recovery Tribunals and also give powers
providing employment to people at of enforcement of securities without the
different levels, have always received intervention of the Courts to Banks & FIs.
preferential treatment in the matter of Actions under such new laws are also
loan defaults and inability to make profits. facing similar problems in implementation
The policy of the Government, at State and challenges to validity of recovery
and Central level, had always focussed action at various stages continues to
on continuation of employment of the delay and defeat recovery efforts.
workforce and for that purpose the lenders In the above extremely adverse
M. R. Umarji were required to find ways and means environment, it became necessary to
by which the business enterprise can enact the Insolvency and Bankruptcy
Consultant-IBA, Mumbai continue manufacturing or other business Code, 2016 for a dual purpose of
mrumarji41@[Link] activity. ascertaining whether defaulting

The law of insolvency as it stands at present is interpreted by

courts and insolvency orders are passed in extreme cases. The
proposed Bankruptcy Law is a major change and departure from
the existing law, which is interpreted by the Courts in favour of
debtors. Courts have held that winding up is a discretionary
relief which the Court should grant if existence of the company
will cause immense prejudice to all concerned. The order of
winding up should be made in rarest of rare cases. From such
principles the pendulum will start swinging in the opposite
direction once the Code comes into operation.

Nobody even mentioned the need to enterprise is viable and can be placed
recover defaulted loan and the stress under a resolution plan and if not liquidate
was on giving further loans for revival the assets and pay the creditors. At the
and rehabilitation. In the process the outset, it is necessary to note the changes
lenders were expected to grant reliefs, proposed to be introduced in the system:
concessions, reduce or waive interest and
also agree for long repayment schedules. • The trigger for filing application for
The criteria for sickness was and even now corporate insolvency resolution
continues to be 100% erosion of net-worth process is default in repayment of
under SICA and provision for indefinite financial debt or operational debt.
stay of recovery proceedings against There is no requirement of any notice
sick industrial undertaking continues to before filing for insolvency resolution
be on the statute book. In cases where process, by financial creditor.
such favoured treatment did not work, the
management of the enterprise was taken • Verification of default is to be done on
over by the Government or the industry the basis of data available with
was nationalised by enacting a special law. Information Utility to be set up under
With the introduction of income recognition the Code.
and prudential norms for Banks & FIs in
scene has undergone a change. • All solvent corporate debtors and
To address the problem of delays of the lenders have to furnish data to
system in speedy recovery of defaulted Information Utilities in respect of
loans of banks and FIs, special laws debts, liabilities, assets against which

46 I
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 CHALLENGES IN IMPLEMENTATION OF INSOLVENCY AND BANKRUPTCY CODE

ARTICLE
One crucial change sought to be
introduced under the Insolvency and
Bankruptcy Code, 2016 is the power
to file insolvency petition against
a debtor company immediately on
default without any notice and the
power of NCLT to pass orders for
insolvency resolution within 14 days
after verification of default.

if approved by 75% of creditors obtain sanction for the

Resolution Plan within 180 days or extended period of 270
days. If no plan is approved within 180/270 days the Enterprise
is to be placed under liquidation.

The challenge in implementation of the Insolvency & Bankruptcy

secured loans are obtained and instances of default. Code is that the new law will require total transformation of
mind-sets and well established norms and practices on the
• On verification of default from the information utility the part of:
Adjudicating Authority shall appoint interim Insolvency 1. business enterprises, as borrowers of the banks and FIs;
Professional and make public announcement of 2. mercantile community i.e. all buyers of goods and services
commencement of the Insolvency Resolution Process. including all public sector undertakings, departments of
Government both State and Central as well as local and
• Insolvency Professional has to take possession of all other public authorities;
assets and manage the affairs of the corporate debtor. 3. the lenders viz. banks, financial institutions, investors in
debt instruments and all other lenders; and
• Insolvency Professional shall form a creditors committee 4. the judiciary.
obtain the relevant data from the company and get the
Resolution Plan prepared and approved by the Creditors BORROWERS
Committee and the Adjudicating Authority. The borrowers of the Banks and FIs need to note that the new
law empowers the Insolvency Practitioners to repossess
• From the date of Insolvency Resolution order there will be assets and take-over management of the Enterprise of the
a moratorium against any action or recovery proceedings borrower, in the event of default in repayment of any loan
against the corporate debtor for 180 days or extended time instalment or interest without any notice and the law is very
of 270 days. stringent as compared to the SARAFESI Act, 2002. The
borrowers therefore need to devise a cash flow management
• Insolvency Professional is a practicing Chartered policy to ensure that there are no defaults and adopt a Code of
Accountant, Company Secretary, Advocate or Cost Conduct in regard to repayment of all liabilities
Accountant registered with the Insolvency and Bankruptcy
Board of India. • As a matter of policy ensure that all commitments to pay
irrespective of the quantum, for goods purchased or
• There are time limits prescribed for each step in the services availed or loan repayment shall be honored on or
Insolvency Resolution Process and if insolvency resolution before due date;
plan is not approved within 180 days or 270 days if
extended, the corporate debtor shall be ordered to be • If for any reason funds cannot be arranged for payment,
wound up and put under liquidation. inform the Bank well in advance with reasons for delay in
payment. Also indicate the date by which payment will be
It is clear that trigger for insolvency resolution petition is a made and whether subsequent payments due will be made
single default which will result in taking over possession of on time;
assets and management of the defaulter Enterprise by the
Insolvency Practitioner (IP). On such possession being taken • If there is any other long-term problem such as defect in the
the IP has to form Creditors Committee, examine viability and product which will take some time to correct or lack of orders

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In cases of loans to micro and small and file Insolvency Resolution Petition;

enterprises, it would be physically (2) If default is likely to be corrected shortly, it may not be
worthwhile to start Insolvency Resolution Process;
impossible to take possession of
defaulting enterprises and ask (3) Banks & FIs will also have to decide the categories of
loan accounts in which the action for recovery will be by
Insolvency Practitioners to manage filing Insolvency Resolution Process. In cases of loans to
them. In such cases, Banks will micro and small enterprises, it would be physically
impossible to take possession of defaulting enterprises
have to examine feasibility of and ask Insolvency Practitioners to manage them. In
restructuring the debt and if need such cases, Banks will have to examine feasibility of
restructuring the debt and if need be recover the debts by
be recover the debts by resorting resorting to Debt Recovery Laws. But if the Debtor itself
to Debt Recovery Laws. But if the files for insolvency resolution, the lender will have no
option to ensure that Insolvency Resolution Practitioner
Debtor itself files for insolvency appointed will protect the interest of lenders.
resolution, the lender will have no (4) If default is not likely to be corrected, file Insolvency
option to ensure that Insolvency Resolution Petition (IRP) which will compel the borrower
to prepare Insolvency Resolution Plan acceptable to 75%
Resolution Practitioner appointed in value of all creditors within 180 days.
will protect the interest of lenders.
(5) If after notice the Defaulter corrects the default is the
status quo ante to be restored or the Defaulter should be
or inability to sell, lenders will have to be kept informed. made to obtain approval of Resolution Plan inspite of
• If there are any remedial measures such as restructuring repayment of defaulted loan instalments, on the basis
the debt, further finance to correct defects in machinery / that total loan has been recalled.
or change in manufacturing process etc. bring it to the
notice of the lenders at the earliest opportunity. (6) For assessing the treatment of default for total recall or
• As a matter of policy ensure that there is no concealment treatment of payment of defaulted loan instalment or
of facts or diversion of funds or any action / conduct which interest it will be necessary to work-out certain norms
is contrary to loan sanction terms; taking into consideration following circumstances relating
to default:
• Extend full co-operation to the lenders in the matter of
preparation of Resolution Plan and obtain approval of • the default is a solitary one without any delays in
Adjudicating Authority with the consent of the lenders. payment of other dues for valid and satisfactory
reasons; or
LENDERS
When the new law becomes operative, the banks and FIs will • whether the default is inspite of capacity to pay or
have to formulate new policies for dealing with defaults for there are indications of diversion of funds and willful
different categories of loans and borrowers. Since, initiation default; or
of insolvency resolution process may result in Liquidation of
the Enterprise after 180 days Reserve Bank and the lenders • the default is recurring coupled with delays/ defaults in
need to address following policy issues: payment of other dues/ liabilities, requiring examination
of long-term viability; or
(1) The Bankruptcy Code provides that Insolvency Resolution
Process can be initiated by a financial creditor or • the default is on account of delays in payment for supply
operational creditor or the corporate debtor, in the event of goods / services to Government Departments, other
of default. The term default means non-payment of public authorities and public sector enterprises or large
whole or any part or instalment amount of debt which has undertakings; or
become due and payable and is not paid. If there is a
default in payment of instalment of a loan, the bank / FI • The default is on account of some accident or natural
will have to recall the entire loan before filing for calamity, requiring compassionate treatment of default
Insolvency Resolution. Hence, in the event of default, the including grant of debt relief.
Bank will have to assess whether default is on account of
some temporary problems or there is probability of further • The Banks and FIs will have to note that monetary
default and whether to recall the entire loan outstanding ceilings for the loans subject to the proposed Bankruptcy

48 I
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 CHALLENGES IN IMPLEMENTATION OF INSOLVENCY AND BANKRUPTCY CODE

ARTICLE
Code are very low at Rs. 1,00,000/- for companies and • Truly account for the cash flows and other realizations and
Rs. 1,000/- for non-corporates and hence the law will utilize them for repayment of the loans as per agreed
apply to all loans whether a loan to a farmer to buy a pair terms;
of bullocks or project finance for a mega petro chemical • If the cash flows are not used to repay loans disclose the
project. The norms for dealing with defaults will have to reasons and state where the funds are used, and
be formulated for different categories of borrowers. preferably obtain approval of the Bank for using the funds
for purpose other than repayment of working capital
• It is possible that defaulted loan is for purchase of a availed against such receivables;
specific asset like a vehicle or other equipment or a • Ensure that all undisputed liabilities or payments, cheques
house and it may be possible to recover the defaulted issued are discharged, paid or honoured on due dates so
loans by selling the security. In such cases is may not that disputes are minimized.
be necessary to resort to insolvency resolution process
against the defaulter; JUDICIARY
The law of insolvency as it stands is interpreted by courts and
• Credit Monitoring for high value accounts will have to be insolvency orders are passed in extreme cases. The
more elaborate to check whether the borrower is proposed Bankruptcy Law is a major change and departure
receiving payments for goods sold or services rendered from the existing law, which is interpreted by the Courts in
on time, and whether the borrower is generating surplus. favour of debtors. Courts have held that winding up is a
discretionary relief which the Court should grant if existence
• Loan documentation of the Banks may have to be of the company will cause immense prejudice to all concerned.
modified to provide that on a single default the Bank The order of winding up should be made in rarest of rare
shall be entitled to initiate insolvency petition and that cases. There is a recent Madras High Court decision holding
as and when the borrower realizes that there is a that passing winding up order against a company is like
likelihood of loan default it should inform the Bank the signing a DEATH WARRANT and such order cannot be
reasons for default and what steps are proposed to be passed for recovery of a loan. From such principles the
taken by the Enterprise to correct the default and what pendulum is swinging in the opposite direction requiring
is expected from the lenders. adoption of following principles for winding up companies:

BUSINESS COMMUNITY • A default is repayment of debt by a company means the

One crucial change sought to be introduced under the company is not solvent and insolvency proceedings can
Insolvency and Bankruptcy Code, 2016 is the power to file be initiated immediately on default;
insolvency petition against a debtor company immediately on
default without any notice and the power of NCLT to pass • As a borrower company is expected to be aware that loan
orders for insolvency resolution within 14 days after verification repayment is due on a particular date, there is no need to
of default. The new law calls for introducing new culture for give any notice of default;
the entire mercantile community as well as all purchasers of
goods and services of honoring commitments to pay on due • Any resolution plan proposed by the company should be
dates. The present practice is to delay payments as long as approved or not is for the creditors committee to examine
possible and do business availing credit from bank and also and decide. If such plan is not approved by the creditors
from suppliers of goods and services. Such delayed the company is to be liquidated and such liquidation order
payments has been the problem, the MSME sector is is as a result of creditors’ decision not to support the
grappling with for past many years. company.

All the Government authorities, local and other public • There is no exercise of judicial discretion in deciding
authorities, PSUs and other business entities under the whether liquidation order needs to be passed on rejection
control of the Government will have to ensure that all of Resolution Plan. If plan is not approved by Creditors,
commitments made or obligations undertaken are honoured the company is to be wound up.
on due dates. Such new culture will facilitate trade and
industry to honour their own commitments for payment of Adoption of new norms for honoring commitments to pay and
borrowed funds and other payments for goods and services. implementation of the IBC based on new principles are going
to be major challenges.
The business community needs to adopt a Code of Conduct
for itself in the matter of utilization of loans and meeting In addition, establishment of new entities such as Insolvency
payment obligations, as under: Professionals, Insolvency Professional Agencies, Insolvency
and Bankruptcy Board of India, Information Utilities and the
• Utilize the Loans for the purpose for which they are National Company Law Tribunals and make them functional
granted and ensure that there is no diversion of funds and is also going to be a major challenge in implementing the
the cash flows and other realizations; Code. CS

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 Corporate Insolvency Resolution
ARTICLE

Process – Brief analysis and challenges

C
orporate failure may be due significantly lower than its liabilities. The
to business or financial failure. re-organisation plan involved sale of
Business failure is breaking down brands, reduction of labour force etc. The
of business model and inability to generate company’s core brands namely Chevrolet,
enough revenues. Financial failure is due Cadillac, GMC and Buick were retained.
to mismatch between payments and The Company sold off its brand namely
receivables of an enterprise. A sound Saturn, Saab and Hummer. The US
bankruptcy process helps the creditors treasury has ownership stake of 60.8%
and debtors to come to a platform that in the emerged General Motors.
brings remedy for business or financial
Vineet K Chaudhary*, FCS failure. It is not necessary that the THE CASE OF WORLDCOM
defaulting companies go for liquidation. For that matter, Chapter 11 could even
V.K. Chaudhary & Co. There may be situations in which a viable recover WorldCom which emerged from
Company Secretaries, Noida mechanism can be found through which bankruptcy during 2004 after filing of
vkc_csp@[Link] the companies may be protected as a bankruptcy application. WorldCom did not
going concern. have the cash needed to pay $7.7 billion

The Insolvency and Bankruptcy Code is a new

generation law that provides efficient revival
mechanism and also throws challenges in the form
of capacity building, harmonisation of various laws,
creation of insolvency professionals, development
of regulatory platform and so on.

SOME INTERNATIONAL in debt, and therefore, filed for Chapter 11

Alka Kapoor, FCS EXAMPLES bankruptcy protection on July 21, 2002. In
its bankruptcy filing, the firm listed $107
Joint Secretary, ICSI, New Delhi
In fact, American bankruptcy procedures billion in assets and $41 billion in debt.
[Link]@[Link]
enable sick companies to restructure its WorldCom’s bankruptcy filing allowed
debt obligations even while remaining it to pay current employees, continue
operational. In this context, one must service to customers, retain possession of
recognise that in the US the well known assets, and gain a little breathing room to
Chapter 11 bankruptcy proceedings reorganize and renamed as MCI.
are considered as re-organization/
resurrection process for corporates. Many The existing UK insolvency framework
companies are known to have revived from is defined by the Insolvency Act 1986.
them. Further, Chapter 11 ensures the Accordingly to the Act, failing companies
emergence of companies with sustainable are either liquidated or submitted to
debt levels and profitable working. an insolvency process that may allow
THE CASE OF GENERAL them to be rescued as going concerns.
The administration procedure was
MOTORS introduced by the Insolvency Act, 1986
One of the most remarkable events and substantially revised by the Enterprise
in 2009 has been the decision of Act, 2002 to include a streamlined rescue
General Motors Corporation USA to file procedure allowing the company or
bankruptcy proceedings — a decision (more often) its directors to appoint an
*
Central Council Member, ICSI and Chairman forced on the company after it lost market administrator without the involvement of
Corporate Laws and Governance Committee, ICSI share in the recession. Its assets were the Court subject to conditions.

50 I
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 CORPORATE INSOLVENCY RESOLUTION PROCESS – BRIEF ANALYSIS AND CHALLENGES

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In India, The Insolvency and Bankruptcy Code, 2016(IBC) insolvency resolution process twelve months preceding
gazetted on 28.05.2016, that provides a consolidated single the date of making of the application; or
regulatory platform for insolvency of corporates, LLPs, (c) a corporate debtor or a financial creditor who has
individuals and partnership firms, has taken the positives violated any of the terms of resolution plan which was
of US and UK Bankruptcy Laws such as moratorium during approved twelve months before the date of making of
insolvency process, time bound insolvency process, role of an application under this Chapter; or
insolvency professionals in the process such as taking over of (d) a corporate debtor in respect of whom a liquidation
management, powers of creditors in the process etc. The code order has been made.
introduces a new regulator “The Insolvency and Bankruptcy
Board of India’. It also introduces the concept of “Information 4. Who can initiate/apply for CIRP
Utility” a data base of credit information that helps in the
Insolvency Resolution Process, since one of the main hurdle Who are entitled to initiate CIRP application to National
Company Law Tribunal(NCLT)?
in the current restructuring and liquidation process is non-
availability of credit information. a) FINANCIAL b) OPERATIONAL
CREDITOR CREDTOR
This article attempts to analyse the Corporate Insolvency c) CORPORATE
Resolution Process (CIRP) under Part II Chapter II of the APPLICANT
Insolvency and Bankruptcy Code, 2016.
Before we dwell on the resolution process, let us understand
WHO CANNOT INITIATE CIRP? each of the three categories of creditors who can make an
1. CIRP cannot be initiated unless there is a default which application to NCLT for an Insolvency Resolution Process.
is beyond the Minimum threshold.
CIRP can be initiated only when any corporate debtor a. Financial Creditor
commits default. The minimum default thresholds for As per Section 5(7) of IBC “financial creditor” means any
initiation of CIRP is Rupees One lakh or such higher amount person to whom a financial debt is owed and includes a
as may be notified the Central Government which shall not person to whom such debt has been legally assigned or
exceed Rupees one Crore. transferred to;

2. CIRP cannot be initiated against the financial service As per section 3 (11) “debt” means a liability or obligation
provider in respect of a claim which is due from any person and
As per Section 3(8) of IBC corporate debtor means a includes a financial debt and operational debt.
corporate person who owes a debt to any person. As
per Section 3(7) “corporate person” means a company as Section 5(8) of the IBC states that “financial debt” means
defined in clause (20) of section 2 of the Companies Act, a debt along with interest, if any, which is disbursed
2013, a limited liability partnership, as defined in clause against the consideration for the time value of money and
(n) of sub-section (1) of section 2 of the Limited Liability includes—
Partnership Act, 2008, or any other person incorporated (a) money borrowed against the payment of interest;
with limited liability under any law for the time being in force (b) any amount raised by acceptance under any acceptance
but shall not include any financial service provider. As the credit facility
definition of corporate person excludes financial service or its de-materialised equivalent;
provider, CIRP cannot be initiated against financial service (c) any amount raised pursuant to any note purchase facility or
provider. the issue
of bonds, notes, debentures, loan stock or any similar
Why financial service provider is excluded from the definition instrument;
of ‘Corporate Person’? (d) the amount of any liability in respect of any lease or hire
The financial service provider is excluded from the purchase
definitions of corporate persons as the failure of financial contract which is deemed as a finance or capital lease under
firms is comprehensively covered under the proposed the Indian Accounting Standards or such other accounting
“Indian Financial Code” standards as may be prescribed;
(e) receivables sold or discounted other than any receivables
3. Persons not entitled to initiate CIRP sold on nonrecourse basis;
Section 11 of the Code states that the following persons (f) any amount raised under any other transaction, including any
shall not be entitled to make an application to initiate forward
corporate insolvency resolution process under this Chapter, sale or purchase agreement, having the commercial effect
namely:— of a borrowing;
(a) a corporate debtor undergoing a corporate insolvency (g) any derivative transaction entered into in connection with
resolution process; or protection
(b) a corporate debtor having completed corporate against or benefit from fluctuation in any rate or price and for

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calculating the value of any derivative transaction, only the Hence, as per definition a person includes resident outside India
market value of such transaction bshall be taken into account; and accordingly a CIRP application can be initiated by him.
(h) any counter-indemnity obligation in respect of a guarantee,
indemnity, bond, documentary letter of credit or any other THE DIFFERENCE IN THE ROLE OF
instrument issued by a bank or financial institution; CIRP APPLICANTS
(i)the amount of any liability in respect of any of the guarantee
or indemnity for any of the items referred to in sub-clauses Sl. Particulars Financial Opertational Corporate
(a) to (h) of this clause; No. Creditor Creditor Debtor

All Secured Creditors are Financial Creditors 1. Initiation of On occurrence On occurrence of Defaulting
Financial creditor includes secured creditor, since the definition Insolvency of default a default an Corporate
of financial debt covers security interest also. resolution financial operational debtor can
process creditor may creditor can initiate.
b. Operational Creditor itself or jointly
initiate the
As per Section 5(20) “operational creditor” means a person to with other process after the
whom an operational debt is owed and includes any person financial expiry of the
to whom such debt has been legally assigned or transferred; creditor initiate
period of of ten
the process. days from the
As per section 5(21) of the IBC states that “operational debt”
date of delivery
means a claim in respect of the provision of goods or services
of notice or
including employment or a debt in respect of the repayment
invoice
of dues arising under any law for the time being in force and
payable to the Central Government, any State Government demanding
or any local authority. payment and he
does not receive
All unsecured Creditors are not operational creditors the payment or
All unsecured creditors are not operational creditors; where as all notice of dispute
operational creditors are unsecured creditors, as money borrowed from the
against the payment of interest without security interest is also corporate debtor.
included in the definition of financial debt and thus considered 2. The definition As per As per Section As per section
as financial creditors. of Default explanation to 3(12) Default 3(12) Default
c. Corporate Applicant section 7(1), means non- means non-
As per Section 5(5) of IBC “corporate applicant” means— definition of payment of debt payment of
(a) corporate debtor; or default with when a whole or debt when a
(b) a member or partner of the corporate debtor who is authorised reference to any part or whole or any
to make an application for the corporate insolvency resolution financial instalment of the part or
process under the constitutional document of the corporate
creditor is amount of the instalment of
debtor; or
Default debt has become the amount of
(c) an individual who is in charge of managing the operations
includes a due and payable the debt has
and resources of the corporate debtor; or
default in and is not repaid become due
(d) a person who has the control and supervision over the
financial affairs of the corporate debtor; respect of a by the debtor or and payable
As per section 3(8) of the IBC “corporate debtor” means a financial debt the corporate and is not
corporate person who owes a debt to any person; owned not only debtor as the repaid by the
to the applicant case may be. debtor or the
Person includes a person resident outside India. financial corporate
creditor but to debtor as the
In respect of the above three applicants the term “person” any other case may be.
includes financial
creditor of the
(a) an individual; corporate
(b) a Hindu Undivided Family; debtor.
(c) a company; 3. Documen- They have to The evidence The debtor
(d) a trust; tation submit record submitted of must provide
(e) a partnership; of default by default can be the statement
(f) a limited liability partnership; and
the entity in either in of audited
(g) any other entity established under a statute,
electronic electronic or balance sheet
and includes a person resident outside India.

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records of the physical form of the entity at shall
liabilities filed which includes a
the time of comprise of
in the copy of invoice
application, such persons
information demanding with all assets as specified by
utilities. payment or and liabilities the Board.
demand notice as well as the 6. Attending the They have Their They will be
delivered by audited meeting of right to representative invited to
operational balance sheet committee of attend. can attend in attend the
creditor to the
for the two creditors case where the meeting for
corporate debtor.
years prior to aggregate dues only
the application, are not less discussions.
and the cash than 10% of
flow statement debt.
of entities
during such 7. Voting The voting of They don’t have Not relevant
period. the creditors any voting
4. Proposal of Along with the The IBC does not The IBC committee will power.
insolvency application to mandate the requires that be by majority
resolution the NCLT, operational corporate vote of not
professional financial creditor to debtor shall less than 75%
(IRP) creditor has to propose an propose a of the voting
propose the insolvent registered share of the
name of professional. He insolvent financial
Insolvent may propose the professional to creditors.
professional to same. If no manage the
manage the proposal is made, IRP. 8. Information Financial Operational
IRP. NCLT shall make Utilities Service creditor has to creditor may
reference to the provide submit the
Insolvency and financial financial
Bankruptcy information information to
Board of India and the information
for information utility in such a
recommendation relating to form as may be
of Insolvency assets in specified
Professional, and relation to
based on the which any
same security has
appointment can been created,
be made. to the
5. Members of The committee Operational They do not Information
creditors of creditors creditors do not form part of utility for
committee shall form part of committee of record
comprises of committee of creditors. keeping.
all financial creditors.
creditors of CONCEPT OF MORATORIUM IN CIRP.
the
corporate As per section 13 of the IBC the NCLT shall by an order declare
debtor, where moratorium that imposes a stay for the actions referred under section
corporate 14 (1) of the IBC. The following shall be prohibited by declaring
debtor does moratorium, namely-
not have any
(a) the institution of suits or continuation of pending suits or
financial
proceedings against the corporate debtor including execution
creditors, the
of any judgment, decree or order in any court of law, tribunal,
committee
arbitration panel or other authority;

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(b) transferring, encumbering, alienating or disposing of by the NCLT to declare Moratorium, appoint Interim Resolution
corporate debtor any of its assets or any legal right or beneficial Professional (IRP) for a term not exceeding thirty days from
interest therein; the date of appointment and cause public announcement
(c) any action to foreclose, recover or enforce any security interest
created by the corporate debtor in respect of its property including Public announcement shall contain the information, such as
any action under the Securitisation and Reconstruction of - name and address of the corporate debtor under the CIRP,
Financial Assets and Enforcement of Security Interest Act, 2002; name of the authority with which corporate debtor is
(d) the recovery of any property by an owner or lessor where such registered, the last date for submission of claims and date
property is occupied by or in the possession of the corporate on which CIRP will be closed etc.
debtor.
Insolvency Commencement date** starts from the date of
The order of moratorium shall have effect from the date order admission of application and is to be completed within 180
accepting the application till the completion of the corporate days of commencement which can be extended to ninety
insolvency resolution process. days(one time) by NCLT

CONCEPT OF RESOLUTION Interim Resolution Professional to constitute Committee of

PROFESSIONAL IN CIRP Creditors comprising all financial creditors .
The CIRP involves appointment of interim resolution professional Management of affairs of corporate debtor as a going
by NCLT and appointment of Resolution Professional by Committee concern, powers of Board of Directors or the partners of
of Creditors. debtor shall stand suspended and exercised by the Interim
Resolution Professional (IRP)
Section 5(27) states that “resolution professional”, for the purposes
of this Part, means an insolvency professional appointed to conduct Committee of Creditors within 7 days of its constitution
the corporate insolvency resolution process and includes an interim either to resolve to appoint IRP as Resolution
resolution professional; Professional(RP) or replace IRP with another RP

Section 2(19) “insolvency professional” means a person enrolled All decisions of committee of creditors shall be taken by vote
under section 206 with an insolvency professional agency as its of not less than 75% of voting share ***of financial creditor
member and registered with the Board as an insolvency professional
under section 207; Such professionals are required to pass the
qualifying examination as stated under Section 196. Preparation of information memorandum by RP for
formulation of Resolution Plan by Resolution Applicant.
The name of Interim Resolution Professional is proposed by
applicant of Insolvency process and appointed by NCLT. The Resolution Applicant prepares the Resolution plan based
Resolution Professional is appointed by the committee of creditors on information memorandum
(with 75% of voting share of financial creditor). The committee of
creditors may appoint Interim Resolution Professional as resolution Submission of Resolution Plan by Resolution Applicant to
be examined by RP and to be approved by 75% of voting
professional or any other resolution professional.
share of financial creditor
The Process
RP to submit approved Resolution Plan to NCLT which
The Financial Creditor/Operational Creditor or Corporate shall Approve or Reject/Order for Liquidation
Debtor as the case may be, initiate the CIRP by application
to NCLT under section 7,8 and 10 respectively. The approved plan shall be binding on the corporate
debtor and its employees, members, creditors, guarantors
l Financial Creditor on Default and operational Creditor and other stakeholders involved in the resolution plan.
after ten days from the date of delivery of demand
notice can initiate CIRP
Moratorium ends on the date of approval
l A Financial Creditor and Corporate Debtor shall
propose the name of IRP and Operational Creditor may Appeal may be made to NCLAT on Rejection
propose the name of IRP
*Grounds of rejection – default has not been occurred or any
NCLT within 14 days of receipt of application by order disciplinary proceedings against the proposed resolution processional
admit or reject application(before rejecting* give notice to
by financial creditor or corporate applicant as the case may be
rectify the defect within 7 days of receipt of notice)
**Section 3(12) states that “insolvency commencement date”
means the date of admission of an application for initiating
Intimation of admission or rejection to be given by NCLT
corporate insolvency resolution process by the Adjudicating
within seven days of admission or rejection

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Authority (i.e. NCLT) Whereas Section 3(11) states that with the Government of any country outside India for enforcing
“initiation date” is the date on which financial creditor (under the provisions of this Code.
sections 7), operational Creditor (under Section 9) or Corporate (2) The Central Government may, by notification in the Official
Debtor (under section 10), as the case may be makes an Gazette, direct that the application of provisions of this Code
application to the NCLT for initiating corporate insolvency in relation to assets or property of corporate debtor or debtor,
resolution process (CIRP). including a personal guarantor of a corporate debtor, as the
case may be, situated at any place in a country outside India
***Section 5(28) defines “voting share” means the share of the with which reciprocal arrangements have been made, shall be
voting rights of a single financial creditor in the committee of subject to such conditions as may be specified.
creditors which is based on the proportion of the financial debt
owed to such financial creditor in relation to the financial debt The process of recognition of foreign proceedings and cross
owed by the corporate debtor. court recognitions, agreements with countries is a long term
process and challenging.
FEW CHALLENGES
The time bound process of CIRP Consequential amendment in other legislations and
The 180 days time bound process for CIRP would be a harmonisation with IBC.
major challenge calling for speedier process in collating credit The impact of Insolvency and Bankruptcy Code, 2016 will have
information, preparation of information memorandum by RP, an overriding effect on other legislations, requiring amendments
setting up of information utilities that provide credit information, of the following:
establishment of full benches of NCLT to handle the work load
of pending cases, availability of insolvency professionals, l The Indian Partnership Act 1932
process involved in taking over of management by insolvency l The Central Excise Act 1944
professionals, time for the adjudicating authority in evaluation l The Income Tax Act 1961
of the resolution plan etc. l The Customs Act. 1962
l Recovery of Debts Due to Banks and Financial Institutions
Establishment of infrastructure at the offices of adjudicating Act, 1993
authorities l The Finance Act 1994
The IT and other infrastructure at the offices of adjudicating l The Securitisation and Reconstruction of Financial Assets
authorities is required to be strengthened to handle the CIRP and Enforcement of Security Interest Act 2002
and liquidation cases that are being filed with them. l Sick Industrial Companies (Special Provisions) Repeal Act, 2003
l The payment and Settlement Systems Act 2007
Specification, creation and capacity building of insolvency l The Limited Liability Partnership Act 2008
professionals l the Companies Act, 2013
The Code requires RPs who are insolvency professionals and The amendment of the above mentioned legislations and their
are to be member of Insolvency Professional Agencies and is harmonisation with IBC would be a big challenge.
required to pass the qualifying examination. To generate such
professionals to handle CIRP cases will take few years. As per The Insolvency and Bankruptcy Code 2016, a vital reform that will
Section 244 which deals with transitional provisions relating to make it much easier to do business in India. The IBC will lead to
treating such categories of persons with such qualification and promote entrepreneurship, availability of credit, and balance the
experience as insolvency professional agencies and insolvency interests of all stakeholders by consolidating and amending the
professionals, capacity building of such professionals would be laws relating to reorganization and insolvency resolution of corporate
a challenge, since the Code is very new. persons, partnership firms and individuals in a time bound manner
and for maximization of value of assets of such persons and matters
Cross Border Insolvency connected therewith or incidental thereto. This Law promises to
The report of the Joint Committee on Insolvency and Bankruptcy make it easier to wind up a failing business and facilitate a better
Code observes the following paragraph vide point no 62 and faster debt recovery mechanism in the country. CS

‘’The Committee deliberated the issue and noted that “The

Code at present does not explicitly deal with issues and text SOURCES:
related to cross border insolvency. However given that many The Insolvency and Bankruptcy Code 2016
corporate transactions and businesses today involve an Report of the Joint Committee on The insolvency and
international and cross border element, the implications of Bankruptcy Code 2015
cross border insolvency cannot be ignored for too long if India The Report of the Bankruptcy Law Reforms Committee
is to have a comprehensive and long lasting insolvency law Volume I
as the Code aims to achieve. Not incorporating this will lead
to an incomplete Code” [Link]
Accordingly the following clause has been incorporated [Link]
in the code in Section 234
234. (1) The Central Government may enter into an agreement [Link]

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 Corporate Insolvency Resolution Process
ARTICLE

under the Insolvency and Bankruptcy Code,

2016 - An analysis
INTRODUCTION Information Utilities and getting the
Insolvency Professionals issued the

T
he Bankruptcy Law Reform necessary licences after they qualify the
Committee (BLRC) formed by exams and possess the practical
Government of India in the month experience as may be prescribed by
of August, 2014, under the chairmanship of IBBI.
Mr. T.K. Vishwanathan (Former Secretary
General, Lok Sabha and Former Union
NEED FOR AN EFFECTIVE
Law Secretary) to study the corporate INSOLVENCY AND
bankruptcy legal framework in India BANKRUPTCY REGIME
Nilesh Sharma and submit a report to the government Business failures, which take place for a
for reforming the system submitted its variety of reasons, are natural and
Senior Partner , Dhir & Dhir
Associates, Advocates & Solicitors, final recommendations on 04.11.2015. normal features of a market economy
New Delhi
[Link]@[Link]
An effective law to deal with corporate insolvency /
bankruptcy enables an economy to rescue the viable
businesses and to pull the valuable economic
resources out of the unviable businesses through the
liquidation process at the earliest without further
depletion in the value of the assets so that the same
can be deployed in other profitable economic activity.

Along with the recommendations, BLRC especially in developing and emerging

also submitted a draft Bill titled as economies. A number of products and
‘Insolvency and Bankruptcy Bill, 2015’, services becoming obsolete due to
which proposed to replace the existing development of new products and
provisions as to insolvency resolution services, sudden change in the
and liquidation/ bankruptcy of corporate Government policies, setting up of new
entities, individuals and partnership firms. units by competitors resulting in increase
The bill also proposed to repeal the in supply of the goods being produced
Presidency Towns Insolvency Act, 1909 and a number of other reasons, may
and the Provincial Insolvency Act, 1920 make business of a corporate unviable /
The said Bill was passed by both the fail. The business failure affects all the
Houses of Parliament and subsequently stakeholders of a corporate including its
got Presidential assent on 28.05.2016. lenders, shareholders, creditors,
The Govt. of India has to now frame the suppliers, customers, workers and
necessary rules and regulations and central and state governments very
create the necessary infrastructure adversely. It is, therefore, essential that
before putting the provisions of the said the valuable resources including capital,
Act (“Insolvency and Bankruptcy Code” manpower, machinery and management,
or ‘The Code’) into effect. The necessary are pulled out of the failed / unviable
infrastructure for the same includes businesses at the earliest and are
formation of Insolvency and Bankruptcy deployed in other profitable ventures.
Board of India (IBBI), setting up the The viable businesses are, however,
Insolvency Professional agencies and required to be re-organized at the

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earliest. / assets of the company. In addition, due to the passage
In a situation of corporate insolvency, if the stakeholders can of time, the value of the assets also gets depleted. As
make rational and quick decisions to deal with the said such, a corporate insolvency regime should protect the
situation i.e. the decision about continuation of business, its creditors interest by avoiding the delays in the insolvency
re-organization or its closure, a law to deal with the insolvency process. Early completion of insolvency process also
situation and the intervention of the courts may not be protects the interest of other stakeholders i.e. employees
required. However, it has been observed that the stakeholders and shareholders.
fail to take such decisions to deal with the situation of (ii) A corporate insolvency regime should help in promoting
insolvency and, therefore, is the need for a corporate the growth of an economy through efficient reallocation of
insolvency law. resources, which otherwise remain locked in unviable /
closed entities.
An economy needs an effective Bankruptcy Law to deal with (iii) An efficient corporate insolvency regime improves the
the situation where in the case of inability of a debtor to make rights of the creditors and incentivizes them to increase
the payment to its creditors as per the payment schedule, the the supply of credit in the market. As a result, not only
right of the creditors to get the control over the affairs of the that the supply of credit in the market improves, the cost
defaulting debtor does not get effected and that the debtor of credit also reduces improving the viability and
continues to have control over the affairs of its business. competitiveness of the businesses.
Though, contractually the creditors may have the right to get (iv) An efficient corporate insolvency regime improves
control over the business of the defaulting debtor, however, business environment and thus encourages
due to inefficiency of the prevailing legal system, they are not entrepreneurship. The same also results in improving the
able to get the said control without the intervention of the investor confidence.
court. In case, the legal system provides for adequate penalty (v) In India, due to weak rights of the creditors specially the
and punishment for those who violate these contractual unsecured creditors corporate bond market has not
obligations, the intervention of the courts / tribunals in these developed much though worldwide bonds are treated as
matters can be minimized. reliable and efficient source of raising finance at much
lower cost by companies. As a result of the same, the
It is often said that “ in the absence of a bankruptcy law a infrastructure sector in India has been the biggest sufferer.
firm’s assets would be sold as scrap and value would be lost”. However, with an efficient corporate insolvency regime
As such, the law to deal with corporate insolvency / bankruptcy resulting in improved creditors rights, it is expected that
enables an economy to rescue the viable businesses and to the corporate bond market in India shall develop, which
pull out the valuable economic resources out of the unviable will improve the availability of finance to the corporates at
businesses through the liquidation process at the earliest much cheaper cost.
without further depletion in the value of the assets so that the
same can be deployed in other profitable economic activity.
EFFECT OF BANKRUPTCY OF FIRMS AND
BANKRUPTCY LAWS ON ECONOMIES
FUNCTIONS OF A CORPORATE Bankruptcy of the firms and the legal procedures to deal with
INSOLVENCY REGIME the same have huge implication for an economy. Bankruptcy
A corporate insolvency regime has the following functions: of firms affects an economy very adversely due to loss of
(i) It identifies the signs of insolvency at the earliest. production / services by the manufacturing / other facilities
(ii) Initiates the insolvency process quickly. owned by the bankrupt firms. The same results from loss of
(iii) Creates a collective platform of the stakeholders to business / orders, non-supply of material by the suppliers,
enable them to take decisions about the future of the desertion by the employees, dis-continuation of the working
distressed entity capital facilities by the lenders, dis-connection of power,
(iv) Helps reorganization of the viable businesses; attachments by statutory authorities etc.
(v) Sends the unviable businesses to liquidation at the
earliest to arrest any substantial loss in value. Bankruptcy laws also affect an economy very substantially.
OBJECTIVES OF A CORPORATE Creditor-friendly bankruptcy laws, which affect transfer of
management from the debtor to an Insolvency Professional /
INSOLVENCY REGIME Administrator / Trustee, may disrupt and damage continuing
A well designed corporate insolvency regime has the following businesses of the debtors, which although viable, but has not
policy objectives: been able to fulfill its debt obligations due to temporary
(i) It should protect the interest of the creditors by reorganizing financial constraints. The same also results in liquidation of
the viable businesses to the extent possible and should many viable businesses as the secured creditors have a
quickly liquidate the unviable businesses. In case any tendency to push the defaulting debtors towards liquidation as
delay takes place in the above process, the biggest any delay by the bankruptcy process adversely affects the
sufferer are the creditors. In many cases, promoters / value of their security.
managers of unviable businesses prolong the insolvency
process and during the said period siphon away the funds On the other hand, in the cases of debtor-friendly regimes, the

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issued by the corporate, do not have recourse to the same.

An effective legal framework Weak powers to the said creditors have resulted into low
growth in our credit market specially in the bond market.
for timely resolution of
Insolvency and Bankruptcy Another impact of the weak rights of the creditors is that they
lend only to very few big companies, who are unlikely to
would support development default. Further, debt in business financing mostly consists of

of credit markets and

secured debt as that is the debt where the creditors have
some rights. The absence of lending without security and the
encourage entrepreneurship lack of lending based on the business prospects of a firm has
resulted in debt financing of asset-heavy industries. On the
and would also improve other hand, some of the other important industries which are

ease of doing business and labour intensive have been starved of credit.

facilitate more investment The scenario, which we are in presently, where the NPAs
have increased manifold during the recent few years, we often
leading to higher economic hear that “though the companies are sick, their promoters are

growth and development. not”. People also say that the promoters of the defaulter
companies should be held personally liable for the defaults or
that they should be put behind bars.
debtors, their shareholders and unsecured creditors prolong
the proceedings even in the cases of economically unviable There is a need, however, to understand that in a market
firms in place of allowing the said firms to liquidate. The economy, business failure is as usual as thriving of a
dilution in the value of the security of the secured lenders due business. It is not that all the business failures are due to the
to delay in the bankruptcy process is borne by the secured mala fide intention and siphoning away of the funds by the
creditors. On the other hand, the debtor / shareholders and promoters of the businesses. There are many reasons for
unsecured creditors, they benefit due to the continuation of failures of businesses which are beyond the control of the
operations of the unviable firms as the funds generated by the promoters / management of the businesses. Considering all
said firm are used by them towards their personal benefits at the defaults as criminal will discourage entrepreneurship and
the cost of the secured creditors. risk taking and will adversely affect the growth and development
FAILURE OF EXISTING BANKRUPTCY of the economy. The concept of a “company with limited
liability” was created for encouraging the entrepreneurs to
MECHANISM IN INDIA AND ITS EFFECT undertake riskier businesses, which entrepreneurs were not
For dealing with insolvency and bankruptcy there has not willing to undertake otherwise. As a result of creation of the
been a single law in India. Insolvency and Bankruptcy of said entities only, the economies have been able to produce a
companies are dealt with by Sick Industrial Companies number of products and services, which entrepreneur, with
(Special Provisions) Act, 1985, the RDDB FI Act, 1993, the unlimited liability organizational structures would not have
SARFAESI Act, 2002 and the Companies Act, 1956. A ventured into.
number of tribunals are dealing with the said laws including
BIFR, DRT & NCLT and their Appellate Tribunals. Liquidation The Insolvency and Bankruptcy code 2016 has been enacted
of companies is handled by the High Courts. The Individual with the objective to consolidate and amend the laws relating
Bankruptcy and Insolvency is being dealt with under the to reorganization and insolvency resolution of corporate
Presidency Towns Insolvency Act, 1909 and the Provincial persons, partnership firms and Individuals, in a time bound
Insolvency Act, 1920 and is dealt with by the courts. The said manner, for maximization of value of assets of such persons,
framework for Insolvency and Bankruptcy is treated as to promote entrepreneurship, availability of credit and balance
inadequate, ineffective and results in undue delays in their the interest of all stakeholders including alteration in the
resolution. priority of payment of government dues etc. It was considered
that an effective legal framework for timely resolution of
In India, the creditors have had very less power to deal with Insolvency and Bankruptcy would support development of
defaulting borrowers. The promoters/management of the credit markets and encourage entrepreneurship and would
company continue to have control of the companies even after also improve ease of doing business and facilitate more
committing defaults. In 2002, the banks and FIs were given investment leading to higher economic growth and
the powers to enforce their security interest without going to development.
the court through the provisions under the SARFAESI Act.
Though the said powers have been given to banks and FIs, a
FEATURES OF PRESENT CREDIT MARKET
number of other lenders / creditors including NBFCs, IN INDIA
individuals and firms, who supply goods and services to the Some of the features of the present credit market in India,
corporates, lend money to them and subscribe to the bonds which necessitates reforming its Insolvency laws, through the

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IBC as observed by BLRC in its final report dated 04.11.2015, The major provisions of the Code are as given hereunder: -
are as follows: - Insolvency regulator: The Code provides for establishment
(i) The idea behind the suggestions made by the committee of an insolvency regulator i.e. Insolvency and Bankruptcy
has been that as long as the debt obligations are met by Board of India (IBBI) to exercise regulatory oversight over
a corporate, its equity owners have complete control and insolvency professionals, insolvency professional agencies
creditors have no say in how the business is run. and information utilities.
However, when default takes place, control is supposed
to transfer to the creditors; equity owners have no say. Insolvency adjudicating authorities: The adjudicating
(ii) The companies in India, however, do not work based on authority which will have the jurisdiction to hear and dispose
the above. Till now, the creditors have had low powers of the insolvency cases by or against the individual and
when faced with default and promoters stay in control of unlimited partnership firms shall be the debt recovery tribunal
the company even after default. and with respect to the companies and limited liability entities,
(iii) Presently, the creditor has only one element of a will be NCLT. The Appeal against DRT and NCLT shall lie to
bankruptcy framework i.e. SARFASI Act, which provides DRAT and NCLAT respectively. NCLAT shall also be the
banks the power to repossess and sell the fixed assets appellate authority to hear appeals against orders passed by
which are pledged to them. the regulator in respect of insolvency professionals or
(iv) Although, SARFAESI Act gives powers to the banks to information utilities.
repossess and sell the securities mortgaged to them, but
not all lenders in the economy are banks. A number of Insolvency Professionals and Insolvency Professional
lenders are small and household and financial firms who Agencies: One of the most important changes brought about
invest in corporate bonds, but the prevailing Insolvency by the Code is that it provides for creation of a totally new
and recovery Legal framework does not provide the said class of professionals i.e. the insolvency professionals, who
bond holders an effective system of recovering their dues will conduct and run the entire insolvency process and will be
and as a result of the same, the corporate bond market in regulated by Insolvency and Bankruptcy Board of India.
India has not developed. Insolvency professional agencies, under the oversight of IBBI,
(v) The above has resulted into in very low recovery rates will develop professional standards, code of ethics and
and when default take place lenders seem to recover only exercise a disciplinary role over errant members leading to the
around 20% of the total debt on NPV basis. development of a competitive industry for insolvency
(vi) The weak rights available to the creditors make them professionals.
averse to lend. As a result, only a very few large
companies, who have low probability of failure are the Insolvency Information Utilities: The said utilities will
beneficiaries or recipients of lending in India. collect, collate and disseminate the information from listed
(vii) Further secured credit dominates the Indian market as companies and financial and operational creditors of
unsecured creditors don’t have any effective rights. In the companies. An individual insolvency data base is also
case of secured debt, credit analysis is relatively easy as proposed to be set up.
the same requires taking a view on the market value of
the collateral and as a result credit analysis as a Swift and efficient Insolvency and Bankruptcy Resolution
sophisticated analysis of the business prospect of a firm for Corporates, LLPs, Individuals and unlimited
has shriveled. partnerships: The Code has provisions for swift and efficient
insolvency and bankruptcy resolution not only for corporate
OBJECTIVES OF THE INSOLVENCY AND BANKRUPTCY structures but also for individual and unlimited partnerships. It
CODE, 2016 provides for time bound insolvency resolution process and in
The code seeks to consolidate the existing laws relating to case of failure of the same, a swift bankruptcy process for the
insolvency of companies, limited liability entities, unlimited above kinds of business structures.
liability partnerships and individuals, which are scattered in a
number of legislations, into a single legislation. The BLRC INSOLVENCY RESOLUTION PROCESS FOR COMPANIES
observed that the enactment of the code will provide greater AND LIMITED LIABILITY ENTITIES
clarity in law and facilitate the application of consistent and The code provides for initiation of the insolvency resolution
coherent provisions to different stakeholders affected by process by any financial creditor, operational creditor (including
business failure or inability to pay debt and will address the workmen, employees and statutory creditors whose past
challenges being faced for swift and effective bankruptcy payments are due) or the corporate debtor (CD) in the event
resolution. The committee further observed that the code of any default in payment of its debt obligation by the corporate
sought to improve the handling of conflicts between creditors debtor. Within fourteen days of the initiation of the process by
and debtors, avoid destruction of value, distinguish filing an application, the Adjudication Authority (AA) shall take
malfeasance vis-à-vis business failure and clearly allocate a decision about the admission or the rejection of the
losses in macroeconomic downturns. application and if admission is made, an Interim Resolution
Professional (IRP) is appointed within fourteen days of the
MAJOR PROVISIONS OF THE CODE date of admission, who immediately takes over the

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management control of the affairs of the business of CD and v. The public at large may also make proposals to buy the
that the powers of the Board of the CD are suspended. IRP company at a certain price. The same shall help transfer
then constitutes a Creditors Committee (CC), which consists of ownership and management of viable businesses on a
of all the financial creditors of the CD and that the CC appoints going concern basis to the resourceful entrepreneurs. As
a Resolution Professional (RP), who then takes over the entire a result, valuable productive assets of the distressed
responsibility of running the resolution process from the IRP. companies can be continued to be used for productive
RP formulates a resolution plan, which is placed before the uses.
CC for its consent. The resolution plans can also be submitted
by the creditors or by the CC. The resolution plan having the vi. All the stakeholders know that if no deal is struck within
consent of more than 75% of the financial creditors in value the specified period of 180 days (extendable by 90 days
terms is forwarded by the RP for approval by the AA. with the super majority consent of the financial creditors
and with the consent of AA), the company will be
The AA after examining the plan sanctions the same and that liquidated. The same will force the stakeholders to take
the sanctioned plan shall also be binding on the remaining early decision and will help avoid delays.
financial creditors and the operational creditors and
shareholders. In case, the plan is not supported / approved vii. The adjudicator will ensure that the prescribed resolution
by the financial creditors representing 75% or more of the process is followed i.e. all the financial creditors were part
financial debt, the CD will be ordered to be wound up. The of the creditors committee and that 75% of the financial
said process is to be completed within a period of 180 days, creditors have actually supported the resolution plan. The
though under certain circumstances, with the consent of more business decisions are taken by the financial creditors,
than 75% of the financial creditors, AA may extend the who are having the necessary financial stake and are well
resolution period by a period not exceeding 90 days. In case, equipped to take the said decisions, and that the AA is
the resolution process is not completed within the said time relieved of the same.
period, the CD is directed to be wound up by the AA.
viii. The provisions of IBC shall improve the rights of the
The Code also provides for a fast track insolvency resolution creditors and shall tilt the power to control the affairs of a
process to be completed within a period of 90 days, which can distressed company in favour of its creditors and as a
be extended by the AA at the request of the resolution result of the same, availability of credit in the market for
professional supported by a resolution of the CC, for a period business purposes shall improve. The same will improve
not exceeding 45 days. The fast track process applies to the level of activities in the economy and will increase the
certain categories of debtors. employment and national income.

ANALYSIS OF THE PROVISIONS RELATING TO THE ix. However, there is another side of the story too. Though,
CORPORATE INSOLVENCY RESOLUTION PROCESS the provisions of IBC shall improve credit availability in the
(CIRP) UNDER THE IBC market, they may discourage entrepreneurship to some
i. The CIRP process, as stated above, results in transfer of extent. The provisions improve the rights of creditors at
management from the CD to the insolvency professional the cost of the rights of the equity-holders. A small default
immediately after initiation of the insolvency resolution in payment of the dues of creditors may result in loss of
process and as a result, the promoters and management control over the business entity, though the default is due
of the CD will not have any incentive to prolong the CIRP to temporary liquidity crunch and the business is viable on
process. long term basis.

ii. The possession of the assets of the CD in the hands of x. The business entity shall be expected not to default to its
court appointed IP shall ensure that the assets / funds of creditors due to fear of loss of control, it will also get
the CD are not siphoned away during the resolution benefited as its customers / debtors shall also be forced
period. to make the payment in time and not to default otherwise
they may also lose control of their businesses. Overall, it
iii. The IP examines the transactions of the CD for the last appears that the business environment in the economy
two years to identify any illegal diversion of assets / funds shall improve and the capital formation and
and in case of any such diversion, applies to the AA for entrepreneurship alongwith the credit in the economy
cancellation / reversal of the transactions resulting in said shall improve substantially.
diversion.
PROPOSED BENEFITS TO THE INDIAN ECONOMY FROM
iv. The promoters of a company are allowed to file plans for THE BANKRUPTCY REFORMS:
the revival / buyback and that the same gives an In addition to the benefits as listed in an earlier para, the
opportunity to them to get the debt level of the company Indian economy shall have the following benefits as a result of
reduced to a sustainable level. the Bankruptcy reforms:

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One of the most important changes brought about by the
Code is that it provides for creation of a totally new class of
professionals i.e. the insolvency professionals, who will conduct
and run the entire insolvency process and will be regulated by
Insolvency and Bankruptcy Board of India. Insolvency professional
agencies, under the oversight of IBBI, will develop professional
standards, code of ethics and exercise a disciplinary role over
errant members leading to the development of a competitive
industry for insolvency professionals.
Availability of Finance to Businesses not having much can pull back his investment / loan, which will be a huge
tangible assets: - Due to prominence of secured credit in confidence booster while making the investment / lending.
India, a number of good business opportunities, which do not The same will result in higher foreign investment / loans in the
have much tangible assets, do not get finance. However, with economy.
improvement in creditors’ rights, the said businesses shall
also be able to raise finance. CONCULSION
The IBC, 2016 is a revolutionary step as it proposes to
Rescuing more number of distressed entities as going transform the credit market in India, which hitherto was
concerns: - Due to prominence of the secured credit in India, malfunctioning due to various problems and malpractices. The
any default in payment leads to taking up of control of the borrowers/debtors were able to avoid or delay making
assets and their sale by the lenders by invoking the provisions payments to lenders/creditors for years as the latter were not
of SARFAESI Act, 2002. The same, in many cases, destroys having any effective remedy to deal with defaults made by the
the value in the viable businesses which could have been former. With the improved rights of the lenders/creditors and
saved as a going concern. With improvement in credit especially the unsecured creditors, who can also now initiate
availability in the market and especially unsecured credit and the Insolvency Process, credit availability in the market is
with improvement in the rights of creditors under the IBC, it will likely to be improved and as a result cost of credit is likely to
be possible to save more number of units on going concern be reduced. The same will improve the competitiveness of the
basis by following the time bound insolvency resolution Indian businesses and will result in promoting the in economic
process. growth in the country.

Wider distribution of credit: - Due to weak rights of the However, the success of the IBC is dependent on its effective
creditors, the recovery rate in case of default has been very implementation including creation of the required Institutional
low and as a result the lenders prefer to lend in favour of a Infrastructure, appointment of competent and suitable persons
small set of very safe borrowers. The other businesses to implement the Code.
which do not get the finance become dependent on equity
financing which is very expensive making their projects as The success of the Code is also dependent on the development
unviable. Improvement in the rights of the creditors will of market for the distressed businesses where the new
increase the availability to finance to a larger number of entrepreneurs come forwards to take over the said businesses
entrepreneurs. for revival. During the last few years, it has been observed that
attempts of the lenders to either sell or affect change/transfer
Development of Corporate Bond Market: - In India the said of management of the distressed businesses especially the
channel for financing has been choked due to bad recovery industrial businesses have not yielded the desired results.
rates for them under the existing regimes. IBC would enable Other than the prevailing recessionary phase, non-availability
higher recovery rates for corporate bondholders which would of finance for the takeover/purchase of distressed businesses/
catalyze the development of bond market in India. The same assets is also a reason for failure of the sale/change of
would enable availability of cheaper finance to the businesses management attempts by the lenders. Putting the code into
and especially the infrastructure sector. effect, without development of market for the distressed
businesses/assets and without making provisions for
Increased Investor Confidence: - Under the IBC, any availability of finance for the same, may prove to be disastrous
foreign lender or investor can also cause a quick liquidation of as the majority of the distressed businesses shall be put into
the investee / borrower company in case of default of the liquidation for failure of Insolvency resolution process within
terms of the Shareholders Agreement / Loan Agreement and the prescribed 180 days’ period. CS

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ARTICLE

under the Bankruptcy Code and its

impact on the Companies Act
Bankruptcy is a legal proceeding in adopts an applicant-based approach,
which you can put your money in your providing for different mechanisms for
pant pocket and give your coat to your insolvency resolution for financial creditors,
creditors – Joey Adams operational creditors and corporate
applicants2. Further, while laying down

L
ooking at the debt rates and this classification for creditor triggered
defaults in India, one would not insolvency mechanisms, the Code leaves
be wrong in wondering if Joey the other winding up mechanisms to be
Adams were actually talking about the governed by the Companies Act, 20133
pathetic state in which Indian financial itself. Thus, insofar as creditor’s winding
institutions and other business houses saw up is concerned, it can be said that the
P.H. Arvindh Pandian* themselves in, under the previous regime Code is a complete code in itself, barring
Senior Advocate, High Court, Madras of Bankruptcy and Insolvency laws, which some exceptions, where support may be
arvindhpandianph@[Link]

The Insolvency and Bankruptcy Code marks a substantial

change in legislative policy relating to corporate insolvency,
wherein, creditors in general and financial creditors in
particular are substantially empowered to obtain debts due
to them. While the two-tier insolvency mechanism by default
is a welcome development in the law, the approach of the
Code, requiring the NCLT to admit insolvency resolution
process invoking applications to be admitted de hors
considerations regarding the sub-stratum of the company
may be problematic.
were ridden by inefficiencies, leaving taken from other legislations.
banks and business houses helpless
beyond an extent in recovering debts that The Code vide the Schedules appended
had gone bad. In a remarkable show of to it has amended several legislations
strength, the Parliament has passed the including the SARFAESI Act, the Limited
Insolvency and Bankruptcy Code, 2016 Liability Partnership Act, etc. While these
(also referred to as ‘Code’) on the 28th amendments make substantial changes
day of May, 2016, consolidating the laws to the way in which the current insolvency
relating to insolvency and bankruptcy in laws covered by those legislations work,
India. The Code seeks to induce efficiency this article shall closely look at the effects
within the insolvency and bankruptcy of the Code on creditors’ winding up under
law regime in India by separating the the Companies Act, 2013, the provisions
*The author thanks N.P. Vijay Kumar, Pawan Jhabakh commercial and judicial aspects of of which are yet to be notified.
and Avinash Krishnan Ravi, Advocates, High Court
of Madras for their assistance rendered in preparing
this article.
insolvency and bankruptcy processes.
Doing away with the different regimes
CLASSIFICATION OF
CREDITORS
1
Statement of Objects and Reasons (3), The Insolvency
and Bankruptcy Code, 2016 (hereinafter referred to which existed in different enactments,
as ''the code''
2
Section 7, 8 and 9, the code
the Code provides for a consolidated The term ‘creditor’ means any person to
3
Relevant provisions have yet to be notified by the mechanism for insolvency in India1. With whom a debt is owed4, i.e. a person to
Ministry of Corporate Affairs
4
Section 3 (10), the code
regard to corporate insolvency, the Code whom a liability or obligation in respect

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the time being in force and payable to the Central Government,
any State Government or any local authority10. Thus, the term
financial debt, defined under section 2(7) as against the term
operational debt under section 2(21) is wider owing to the use of
the words ‘includes’ in the former, which is absent in the latter.
The effect of this is that, anything that is not covered under the
term operational debt under the Code will be a financial debt and
the mechanism provided for the resolution of a financial debt will
be applicable for the same.

As indicated earlier, the Code envisages two different

mechanisms for financial and operational creditors, with the
one for the former more stringent than the latter. With regard
to financial creditors, the Act provides that a financial creditor
may, upon a default occurring at the end of a corporate debtor,
file an application to initiate the corporate insolvency resolution
process, upon which, the adjudicating authority, vis. the NCLT
shall be required to ascertain the existence of a default within
of a claim is due from any person5. This term includes a fourteen days from the records of an information utility, which
financial creditor, an operational creditor, a secured creditor shall be created under the Code11. For this purpose, the term
or an unsecured creditor6. While the difference of secured ‘default’ means non-payment of debt whether in whole or any
and unsecured creditors are reminiscent of the regime the part or instalment of the amount of debt12 and a financial creditor
Code seeks to replace, the difference between financial and may maintain an application under the Code if the default relates
operational creditors are new mechanisms and concepts to a default in respect of a financial debt owed not only to the
introduced under this Code. The term ‘financial creditor’ is applicant financial creditor but to any other financial creditor of
defined under the Code as any person to whom a financial the corporate debtor13. This relaxation of the locus standi rule,
debt is owed and includes a person to whom such debt has allowing financial creditors to sue on the debt of other financial
been legally assigned or transferred to7. The term financial creditors can be problematic. For example, the explanation would
debt means and includes money borrowed against the payment allow a person, whose debt is due only at a later point of time to
of interest; any amount raised by acceptance under any sue as a financial creditor basing an application on a default of
acceptance credit facility or its de-materialised equivalent; any debt due to an unrelated third party financial creditor, who might
amount raised pursuant to any note purchase facility or the now sue by itself. Thus, the Explanation to section 7 renders
issue of bonds, notes, debentures, loan stock or any similar itself to possible abuse and also of maintaining an apt cause
instrument; the amount of any liability in respect of any lease or of action. Further, the Code does not envisage a notice to the
hire purchase contract which is deemed as a finance or capital debtor with respect to financial debts, which are said to be due for
lease under the Indian Accounting Standards or such other the purposes of the resolution process, which enables financial
accounting standards as may be prescribed; receivables sold debtors helpless to a great degree when the interest rates are
or discounted other than any receivables sold on nonrecourse usurious or are disputed. While the information utility may be
basis; any amount raised under any other transaction, including a check in so far as disputed rates of interest are concerned,
any forward sale or purchase agreement, having the commercial questions such as usury may be difficult to raise with respect
effect of a borrowing; any derivative transaction entered into in to financial debts.
connection with protection against or benefit from fluctuation in
any rate or price and for calculating the value of any derivative Upon a finding of default, the NCLT is required by law to
transaction, only the market value of such transaction shall be immediately appoint an interim insolvency resolution professional
taken into account; any counter-indemnity obligation in respect under this Code14. It may be noted that the use of the word ‘shall’
of a guarantee, indemnity, bond, documentary letter of credit or creates a mandatory obligation in law for the NCLT to admit such
any other instrument issued by a bank or financial institution and application and appoint the resolution professional, irrespective
others8. On the other hand, the other kind of creditors recognised of the solvency of the company or there being any bona fide
under the Code are operational creditors, which means a person defense, upon a mere default occurring. Thus, the sub-stratum
to whom an operational debt is owed and includes any person of the company is no longer a relevant criterion for the admission
to whom such debt has been legally assigned or transferred9. of an insolvency application, which shall be admitted, even on
The term “operational debt” means a claim in respect of the the failure to pay a part of an instalment of a debt. Thus, unlike
provision of goods or services including employment or a debt creditor’s winding up mechanism existing as of today, which
in respect of the repayment of dues arising under any law for was not regarded debt recovery mechanism ,has been replaced
5
Section 3 (11), the code 10
Section 5 (21), the code
6
Section 3 (10), the code 11
Section 7 (1) & Section 7 (4), the code
7
Section 5 (7), the code 12
Section 3 (12), the code
8
Section 5 (8), the code 13
Explanation to Section 7 (1), the code
9
Section 5 (20), the code 14
Section 7 (5)(a), the code

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ARTICLE

by the insolvency resolution mechanism of the Code, which for provides for winding up under the Companies Act by passing a
all purposes acts as a debt recovery mechanism parallel to the special resolution. However, as noted above, the chapter relating
mechanism set up under the SARFAESI Act. to voluntary winding up under the Companies Act, 2013 has been
repealed. Thus, voluntary winding up in cases where defaults in
With regard to operational creditors, the mechanism set out in debt exist shall be covered by the Code whereas other voluntary
the Code is not automatic and provides scope for disputes to winding up mechanisms which require the special resolution
be raised, upon which, the mechanism will not set forth. Section of the shareholders are covered by Part I of Chapter XX of the
8 of the Code provides that an operational creditor may, on Companies Act, [Link] position however needs more clarity,
the occurrence of a default, deliver a demand notice of unpaid which the courts ought to provide.
operational debtor copy of an invoice demanding payment of
the amount involved in the default to the corporate debtor, upon
INSOLVENCY RESOLUTION MECHANISM VIS A VIS
which, the corporate debtor within 10 days of the receipt of WINDING UP PROCESS/ LIQUIDATOR POWERS
such notice, shall be required to notify the operational creditor Under the Code, it is seen that under section 7, 9 & 10, an
regarding the existence of a dispute, if any, and record of the interim insolvency resolution professional can be appointed by
pendency of the suit or arbitration proceedings filed before the the NCLT, who can then be replaced by an insolvency resolution
receipt of such notice or invoice in relation to such dispute or professional appointed by the Committee of Creditors17. The Code
notify previous repayment of the said sum with proof. A failure to under section 21 (2) refers to a committee of creditors comprising
do so, at the end of the corporate debtor will entitle the operational of only financial creditors and not refer to the operational
creditor to file an application for initiation of insolvency resolution creditors. The question by virtue of this omission which arises
process, which the NCLT shall only admit when no notice of is whether the constitution of the committee of creditors is only
dispute has been received by the operational creditor or there for financial creditors and not operational creditors, the impact
is no record of a dispute with the information utility. Thus, with of which would be that there would no committee of creditors
respect to operational debt, the NCLT has a greater leeway to nor would there be a possibility of a resolution plan. The Code
see if there is any pending dispute as regards the payments provides that upon the appointment of an interim insolvency
sought, but if the same is not raised within 10 days of the demand resolution professional, the NCLT shall order a moratorium18,
notice, then that itself would entitle the operational creditor to prohibiting the institution of suits or continuation of pending
get the application admitted and an interim insolvency resolution suits or proceedings against the corporate debtor including
professional appointed. Hence, it is advisable to always reply execution of any judgment, decree or order in any court of law,
within 10 days of the date of demand so as to avoid admission tribunal, arbitration panel or other authority; prohibiting the
of an application under section 9, with respect to operational corporate debtor from transferring, encumbering, alienating
creditors. However, it is submitted that the Code while requiring or disposing of any of its assets or any legal right or beneficial
a notice of dispute to be given, does not empower the NCLT to interest; prohibiting any action to foreclose, recover or enforce
verify the legitimacy of the dispute raised. Thus, the mechanism any security interest created by the corporate debtor in respect
of the Code may be stalled by merely raising a dispute, whether of its property including any action under the SARFAESI
bona fide or not and the Code provides for no discretion or power Act, 2002; and prohibiting the recovery of any property by an
to the NCLT to verify these aspects of the dispute raised which owner or lessor where such property is occupied by or in the
may leave the operation creditors remediless of obtaining a relief possession of the corporate debtor. Thus, the proceedings under
under the Code and constraining the said operational creditor this Code, in so far as they come parallel to proceeding under
to approach a Civil Court of law. the SARFAESI Act, shall supersede the SARFAESI Act, which
shall be kept in abeyance until the proceedings under this Act
VOLUNTARY WINDING UP are completed. The interim insolvency resolution professional,
Apart from the insolvency resolution mechanisms being set appointed in these attendant circumstances, shall be vested
up by two types of creditors mentioned above, the Code also with the powers to deal with the affairs of management of the
provides for voluntary winding up under the Code by the company; with the powers of the board of directors, etc19. Further,
corporate applicant, which means a corporate debtor; or a such interim professional is required by the Code to collect all
member or partner of the corporate debtor who is authorised information relating to the assets, finances and operations of
to make an application for the corporate insolvency resolution the corporate debtor for determining the financial position of the
process under the constitutional document of the corporate corporate debtor; receive and collate all the claims submitted
debtor; or an individual who is in charge of managing the by creditors to him; constitute a committee of creditors; monitor
operations and resources of the corporate debtor; or a person the assets of the corporate debtor and manage its operations
who has the control and supervision over the financial affairs until a resolution professional is appointed by the committee
of the corporate debtor15. By doing so, the Code also repeals of creditors; take control and custody of any asset over which
in the entirety Part II of Chapter XX of Companies Act, 2013, the corporate debtor has ownership rights as recorded in the
which deals with voluntary winding [Link], it is unclear balance sheet of the corporate debtor; and to perform several
whether voluntary winding up is entirely covered by this Code other functions, which the central government may prescribe.
alone. The amended section 271 of the Companies Act, 2013
17 Section 22, the code
15 Section 10 & Section 5(5), the code 18 Section 14, the code
16 Clause 15A of Schedule 7, the code 19 Section 17, the code

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Of particular interest is the power of the interim professional the law, at stage 2 provides for winding up of the company25.
to continue with the management of the corporate debtor as a This mechanism, which previously existed with respect to sick
going concern20, which power was not previously available to the companies, is now available for all companies in general, thus
provisional liquidator appointed in the winding up proceedings requiring the sick companies related chapter in the Companies
conducted under the Companies Act, 195621. By virtue of Act to be repealed in its entirety by the [Link] two stages of
section 450 and 457 of the Companies Act, 1956, the liquidator the new mechanism of insolvency resolution deserve discussion
and the provisional liquidator did not possess the power to run in greater detail:
the company as a going concern for the benefit of the creditors,
but were limited to carry on the business of the company so Stage 1: Resolution Plan and its Approval
far as may be necessary for the beneficial winding up of the Section 29 of the Code provides that the resolution professional
company22. However, under the Code, the power to continue should prepare an information memorandum in such form
the business of the company is not limited to enabling beneficial and manner containing such relevant information required by
winding up, but extends generally to protect and preserve the the resolution applicant to make the resolution plan for the
value of the property of the corporate debtor and manage the corporate debtor, which shall include the financial position of
operations of the corporate debtor as a going concern. Further, the corporate debtor, all information related to disputes by or
the insolvency resolution professional shall not exercise any against the corporate debtor and any other matter pertaining
discretion with regard to whether the company should be to the corporate debtor for formulating a resolution plan. The
run as a going concern or not, but rather is mandated by law details of what information shall be relevant for such purpose
to seek to run the company as a going concern, unless the may be prescribed by the Insolvency and Bankruptcy Board,
situation be such that the endeavour on all accounts ought to established under this [Link] on the information provided
fail. To this end, the Code authorises the professional to enter under section 29, resolution applicants may submit a resolution
into contracts on behalf of the corporate debtor or to amend or plan to the resolution professional, which shall provide for the
modify the contracts or transactions which were entered into payment of the costs of the insolvency resolution process; for
before the commencement of corporate insolvency resolution the repayment of financial and operational debts at amounts no
process and to raise interim finance provided that no security lesser than that which would be payable upon liquidation under
interest shall be created over any encumbered property of the section 53 of the Code; for the management of the affairs of the
corporate debtor without the prior consent of the creditors whose corporate debtor post the approval of the resolution plan and
debt is secured over such encumbered property23. This power for the supervision and implementation of such plan28. Further,
to raise interim finance coupled with the general power to take this power to suggest resolution plans is in addition to the
all necessary action to keep the corporate debtor as a going power under the Companies Act to enter into compromises and
concerns indicates to the fundamental change in approach arrangements, which power has been retained post the Code
of legislative policy in comparison with the previous regime, as [Link], during the pendency of proceedings under the
wherein, the mere appointment of a provisional liquidator would Code, parallel applications under section 230 of the Companies
de jure stop the company being treated as a going concern, Act may also be filed. However, the mechanisms taken up under
as against the new legislative policy wherein, even post the each enactment will be governed by that particular enactment
appointment of the insolvency resolution professional, the alone, unless the Act or the Code provide otherwise. Hence, it is
professional is charged with the duty of keeping corporate debtor submitted that there can be no overlap of provisions with respect
a going concern by all means necessary. This also extends to insolvency/ debt reworking mechanisms, unless specifically
to the resolution professional appointed by the committee of provided for in the enactment or pleaded for in the petition itself.
creditors, who is duty bound to preserve and protect the assets
of the corporate debtor, including the continued business If the plan confirms with the aforesaid requirements, per section
operations of the corporate debtor, for which purpose, she 30 (2), then the resolution professional shall put the resolution
shall exercise all necessary powers enlisted under section plan to vote in the committee of creditors, who may approve the
25 of the Code, including the power to raise interim finances plan by a vote of not less than seventy-five per cent of voting
subject to the approval of the committee of creditors and to share of financial [Link], if there are four creditors,
invite prospective lenders, investors, and any other persons to namely A, B, C and D, out of which A is owed Rs. 90 out of 100
put forward resolution plans24. and B, C and D are owed the remaining Rs. 10, then under the
Code it appears that the vote of A, having more than 75% of
This is a part of the larger policy shift in the legislation wherein, the voting share would suffice to approve the resolution plan.
instead of a single tier winding up mechanism, in cases of It may be noted that this voting rule is universal in the code,
creditor’s winding up, the law now provides for a two tier in so far as the meeting of creditors is concerned and hence
mechanism, wherein, first the resolution profession, under the is a marked departure from the rules in this regard, under the
aegis of the NCLT shall put forth a resolution plan to repay the Companies Act. Upon approval by the committee of creditors, the
debts of the corporate debtor, upon the failure of which alone,
25 See Generally Chapter II & Chapter III of the code
20 Section 20, the code 26 Clause (8) of Schedule 7 of the code
21 See Generally Section 450 & 457 of the Companies Act, 1956 27 Section 29 the code
22 Section 457 (2)(b), Companies Act, 1957 28 Section 30 the code
23 Section 21, the code 29 Section 230, Companies Act, 2013 read with schedule of the code
24 Section 25, the code 30 Section 31, the code

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resolution plan shall be put before the NCLT, which shall, upon from the purview of the liquidation estate assets37. Further, in
satisfaction that the criteria mentioned in section 30(2) are met, addition to the powers held by the liquidator under the previous
shall approve the resolution plan, which shall then be binding on regime, the Code provides for special informational powers,
all concerned parties including the corporate debtor, creditors, wherein, the liquidator shall have access to any information
guarantors and other stakeholders involved in the resolution plan. system, for the purpose of admission and proof of claims and
Once approved, the resolution plan may not be set aside by the identification of the liquidation estate assets38. It is submitted
NCLAT, on any ground other than the five grounds mentioned that this is a welcome development in the law, which empowers
in section 61(3). However, under section 61(3)(v), the number the liquidator to have access to necessary information for
of grounds may be increased by the Board. the purpose of determining claims, which would ensure that
unwarranted claims are not granted or at the least, time is not
Stage (ii): Liquidation wasted in trying to refute unwarranted claims. While doing so,
The Code provides for the NCLT to order liquidation of the to safeguard the interests of the creditors, the Code provides
corporate debtor in a number of situations that are enumerated for a statutory appeal to the NCLT, against orders of the
in section 33 of the Code. It provides that the NCLT shall pass liquidator rejecting their claims, which is a marked difference
an order of liquidation when (i) prior to the completion of 180 from the previous regime where no special appeal existed for
days as prescribed under section 12 of the Code, it does not this purpose39. Finally, the liquidator is also empowered to
receive a resolution plan or rejects the plan so given under make applications to avoid extortionate credit transactions,
section 3131;(ii) if the committee of creditors do not approve either financial or operational, made within two years preceding
of the resolution plan and decide to liquidate the corporate the insolvency commencement [Link] the NCLT is
debtor;and (iii) where the corporate debtor32 contravenes the convinced that a transaction so made is extortionate in nature,
approved resolution plan, upon which an aggrieved party makes it shall be required to pass orders restoring status quo ante
an application for liquidation33. It may be noted that there is no or to set aside the whole transaction or to modify the terms
discretion for the NCLT as to whether an order for liquidation of the transactions or to require any person to return sums of
may be passed or not. Once any of the grounds mentioned in money received or to create any security interest with respect
section 33 are satisfied, the NCLT ‘shall’ be required to pass an to such [Link] is submitted that this power ought to be used
order liquidating the corporate debtor. sparingly by the court as it is drastic in nature and would impede
into otherwise arm’s length transactions, which shall fall within
Once a liquidator is appointed, then the mechanism set forth the exclusive domain of party autonomy and freedom of trade
by the Code in Chapter III shall take over. The provisions in and commerce.
this Chapter are akin to the powers of the liquidator under the
Companies Act, 1956 and Companies Act, 2013, with only a CONCLUSION
few notable differences. Primarily, once an order under section Hence, the Code marks a shift from debtor centric liquidation
33 is made, appointing a liquidator, then an appeal against such process to creditor determined liquidation process. The idea of
order shall only be on limited grounds of material irregularity giving the debtor innumerable chances to survive with the fond
or fraud in relation to the liquidation order34. It is settled law hope that it will revive and rise as a phoenix from the ashes
that once the grounds of appeal are limited, then there can be is done away with. In the present regime, businesses that do
no grounds beyond what is provided for in the statute for the not perform well will perish faster, making resources available
purpose of appeal, owing to which, the corporate debtor, once for other entrepreneurs, than merely prolonging the inevitable
subjected to liquidation may be constrained with limited grounds death, which drags. It should be noted that the Code marks
to appeal. Further, in relation to appointment of liquidator under a substantial change in legislative policy relating to corporate
the Companies Act, 2013, for the grounds mentioned in the insolvency, wherein, creditors in general and financial creditors
amended section 271, the Companies Act now provides that in particular are substantially empowered to obtain debts due
there cannot be any stay of the winding up order once it is made to them. While the two-tier insolvency mechanism by default is
and the liquidator is appointed35. a welcome development in the law, the approach of the Code,
requiring the NCLT to admit insolvency resolution process
Further, the Code introduces the concept of a liquidation estate invoking applications to be admitted de hors considerations
wherein all the assets mentioned in section 36(3) of the Code regarding the sub-stratum of the company may be problematic.
shall form a part of the liquidation estate with respect to the The fate of the Code rests in the change in the mindset of the
corporate liquidator. The liquidator shall, while dealing with the creditors and the work that insolvency professionals render as
liquidation estate, act as a fiduciary to the creditors as a whole36. creditors cannot always have the cake in full. They will also
The Code also recognises the concept of beneficial interest have to make sacrifices in larger good of corporates and public
and trust ownership amongst others, which are excluded and enjoy its fruit in a time bound manner. CS

31 Section 33 (1), the code 37 Section 36(4), the code

32 Section 33 (1)(b), the code 38 Section 37 the code
33 Section 33(1)(c), the code 39 Section 42 the code
34 Section 61 (3), the code 40 Section 50 the code
35 Section 289, Companies Act, 2013 per clause 15 of schedule 7 of the code 41 Section 51 the code
36 Section 36(2), the code

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Track Corporate Insolvency Resolution Process
I
ndia is one of the youngest Republics also meant demands on a much wider
in the world, with a high concentration and deeper base of knowledge, on both
of the most dynamic entrepreneurs matters of the economics of the problem
and even then the growth of the economy as well as the legal framework. Research
was crippled by an environment that took contributions and real world knowledge on
the longest times and entailed highest the economics and the legal framework
costs by world standards to resolve any were gathered from the many policy
problem that arose while repaying dues on papers, workshops and a conference that
debt. For a young emerging economy with was conducted during the period of the
the entrepreneurial dynamism of India, Committee’s working.
this was indeed a troublesome problem.
Hemant K Sharma India’s dynamism not only needed reforms, The Central Government introduced an
but reforms done urgently. For this, the exhaustive Insolvency and Bankruptcy
Advocate, Partner, Government constituted a Committee to Code, 2015 on individual insolvency,
Sastra Legal, New Delhi focus on a two-phase mandate over its insolvency of limited liability partnerships,
hemant@[Link] tenure. unlimited liability partnerships and

It is believed that the benefits of the Insolvency and

Bankruptcy code shall start flowing in after three to five
years from now. The main challenge will be creating a large
pool of insolvency professionals who will help with the fast
implementation of the law. The new regulators will also need
to draft procedural rules for insolvency professionals and
information utilities among others.

In the first phase, the Committee had corporate insolvency.

to examine the existing bankruptcy
framework, and whether there were Bankruptcy refers to a legal state in
policy and legal changes that could yield which an individual/organization sends an
immediate effect. The focus was on the application to the relevant court wherein
problems of insolvency and bankruptcy he/it declares himself/itself as insolvent
under the Companies Act, 2013. The due to his/its inability to pay off debts and
outcome of the deliberations of the expenses, seeking to be declared as a
Committee led to the Interim Report of bankrupt. The banking industry in India
the Committee that was put out for public was in a state of crisis. The stressed
comments at the end of February, 2015. assets were almost Rs 10 trillion of loans
including advances of whose terms have
The task of the committee in the Second been restructured, gross bad loans and
Phase was to create a uniform framework written-off accounts which rose to 14.5%
that would cover matters of insolvency of banking sector loans at the end of
and bankruptcy of all legal entities and December 2015.
individuals and to save those entities
with a dominantly financial function. The Insolvency and Bankruptcy Code
This shifted the mandate to a much which has now been passed by both the
wider problem that included micro, Lok Sabh and the Rajya Sabha is said to
small and medium enterprises, sole be the “biggest economic reform” that will
proprietorships and individuals. This promote jobs, make availability of credit

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The new code aims at speedy (IP) as intermediaries to oversee the IRP, replacing the debtor’s
existing management and operate the company as a going
winding up of insolvent concern upon initiation of an IRP; give creditors overriding

companies, relocating capital authority to approve terms of any restructuring package; and
limit duration of IRP to maximum of 180 days, after which a
profitably and lowering the Non- company will be automatically liquidated.

Performing Assets. Considering FAST TRACK CORPORATE INSOLVENCY

the bad-loan crisis in the RESOLUTION PROCESS
banking sector, the Insolvency The aim of the Insolvency and Bankruptcy code is to conclude
the procedure within half of the default time period specified
and Bankruptcy code will prove under the Code. The person or entity seeking the fast relief will

to be a powerful reform that will have onus on the process at set-off and that person or entity that
sets-off the Fast-track process must support that the case is fit for
be beneficial to all the sectors of the Fast-track. Therefore, whosoever fills the application for fast

the society. track process under Chapter IV (Section 55) of the Insolvency
and Bankruptcy Code will have to file the application along with
the proof of the existence of default as evidenced by records
and ensure timely resolution of financial distress of companies. available with an information utility or such other means as may
Easy exit option for sick firms and insolvents will help improve be specified by the Board to establish that the corporate debtor
doing business in India and the process of claim by the creditors is eligible for fast track corporate insolvency resolution process.
will encourages financial institutions to extend credit facilities thus
strengthening the financial markets with increased availability PROCEDURE IN BRIEF
of credit for business. n The fast track corporate insolvency resolution process shall
be completed within a period of ninety days (90) from the
The intention behind the introduction of the new law is to insolvency commencement date and there can be only
encourage entrepreneurship, availability of credit, and balance one extension of forty-five days (45). The adjudicatory
the interests of all stakeholders by strengthening and modifying authority will have the power to extend the process only
the laws relating to reorganization and insolvency resolution if an application is filed by the resolution professional on
of corporate persons, partnership firms and individuals in a the instructions of the creditors by a resolution passed at a
time bound manner and for maximization of value of assets meeting with seventy-five percent votes of the committee
and matters of such persons connected therewith or incidental of creditors.
thereto. n The application can be filed in respect of corporate debtors
with assets and income below a level or corporate debtors
According to a report from Nomura, before the introduction and with such class of creditors or such amount of debt, which
implementation of the New Insolvency and Bankruptcy Code,, will be notified by the Central Government after enforcement
it took an average of 4.3 years to resolve insolvency in India of the I&B Code. Central government is at liberty to include
and the recovery rate of debt was very low as compared to such other category of corporate persons to have application
other countries. India ranked 136 in the World Bank’s resolving of the fast track process by notification.
insolvency ranking. China ranks 55 in the World Bank’s resolving n The process of registration is similar to that of the default
insolvency ranking and it takes 1.7 years to resolve insolvency. process of insolvency. Fast-track corporate insolvency
resolution process and the procedure for conducting a
The new law introduces a time limit on the bankruptcy process corporate insolvency resolution process are more or less
which will help India improve its World Bank insolvency ranking.. similar under this Code. Interim Resolution Professional is
In the case of a default, the time-limit is 180 days, within which in charge of collection of claims, monitoring the entity and
the resolution has to be completed, which can be extended by the creation of a creditors committee. Once the creditors
90 days by the adjudicator, depending on the process. committee is formed, the Resolution Professional verifies
the submitted liabilities. The Resolution Professional has the
The new code aims at speedy winding up of insolvent companies, same responsibilities as in default procedure but the only
relocating capital profitably and lowering the Non- Performing difference is that the Resolution Process is for a shorter time
Assets. Considering the bad-loan crisis in the banking sector, period.
the Insolvency and Bankruptcy code will prove to be a powerful n The NCLT under Chapter II, Section 7 of the Insolvency
reform that will be beneficial to all the sectors of the society. The and Bankruptcy Code appoints the Resolution Professional
Insolvency and Bankruptcy Code is set to introduce a unified to administer the IRP, whose main function is to take over
framework to replace the current collection of separate laws the management of the corporate borrower and operate its
drafted in piecemeal fashion across overlapping jurisdictions; business as a going concern under the broad directions of
reduce threshold for creditors to invoke the Insolvency Resolution a committee of creditors.
Process (IRP); introduce third-party Insolvency Professionals n Resolution Professional identifies the financial creditors and

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constitutes a creditors committee. The Operational creditors
are allowed to attend meetings of the committee but are
‘Insolvency Professionals’ are
not given the voting power. Each decision of the creditors class of regulated persons who
n
committee requires a 75% majority vote.
Decisions of the creditors committee are binding on
are the first tower of strength of
the corporate debtor and all its creditors. The creditors the Institutional infrastructure.
committee considers the proposals for the revival of the
debtor and decides whether to proceed with a revival plan
They play an important role
or liquidation within a period of 180 days (subject to a one- in the smooth working of
time extension by 90 days). Meanwhile, anyone can submit a
revival proposal, but it must necessarily provide for payment
the bankruptcy process. They
of operational debts to the extent of the liquidation waterfall. are regulated by ‘Insolvency
n Under the Code, a corporate debtor may be put into
liquidation in the following scenarios:
Professional Agencies’.
(i) If 75% majority of the creditor’s committee resolves to
liquidate the corporate debtor at any time during the process can be filed by a creditor or corporate debtor as the
insolvency resolution process; case may be, along with—
(ii) If the creditor’s committee does not approve a resolution (a) the proof of the existence of default as evidenced by
plan within 180 days (or within the extended 90 days); records available with an information utility or such other
(iii) If the NCLT rejects the resolution plan submitted to it means as may be specified by the Board; and
on technical grounds; or (b) such other information as may be specified by the Board to
(iv) If the debtor contravenes the agreed resolution plan and establish that the corporate debtor is eligible for fast track
an affected person makes an application to the NCLT corporate insolvency resolution process. Manner of initiating
to liquidate the corporate debtor. fast track corporate insolvency resolution process.
n Once the NCLT passes an order of liquidation, a moratorium
is imposed on the pending legal proceedings against the ADJUDICATING AUTHORITY UNDER
corporate debtor, and the assets of the debtor (including THE CODE, 2016
the proceeds of liquidation) vests in the liquidation estate. The National Company Law Tribunal is the adjudicating authority
n Any person who initiates the insolvency resolution process or for Corporates, whereas for Individuals and Partnerships Firms,
liquidation proceedings fraudulently or with malicious intent the Debt Recovery Tribunal constituted under sub- section (1)
for any purpose other than for the resolution of insolvency, of section 3 of the Recovery of Debts Due to Banks and Financial
or liquidation, then the adjudicating authority may impose Institutions Act, 1993 is the Adjudicating Authority.
upon such person a penalty which shall not be less than Rs
1 lakh, but may extend to Rs 1 crore. The National Company Law Appellate Tribunal acts as an
Appellate Authority against the orders passed by National
DEADLINE SET UNDER INSOLVENCY AND Company Law Tribunal.
BANKRUPTCY CODE 2016
n Control shifts from the shareholders/promoters to a No civil court or authority has the jurisdiction to entertain any
committee of creditors When a corporate entity defaults suit or proceedings in respect of any matter on which National
on its debt, who have 180 days (extendable by 90 days in Company Law Tribunal or the National Company Law Appellate
deserving cases) to evaluate proposals from various players Tribunal has jurisdiction under this Code.
about resuscitating the company or taking it into liquidation.
n A fast track insolvency resolution process is provided for Any person aggrieved by an order of the National Company Law
corporates and LLPs. It is an enabler for start-ups and Appellate Tribunal can file an appeal to the Supreme Court on a
small and medium enterprises (SMEs) to complete the question of law arising out of such order under this Code within
resolution process in 90 days (extendable to 45 days in forty-five days from the date of receipt of such order.
deserving cases).
n Applications for fast track corporate insolvency resolution From June 1 2016, the National Company Law Tribunal
process can be made in respect of the following corporate (NCLT) is the adjudicating Authority for companies and limited
debtors, namely:— liability partnerships, and the Debt Recovery Tribunal (DRT)
(a) Corporate debtor with assets and income below a level as for individuals and partnership firms which will be adequately
may be notified by the Central Government; or strengthened so as to achieve world class functioning of the
(b) Corporate debtor with such class of creditors or such amount bankruptcy process. Fast track insolvency resolution process
of debt as may be notified by the Central Government; or will help start-ups and small and medium enterprises (SMEs)
such other category of corporate persons as may be notified to complete the resolution process in 90 days (extendable to 45
by the Central Government. days in deserving cases).

These applications for fast track corporate insolvency resolution INSTITUTIONAL INFRASTRUCTURE - WHO WILL BE

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BENEFITTED AND HOW IS IT GOING TO AFFECT THE CONCLUSION

MARKET? With the implementation of the Insolvency and Bankruptcy code,
the problem of delay will be overcome since the quick disposal
‘Insolvency Professionals’ are class of regulated persons who are of cases have maximized the recovery amount because of the
the first tower of strength of the Institutional infrastructure. They strict timelines within which the case has to be disposed off. The
play an important role in the smooth working of the bankruptcy specialized Insolvency Professionals help in guiding through the
process. They are regulated by ‘Insolvency Professional process. The benefits of the Insolvency and Bankruptcy code will
Agencies’. A new industry of `Information Utilities’ is the second help in improving the stressed assets easily and speedily thereby
tower of strength of the institutional infrastructure, where enabling the higher flow of capital in the economy. Moreover, it
Information utilities store facts about lenders and terms of lending will help the companies to wind up failed businesses and bring
in electronic databases and eliminate delays and disputes about India on a par with developed nations in terms of resolving
facts when default does take place. bankruptcy issues.

Adjudication of institutional infrastructure is the third tower of The perspective of the new law is to boost entrepreneurship and
strength. The NCLT is the forum where firm insolvency is heard innovation. Some business enterprises will always fail, but their
and DRTs is the forum where individual insolvencies are heard. failure will now be handled promptly and smoothly without any
These institutions, along with their Appellate bodies, viz., NCLAT delay. Entrepreneurs and financers are able to move on, instead
and DRATs are adequately strengthened so as to achieve world of being burdened with the wrong business decisions of the past.
class functioning of the bankruptcy process. The Insolvency and Bankruptcy Code is an exhaustive reform,
which will prove to be a break-through to the functioning of the
The fourth pillar of institutional infrastructure is a regulator viz., credit market. The passing of this Code and implementation of
‘The Insolvency and Bankruptcy Board of India’. This body will the same will give a big boost to ease of doing business in India
have regulatory over-sight over the Insolvency Professional, and help India to become one of the world’s best insolvency
Insolvency Professional agencies and information utilities. regimes. CS

APPOINTMENT

KEY POSITION IN GVFL

We are one of the pioneer Venture Capital Companies of India. We are an independent, autonomous Board managed company
based in Ahmedabad, Gujarat, India. GVFL has successfully managed seven Funds which have supported 81 companies.
GVFL has launched a Start-up Fund to invest in early stage companies across sectors. We are currently investing in growth
capital across India from Golden Growth Fund. We require:

MANAGER / DY. MANAGER (COMPANY SECRETARY)

The candidate should be a qualified Company Secretary. He should have 5- 10 years of experience. Knowledge of legal matters
will be an added advantage.

He/she should be thorough in secretarial matters including the new Company law, commercial & economic legislation, SEBI
guidelines, FEMA provision etc. He/she should have handled Board independently and should have good drafting skills, effective
communication & interpersonal skills.

Key Responsibilities: The incumbent would be responsible for conducting Board meetings, General meetings, drafting of
minutes on time, filling forms with various statutory authorities, drafting agreements, memorandum of understanding, replies to
notices and monitoring legal matters of the company if required.

Please send in your CV within 07 days to careers@[Link]

GVFL Limited
1st Floor, Premchand House Annexe, Behind Popular House, Ashram Road, Ahmedabad – 380 015
Phone: 079-40213900 / 26589985 Fax: 079-26585226 Email: careers@[Link] Website: [Link]

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Information Utilities – Provider of Level Playing

ARTICLE
field in Insolvency and Bankruptcy Process
INTRODUCTION

T
he Insolvency and Bankruptcy Insolvency and Bankruptcy
Code, 2012 (“Code”), envisages Board of India (“IBBI”)
formation of two new industries,
viz: Information Utilities (“IU”s) and
Insolvency
Insolvency Professionals (“IP”s), Profes-
both being positioned as competitive Informa sional
tion Agency
industries. These two industries can be (“IPA”) &
Utilities
construed to be the two pillars in the (“IU”) Insolvency
porch way to the edifice of insolvency Profes-
sional
resolution, and liquidation process (“IP”)
under the Code. This article is about the
IUs and how they would provide a level
playing field in the insolvency resolution National Company Law Tribunal (NCLT) and Debt
S Eshwar, FCS process. Recovery Tribunal (DRT)

Practicing Company Secretary

Chennai Under the present scheme of things, financial information about
seshwar@[Link]
non-corporate borrowers is available only with the income-tax
department and is not publicly accessible even under the Right to
Information Act, 2005. The ‘information utilities’ contemplated
under the Insolvency and Bankruptcy Code will help to overcome
this deficiency. This article examines how information utilities
will provide a level playing field in insolvency proceedings.

STRUCTURE OF THE ENTITIES terms of the role of the IUs. In Chapter V of

INVOLVED UNDER THE CODE the Code in Sections 209 to 216, the broad
framework for formation, governance,
At the base of the structure are the two and core services of IUs (i.e) accepting
adjudicating bodies National Company Law information submission, storing and
Tribunal (“NCLT”) and the Debt Recovery publishing such information, is legislated.
Tribunal (”DRT”), the IUs and the IPs These are enabling provisions to facilitate
are the pillars, with the Insolvency and the development of the IUs as an industry
Bankruptcy Board of India (“IBBI”) playing that will develop over a period of time.
a very important role of regulating the two
new players and also by making regulations The power to licence every IU is vested
with the objective of (a) high recovery rates; with the IBBI, which will also exercise
(b) low delays from start to end; and (c) powers to regulate them, including the
creating the perception of swift bankruptcy manner of collecting and storing of
process, “….including mechanism for time information, and for providing the access
bound disposal of the assets of the corporate of such data.
debtor or debtor” [clause (r) of sub-section
(1) of section 196]. Figure below represents One gets an insight into the IUs under only
the entities involved. on a perusal of the Report of the Bankruptcy
PROVISIONS IN THE CODE Law Reforms Committee (“BLRC”), which
recommended the enactment of the Code
ON IUS and also drafted the draft Code to be
The Code offers very little information in considered by the Parliament.

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Under the present system, not

all information about a borrower
is available in public domain,
which can be accessed by the
persons who are concerned about
the solvency of the borrower.
This creates an asymmetry of
information, and such asymmetry,
acts a barrier during negotiations
between the borrower and the
lenders, and thereby delaying
the swiftness in the process of Interfaces (“APIs”), which will enable third party software
insolvency resolution or in the development, which software can be used to query all IUs, and
decision making of liquidation of assemble the information available with all IUs about one borrower
in real time.
the borrower. FILING WITH THE IUS BY FINANCIAL CREDITORS
NEED FOR INFORMATION UTILITIES Sub-section (2) of section 215 of the Code, makes it mandatory for
The 2015 Doing Business Report of the World Bank, ranked India, all financial creditors to a borrower to file financial information and
at 137 of the 189 economies, in resolving insolvency, as it identified also information relating to the assets in respect of which a security
that it took 4.3 years as the average time taken in winding-up a interest in created. The report of the BLRC states that the filing of
business that is unable to pay its debts, at a cost of 9% of the assets, financial information and information about the assets, would have
and yet resulting in only recovering 16.89 paise to every rupee lent be done by an electronic means, with the borrower co-signing the
(25.7 cents to every dollar), as compared to Singapore being ranked information in the format to be specified by IBBI. Such filing has
first in the ease of doing business, where it takes 0.8 years, at a to be done at the time of initiation of the financing and every time
cost of 3% of the assets, and yielding a recovery of 89.7 cents to there is a modification to such financing.
every dollar. The BLRC, identified that one of the reasons for this
delay, was the non-availability of accurate and undisputed set of The information to be filed will pertain to the amount of liability under
facts about existing credit, collateral that has been pledged, etc. the financing arrangement, and also details of the assets that are
pledged as security against secured loans.
The Code envisages a time period of 180 days for insolvency
resolution, and if the borrower and the secured lenders do not While, this appears to be a duplication of filing, in case of a
come up with a deal of restructuring the borrower, within the company, as the Companies Act, 2013 already requires filing of
said 180 days, it results in the commencement of liquidation of a such information with the registrar of companies, it needs to be
corporate borrower, and in case of a non-corporate borrower it is seen whether the online filing system of the Ministry of Corporate
a declaration of bankruptcy. Hence, the importance on availability Affairs (MCA21), will in itself be made an IU under the Code – which
of reliable information in the hands of all the players concerned, would then eliminate the duplication of the same activity.
that would enable an informed decision to be taken by the creditors
committee that will be constituted by the Insolvency Professional However, in case of an individual and partnership, such information
under section 21 of the Code. is being filed by the relevant banking and financial institutions
with the Central Registry of Securitisation Asset Reconstruction
The BLRC, envisages that the IUs will be the storehouse of all and Security Interest (CERSAI), pursuant to Section 23 of the
information that will be necessary during an insolvency resolution Securitization and Reconstruction of Financial Assets and
process (“IRP”), and the looks at them as a vehicle that will leap- Enforcement of Security Interest Act, 2002 (SARFAESI Act). While
frog India in the IRP. this information is accessible by general public on payment of a
small fee, the search of the information is based on the property that
LEVERAGING INFORMATION TECHNOLOGY is secured and not based on the borrower entity or identification.
Since, the IUs will be a competitive industry, there will be multiple But, the access to this information is limited to those hitherto was
players acting as IUs, and hence, information relating to a single not required to be filed anywhere, will be required to be filed with the
borrower may be available with multiple IUs. As envisaged by the IUs, once they are constituted after the notification of the relevant
BLRC, all IUs will have to use the same Application Programming provisions of the Code.

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FILING WITH IUS BY OPERATIONAL CREDITORS either on a need basis or in public domain, in effect creates a
Section (3) of section 215, makes the filing of information level playing field, and removing all information asymmetry,
with the IUs for an operational creditor as an optional one. thereby enabling the creditors committee of the borrower
The BLRC envisages that the operational creditors will have to take appropriate decisions, be it on the methodology to
an incentive to file information about liabilities with the IUs restructure the financing to the borrower to make him/it a
when a borrower approaches insolvency. The incentive for viable business, or on the solvency or otherwise of a borrower.
an operational creditor to file details of liabilities with an IU,
is that if he/it can provide the proof of the existence of default
CONCLUSION
as evidenced by records available with an information utility, Under the present scheme of things, financial information about
then he/it is eligible to file for a fast track insolvency resolution non-corporate borrowers is available only with the income-tax
process before the adjudicating authority. department, and is not publicly accessible even under the
Right to Information Act, 2005. With the BLRC recommending
Section 8 of the Code, empowers an operational creditor to that the existing repositories of information needs to be
trigger IRP. In order to trigger the IRP, an operational creditor leveraged and where necessary suitable amendments is to
will be required to serve a notice of demand to the debtor by be made to the enactment under which such repository is
filing it with the IU, and if the amount involved is less than constituted, it is to be seen how financial information about
a threshold limit to be specified by the IBBI, the IU will in non-corporate borrowers will be made accessible by the IBBI,
turn serve the notice to the debtor electronically. Where the in case of bankruptcy of such borrowers.
demand is above the threshold, the service of the demand
notice is to be done by the creditor, and the evidence of the The IUs, as envisaged by the BLRC, is an initiative that
service is also to be filed with the IU. does not have any parallel in any other economy. While the
possibility to learn from any previous experience and correct
The debtor on receipt of the notice, will then have the option to any deficiency does not exist, the opportunity to create
either dispute the notice in court or to pay up the amount, before something new brings about a lot of excitement, and the
a specified time period. If neither of the two is done, then the matters envisaged in the BLRC, together with the drafting
filing done by the operational creditor will act as an evidence instructions in its report, should pave way for creation of world
of default, and thereby becoming eligible to trigger the IRP. class information availability in today’s wired world where
LEVEL PLAYING FIELD information is king. CS

APPOINTMENT
Under the present system, not all information about a borrower
is available in public domain, which can be accessed by
the persons who are concerned about the solvency of the
borrower. This creates an asymmetry of information, and such
asymmetry, acts a barrier during negotiations between the Required
borrower and the lenders, and thereby delaying the swiftness
in the process of insolvency resolution or in the decision
making of liquidation of the borrower.
Company Secretary
Under the present system, financial information and Seshasayee Properties Private Limited, a
information about the secured loans obtained by corporate Non Banking Financial Company (NBFC)
borrowers are available with the Ministry of Corporate Affairs engaged in the business of investment,
(“MCA”) acting as a central repository of such information, but finance and allied activities. The
such information is not available in respect of a non-corporate
borrowers, which constitutes the bulk of the businesses that
incumbent should be an ACS with 2 – 3
is carried out in India. Also, in a dispute relating to inability years of relevant working experience in an
to pay debts, or for recovery of debts, disputes about the NBFC of repute. Apply with confidence
security and also the amount owed takes up many years to within 15 days stating age, qualification,
be resolved in the courts. experience and details of salary drawn
and expected to: -
The IUs, recording information from the creditors of a borrower
– both financial and operational, about liabilities, collateral
obtained for the secured loan and also recording instances of The Director, Seshasayee Properties
default, coupled with financial information about the borrower, Private Limited, Industry House,
in effect will have in their repository, all information required 1st Floor, 159, Churchgate
to all stakeholders of a borrower. Reclamation, Mumbai – 400 020.
With all information required in decision making being
available with the IUs, and accessible by the stakeholders,

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 Position of Secured Creditor in the Winding up
ARTICLE

and in the Liquidation of Corporate Debtor

INTRODUCTION inclusive) of the Code have come into
force. Sections 245 to 255 of the Code

T
he provisions relating to winding are intended to amend as many as
up of companies contained in the eleven other enactments.
Companies Act, 1956 (1956 Act) The amendments effected to these
were seldom correctly understood and eleven enactments are yet to come into
applied in real situations. This has resulted force. The changes made to the 2013 Act
in the stakeholders of the company in have been taken into account while
winding up not getting proper share in considering the position of secured
the distribution of the assets realised creditor in the case of winding up of a
by the liquidator. Callous attitude of corporate person.
G M Ramamurthy the stakeholders also contributed to The Code has opened up new
Advocate, Chennai inequitable distribution of the dividend by opportunities for insolvency professionals,
[Link]@[Link] the liquidator. though the expertise in relevant areas is

The Insolvency and Bankruptcy Code has opened up new

opportunities for insolvency professionals, though the expertise
in relevant areas is yet to be prescribed by the Insolvency and
Bankruptcy Board under the Code. Hence, a correct
understanding of the provisions of the Companies Act,2013
Act and the Code will be of immense advantage to the
Insolvency Professionals when the Code becomes operational.

Consequent upon the enactment of the yet to be prescribed by the Insolvency

Insolvency and Bankruptcy Code, 2016 and Bankruptcy Board under the Code.
(Code), which will now govern the whole Hence, a correct understanding of the
gamut of insolvency except in the provisions of 2013 Act and the Code will
circumstances mentioned in Section 271 be of immense advantage to the
of the Companies Act, 2013 (2013 Act) Insolvency Professionals when the Code
as amended by the Code, will to a great becomes operational.
extent rectify the situation. While the
circumstance relating to passing of a The term secured creditor not only
special resolution by the company to be means a bank or a financial institution or
wound up by the Tribunal was frequently any consortium of group thereof but also
resorted to by the companies, the includes (i) debenture trustee appointed
circumstances narrated in Clauses (b) by any bank of financial institution, (ii)
and (c) were seldom formed the basis for securitisation company or a reconstruction
winding up a company. The circumstance company whether acting as such or
relating to just and equitable that the managing a trust set up by such
company should be wound up by the securitisation company or reconstruction
Tribunal would continue to be dealt with company for the securitisation or
by 2013 Act. reconstruction, as the case may be, and
(iii) any other trustee holding securities
The Code has been brought into force on behalf of a bank or financial institution
partially by the issue of notification in the in whose favour security interest is
Official Gazette dated 05.08.2016. created. All these entities are now to
Pursuant to this notification, the acclimatize themselves with their position
provisions of Sections 188 to 194 (both in winding up of a corporate debtor or in

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 POSITION OF SECURED CREDITOR IN THE WINDING UP AND IN THE LIQUIDATION OF CORPORATE DEBTOR

ARTICLE
the liquidation of such debtor.
Section 53 of the Code overrides
SECURED CREDITOR the Central and State Laws for the
The 2013 Act does not define a “creditor” or a “secured
creditor”, which terms have relevance in the winding up of a
time being in force. This departure
corporate person. The enactments referred to section 2 (95) of is beneficial particularly to the
2013 Act do not assist in obtaining a decipherable definition.
The Provincial Insolvency Act, 1920 (slated to be repealed secured creditors. Earlier there were
pursuant to section 243 of the Code) contained the definition numerous occasions when priority
of these two words. Being a piece of analogous legislation, it is
appropriate to have regard to the definitions contained therein. of payment of crown debts was
“Creditor”, as defined in section 2 (1) (a), “includes a decree- claimed in preference over the dues
holder “debt” includes a judgment-debt, and “debtor” includes
a judgment-debtor”. As per section 2(1) (e), “secured creditor” of the secured creditor. Some of the
means a person holding a mortgage, charge or lien on the
property of the debtor or any part thereof as a security for a
State Governments like Rajasthan,
debt due to him from the debtor”. Definition of “secured Madhya Pradesh and others
creditor” contained in the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
amended the respective State Sales
2002 (SARFAESI Act), is not of much assistance, as the Tax Acts providing overriding priority
definition in that Act is with reference to the entity to be treated
as a secured creditor for the purposes of that Act.
to the dues under the Act. In view of
the non-obstante clause such claims
SECURED CREDITOR IN WINDING UP OF A COMPANY
UNDER 1956 ACT under the Code do not command
any priority for payment and will
Section 529 of the 1956 Act dealt with the options available to
a secured creditor and the consequences of such options. In be paid by the liquidator after the
terms of proviso to section 529 (1), by a fiction of law, a pari payment of financial debts owed to
passu charge was created in favour of workmen to the extent
of workmen’s portion. A secured creditor had the option of unsecured creditors.
either realising his security or relinquishing his security for the
general benefit of the creditors. If a secured creditor preferred
to proceed to realise his security, (a) the liquidator could come under the winding up and to prove for and receive
represent the workmen and enforce the pari passu charge; (b) dividends out of the assets of the company. But so far as
the amount realised by the liquidator by enforcing the charge secured creditors were concerned, they had the option either
was to be applied rateably for the discharge of workmen’s to relinquish their security in which case they like any
dues; and (c) so much of the amount of debt that could not be unsecured creditor would only be entitled to prove for and
realised by the secured creditor or the amount deducted receive the dividends out of the assets of the company or to
towards the workmen’s dues out of the security, whichever realise the security instead of relinquishing the security in
was less, would have ranked pari passu with the workmen’s which case they had to pay to the liquidator only expenses for
dues under section 529A. It should be understood that a the preservation of the security until they realize the security by
secured creditor of an insolvent company which was being appropriate proceedings other than the winding up proceedings.
wound up had only a right over the particular property or asset The non-obstante opening words of Section 529A were
of the company offered to the secured creditor as a security intended to give precedence to the overriding preferential
and did not extend on the assets of the company not forming payments in contrast to the preferential payments as
part of the security. contemplated under Section 530 of the Act. This non-obstante
language had even greater significance as it, in no uncertain
The effect of sections 529 and 529A of 1956 Act was that the terms, provided that Section 529A would have effect
secured creditor had a right to realise the amount due to him notwithstanding anything contained in any other provision of
out of the security obtained by him and if the amount realised the Act or any other law for the time being in force. Thus, the
was shared with the workmen’s dues to the extent of the provisions were exceptions to all other laws in force.
money so shared or the balance amount of debt outstanding,
whichever was less, would rank pari passu with the workmen’s Relinquishment must be by virtue of a specific act and a
dues under section 529A. conscious decision on behalf of the secured creditor. It was
held by the Supreme Court that mere filing proceedings before
Sub-section (2) of Section 529 of 1956 Act permitted all a special forum to save limitation without taking any effective
creditors, secured and unsecured, of the insolvent company to steps to realize the security, would not necessarily mean that

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the secured creditor has stood outside the winding up Adjudicating Authority may pass order permitting a secured
proceedings. creditor to realise the security in accordance with the law. If the
amount realised in excess of the amount due to the secured
The provisions of section 530 of 1956 Act did not impact the creditor, he shall account to the liquidator for the surplus and
rights of the secured creditor. tender the surplus to the liquidator. The secured creditor is
entitled to deduct the costs from the proceeds of any realisation
SECURED CREDITOR IN WINDING UP OF A COMPANY and transfer such amounts to the liquidator to be included in
UNDER 2013 ACT the liquidation estate. In case of inadequacy in the amount
realised to satisfy his dues in full, the balance amount due to
There is not much of a change in the position of a secured the secured creditor shall become debts to be paid pari passu
creditor under 2013 Act, except that priority for the payment of with crown debts.
the workmen’s dues relating to wages and salary (which were
enumerated under sub-clause (i) and (ii) of clause (b) of the Section 53 starts with a non-obstante clause. The provisions of
Explanation to section 326 of 2013 Act) which are payable for section 53 override any law enacted by the Parliament or any
a period of two years preceding the winding up order or such State Legislature for the time being in force. The distribution of
other period as may be prescribed, has been expressly the amounts realised by the liquidator shall be made within
conferred. Such payment has to be made within a period of such specified period and in such manner as may be specified.
thirty days of sale of assets and shall be subject to such charge The distribution shall take place in the following manner and
over the security of the security of secured creditors. order: -(i) Insolvency resolution process costs and liquidation
costs shall be paid in full; (ii) The workmen’s dues for the
The non-obstante clause stands omitted from section 326 of period of 24 months preceding the liquidation commencement
2013 Act. This may revive claims relating to priority of dues date and the debts owed to a secured creditor in the event he
conferred for various dues in diverse enactments, including has relinquished security to the liquidator shall be paid pari
any law made by the Parliament or State Legislature in a passu; (iii) wages and any unpaid dues owed to the employees
winding up proceeding. By the insertion of section 327 (7), other than workmen for the period of 12 months preceding the
sections 326 and 327 of 2013 Act have been made inapplicable liquidation commencement date; (iv) financial debts owed to
in cases of liquidation under the Code. Hence the position of unsecured debtors; (v) (a) amount due to Central Government
secured creditor under liquidation is not the same as in the and the State Government in respect of the whole or any part
2013 Act in the case of winding up. of the period of two years preceding the liquidation
commencement date; and (b) debts owed to the secured
SECURED CREDITOR IN LIQUIDATION UNDER creditor for any amount remaining unpaid (or unadjusted)
THE CODE following the enforcement of security interest; (vi) any remaining
debts and dues; (vii) preference shareholders, if any; and (viii)
Section 52 of the Code contains provisions relating to the equity shareholders or partners, as the case may be.
position of secured creditor in liquidation proceedings. Section
53 of the Code deals with the distribution of assets of corporate Contractual arrangements between recipients with equal
person in liquidation. ranking, if likely to disrupt the order of priority, shall be
disregarded by the liquidator. The fees payable to the liquidator
In terms of section 52, a secured creditor has the option to shall be deducted proportionately from the proceeds payable
relinquish his security interest and receive proceeds from the to each class of recipients and the balance amount alone shall
sale of assets by the liquidator or realise the security. If the be distributed. The dues ranking pari passu shall be paid
secured creditor chooses to realise the security, he has to equally or proportionately if the amount is inadequate to make
inform the liquidator and identify the asset over which he has payment in full. Workmen’s dues shall have the meaning as
the security interest. The liquidator after due verification may given in the Explanation to section 326 of 2013 Act.
permit the secured creditor to realise only such security
interest. Section 53 of the Code overrides the Central and State Laws
for the time being in force. This departure is beneficial
The secured creditor has the freedom to enforce, realise, particularly to the secured creditors. Earlier there were
settle, compromise or deal with the secured assets in numerous occasions when priority of payment of crown debts
accordance with the law applicable to the security interest was claimed in preference over the dues of the secured
being realised and apply the proceeds to recover the dues to creditor. Some of the State Governments like Rajasthan,
him. In case the secured creditor encounters any resistance Madhya Pradesh and others amended the respective State
from the corporate debtor or any person connected therewith Sales Tax Acts providing overriding priority to the dues under
in taking possession of, selling or otherwise disposing off the the Act. In view of the non-obstante clause such claims under
security, the secured creditor is permitted to make an the Code do not command any priority for payment and will be
application to the Adjudicating Authority (National Company paid by the liquidator after the payment of financial debts owed
Law Tribunal) to facilitate him to realise such security interest to unsecured creditors.
in accordance with the law for the time being in force. The

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considerably reduced, if not eliminated altogether.

The secured creditor should note that mere filing a recovery

application before the Debts Recovery Tribunal would not
tantamount to enforcing security interest. He should take
measures under the SARFAESI Act so as to demonstrate his
intention of remaining outside the winding up or liquidation
proceedings and realising his security.
Section 52 of the Code confers an option to the secured
creditor to make an application to the Adjudicating Authority if
he faces resistance from the corporate debtor or any person
connected therewith in taking possession of, selling or
otherwise disposing off the security. This option is in addition
to the provisions of section 14 of the SARFAESI Act entitling
him to seek the help of the Metropolitan Magistrate or District
Magistrate for taking possession of the secured assets. The
Adjudicating Authority as well as Metropolitan Magistrate or
District Magistrate is to act in accordance with the law. As per
the decisions of the Supreme Court, such authority shall have
Limiting the priority to workmen’s dues for a period of 24 months to enquire and decide the claim relating to tenancy on the
preceding the liquidation commencement date and the dues of secured assets from any person claiming to be a tenant. The
the secured creditor to the extent of the amount recovered by language of section 52 (5) implies that a secured creditor
realisation of security have made available sufficient amount for standing outside the winding up and enforcing his security
defraying the dues of others. Under the Code employees other interest may also approach the Adjudicating Authority.
than workmen will also stand a chance to be paid whole or part
of their wages and unpaid dues for a period of 12 months Keeping the pros and cons in view, a secured creditor may well
preceding the liquidation commencement date. assess approaching either of the Authorities in his endeavour
to realise the secured asset.
Secured creditor who has realised his security and still has a Under Section 52 (5), a secured creditor can approach the
balance amount to be recovered has been placed below the Adjudicating Authority for selling or otherwise disposing off the
financial debts due to unsecured creditors in the order of security, whereas such powers cannot be exercised by the
priority. All debts payable on a contingency and all claims Metropolitan Magistrate or District Magistrate under section 14
against the company, present and future, certain or contingent, of SARFAESI Act. Thus the Adjudicating Authority exercises
ascertained or sounding only in damages shall be paid before greater powers than a Metropolitan Magistrate or District
making any payment to preference shareholders. Magistrate under SARFAESI Act.

Recovery of amounts due to the Central Government or State A secured creditor is entitled to receive the proceeds from the
Government has been restricted to the whole or part of the sale of secured assets even if he relinquishes his security
period of two years preceding the liquidation commencement interest to the liquidator. The Secured Creditor, therefore,
date. The Code thus aims at equitable distribution of the assets should take a well considered decision whether or not to
realised by the liquidator of a corporate debtor. relinquish the security. Much in this regard depends upon the
The position of secured creditor having different ranking efficiency of the liquidator.
charges requires some consideration. It is a common practice
among the lenders (banks or financial institutions) to cede a One drawback which requires rectification pertains to the fee
pari passu charge or a second charge or a residual charge in payable to the liquidator. As per section 53 (3) of the Code, the
favour of other lenders. The property when sold the proceeds fee payable to the liquidator shall be deducted proportionately
would be appropriated towards the charge holders as per their from the proceeds payable to each class of recipients under
inter se ranking. This position has been recognised by the sub-section (1) and the proceeds to the relevant recipient shall
Transfer of Property Act, 1881. Neither the 2013 Act nor the be distributed after such deduction. It implies that the entire
Code recognises such distribution. Hence the secured creditor fees cannot be recovered out of the realisation of the sale of
must endeavour to sell the secured assets by standing outside assets; but it is linked to distribution to each class and recovery
the winding up or liquidation of a corporate person. in proportion to the payment made. The ambiguity in this case
will arise in the case of inadequacy of sale proceeds to discharge
CONCLUSION entire dues mentioned in section 53 (1). As proportionate
The Code has made explicit provisions relating to secured recovery has been contemplated, the liquidator may not be able
creditor and the options available to them. The areas of to recover his entire fees. It would have been a comfort to the
disputes amongst the various persons entitled to share the liquidator if clause (a) also covers the fees payable as it depends
realisation of the assets of the corporate debtor have been on the percentage of recovery made. CS

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ARTICLE

Winding up of Companies under the Insolvency

and Bankruptcy Code, 2016
THE CODE 05.05.2016 and it was passed by Rajya
Sabha thereafter. On assent being given

T
he provisions relating to insolvency by the President on 28.05.2016, it has
and bankruptcy of companies become the Insolvency and Bankruptcy
have been scattered in the Sick Code, 2016(31 of 2016 dated 28.05.2016),
Industrial Companies (Special Provisions) hereinafter referred to as “the Code”.
Act, 1985, the recovery of Debt Due to
Banks and Financial Institutions Act, 1993,
INSOLVENCY AND
the Securitisation and Reconstruction LIQUIDATION OF CORPORATE
of Financial Assets and Enforcement of
Security Interest Act, 2002 (SARFAESI)
PERSONS TO BE GOVERNED
M L Sharma*, ACS
and the Companies Act, 1956 . Liquidation EXCLUSIVELY BY THE CODE
Advocate, Delhi of companies is handled by the High The Companies Act, 1956 and now the
mlsharma46@[Link]
Courts. The Provincial Insolvency Act, 1920 Companies Act, 2013 contain provisions
provided for the law relating to insolvency for winding up of companies on various

The Insolvency and Bankruptcy Code, 2016 has made drastic

changes with regard to winding up of companies. The Code has
also shifted the provisions regarding voluntary winding up of
companies from the Companies Act to the Code with some
modifications, particularly doing away with members' voluntary
winding up and approval of creditors compulsory for voluntary
winding up of corporate debtors. These provisions have been
discussed in this article to give a layman's understanding of them.

as administered by courts having jurisdiction grounds including inability of companies

outside the Presidency-towns and the to pay their debts. Now, the Code has
Presidency Towns Insolvency Act, 1909 deleted the provisions in the Companies
governed the law relating to insolvency in Act regarding winding up of companies on
presidency towns. With the objective to the ground of inability to pay their debts and
consolidate and amend the laws relating those relating to voluntary winding up of
to the reorganization and insolvency companies and detailing the requirements
resolution of corporates, partnership firms for insolvency resolution of corporate
and individuals in a time bound manner persons and voluntary winding in the Code
for maximization of value of assets of such itself. Accordingly, the Code shall exclusively
persons, to promote entrepreneurship, be governing the insolvency resolution and
availability of credits and balance the liquidation of corporates. The Companies
interests of all shareholders and to have Acts will continue to govern winding up
an effective and adequate framework of of companies on various other grounds
insolvency and bankruptcy, “the Insolvency excluding inability to pay debts. The Code
and Bankruptcy Code” was introduced in has provided for insolvency resolution and
Lok Sabha on 21.12.2015. Thereafter, it was liquidation of not only companies but also
referred to Joint Committee of Parliament for insolvency resolution and winding up
which submitted its report on 28.04.2016. of companies, limited liability partnerships
* Retired ICLS Officer. The Lok Sabha passed the legislation on and other entities incorporated with limited

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The resolution professional shall any person, as the case may be. Part II provides for the following
two types of liquidation processes for corporate personsnamely
conduct the entire corporate (i) Corporate insolvency resolution-cum-liquidation process
insolvency resolution process and through National Company Law Tribunal (NCLT); and(ii) Voluntary
liquidation of corporate persons.
manage the operations of the CORPORATE INSOLVENCY RESOLUTION-CUM-
corporate debtor during the corporate LIQUIDATION PROCESS
insolvency resolution process period. Corporate insolvency resolution process to be initiated first
It shall be the duty of the resolution in case of default in payment of debt of Rs.1 lakh or more
In case of default in payment of debt upto Rs. I lakh by a corporate
professional to preserve and protect person, the only remedy available to the creditor is to file civil

the assets of the corporate debtor suit and obtain decree and get it enforced. In case of default in
payment of debt of Rs. 1 lakh and more, civil suit cannot any more
including the continued business be filed; nor can any winding up petition be filed against a corporate
person. It would first be necessary to initiate corporate insolvency
operations of the corporate debtor. resolution process in accordance with the extant provisions of the
While taking decisions involving Code before any liquidation proceedings can be initiated against
a corporate person.
financial aspects etc. the resolution
professional shall obtain approval of Persons who can make application to initiate corporate
insolvency resolution process
the Committee of Creditors.
The following persons have been allowed to initiate corporate
liability under any other law for the time being in force also. Whereas insolvency resolution process in case of default in payment of debt
Part II of the Code deals with Insolvency resolution and liquidation of Rs.1 lakh or more by a corporate person:-
of corporate bodies , Part III of the Code regulates insolvency
resolution and bankruptcy of individuals and partnership firms by 1. The corporate person itself i.e. the defaulting company
providing for the following:- incorporated under the Companies Acts or limited liability
I. Fresh start process for debts upto Rs.35,000 only subject partnership or the person incorporated with limited liability
to certain conditions (under DRT through Resolution under any other law for the time being in force.
Professional);
II. Insolvency resolution process for individuals and partnership 2. The financial creditor i.e. any person to whom a financial
firms ( under DRT through Resolution Professional); debt is owed and includes a person to whom some debt has
III. Bankruptcy order on failure of insolvency resolution process been legally assigned or transferred. “Financial debt” means
(Insolvency professional to act as Bankruptcy Trustee under a debt along with interest, if any, which is disbursed against
DRT) the consideration for the time value of money. “Financial
TWO TYPES OF LIQUIDATION PROCESSES debt” includes(a) Money borrowed against the payment of
interest;(b) Any amount raised by acceptance under any
FOR CORPORATE PERSONS acceptance credit facility or its de-materialised equivalent;(c)
Part II of the Code deals with insolvency and liquidation of Any amount raised pursuant to any note purchase facility
corporate persons. Corporate person means a company within the or the issue of bonds, notes, debentures, loan stock or any
meaning of section 2 (20) of the Companies Act, 2013, a limited similar instrument;(d) The amount of any liability in respect
liability partnership as defined in section 2(1)(n) of the Limited of any lease or hire purchase contract which is deemed as a
Liability Partnership Act, 2008 or any other person incorporated finance or capital lease under the Indian Accounting Standards
with limited liability under any law for the time being in force. Any or such other accounting standards as may be prescribed;(e)
financial service provider, however, is excluded from the scope of Receivables sold or discounted other than any receivables
the Code. ‘Financial service provider’ means a person engaged in sold on non-recourse basis;(f) Any amount raised under any
the business of providing financial services in terms of authorization other transaction, including any forward sale or purchase
issued or registration granted by a financial sector regulator, such agreement, having the commercial effect of a borrowing;(g)
as Reserve Bank of India, the Securities and Exchange Board Any derivative transaction entered into in connection with
of India, the Insurance Regulatory and Development Authority protection against or benefit from the fluctuation in any rate or
of India, the Pension Fund Regulatory Authority and such other price and for calculating the value of any derivative transaction,
regulatory authority as may be notified by the Central Government. only the market value of such transaction shall be taken into
The provisions of Part II shall apply where there has been default account;(h) Any counter-indemnity obligation in respect of the
in payment of debt of Rs.1 lakh or more when whole or any part or guarantee, indemnity, bond, documentary letter of credit or any
instalment of the amount of debt has become due and payable and other instrument issued by a bank or financial institution;(i) The
is not repaid by a debtor or the corporate debtor who owes debt to amount of any liability in respect of any of the items referred

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to in sub-clauses (a) to (h) above. interim resolution professional; and(c) Any other information
as may be specified by the Insolvency and Bankruptcy Board
3. The operational creditor i.e. the person to whom an operational of India.
debt is owed or any other person to whom such debt has been
legally assigned or transferred. “Operational debt” means a l The application is to be made to the National Company Law
claim in respect of the provision of goods or services including Tribunal (NCLT) which is designated as the Adjudicating
employment or a debt in respect of repayment of dues arising Authority for the purpose.
under any law for the time being in force and payable to the
Central Government, State Government or any local authority. If the NCLT, within 14 days of receipt of the application is satisfied
on the basis of the evidence furnished that a default has occurred
Applications for initiation of corporate insolvency resolutions are and the application is complete and there is no disciplinary
required to be made to the National Company Law Tribunal(NCLT). proceeding is pending against the proposed professional ,it shall
admit the application and within 7 days of the admission of the
Persons who are not entitled to initiate corporate insolvency application communicate the order of admission to the financial
resolution creditor and the corporate debtor concerned. The corporate
insolvency process shall commence from the date of admission
The following persons shall not be entitled to make application to of the application.
NCLT for initiation of corporate insolvency resolution process :-
Where, however, default is not made or the application is
(a) a corporate debtor undergoing a corporate insolvency incomplete or any disciplinary proceeding is pending against the
resolution process; or proposed professional, NCLT may reject the application within 14
(b) a corporate debtor having completed corporate insolvency days of the receipt of the application and it shall, within 7 days of
resolution process twelve months preceding the date of making rejection of the application communicate the order of rejection to
of the application; or the financial creditor.
(c) a corporate debtor or a financial creditor who has violated any
of the terms of resolution plan which was approved twelve Application by operational creditor
months preceding the date of making application; or
(d) a corporate debtor in respect of whom a liquidation order has l On occurrence of the default, the operational creditor has to
been passed so that finality of the liquidation order is ensured. deliver a demand notice of unpaid operational debtor or copy
of invoice demanding repayment of the amount involved in
For making an application, a corporate debtor includes a corporate the default to the corporate debtor in the prescribed form and
applicant in respect of such corporate debtor prescribed manner.

Mode of making application to NCLT for initiation of corporate l The corporate debtor must, within 10 days of the receipt of the
insolvency resolution process demand notice or the copy of the invoice as above, bring to
the notice of the operational creditor existence of any dispute,
For making application for initiation of corporate insolvency if any, and record of the pendency of any suit or arbitration
resolution process, the eligible persons will have to take the proceeding filed before the receipt of the notice or the copy of
following steps keeping in view their status as applicants: the invoice in relation to such dispute. Where the amount of
debt has been already paid, the corporate debtor must bring
Application by financial creditor to the notice of the operational debtor the repayment of unpaid
operational debt by sending an attested copy of the record of
l A financial creditor can file application either by itself or jointly electronic transfer of unpaid amount from the bank account
with other financial creditor(s) when a default in respect of a of the corporate debtor or by sending an attested copy of the
financial debt owed not only to the applicant financial creditor, record that the operational creditor has encashed the cheque
but to any other financial creditor of the corporate debtor is issued by the corporate debtor.
made.
l After the expiry of 10 days from the date of delivery of demand
l The application shall be made in prescribed form in prescribed notice or the copy of the invoice, if the operational creditor
manner and shall be accompanied by prescribed fee. does not receive payment or notice of dispute as above, the
operational creditor may file application to NCLT in prescribed
l The following documents shall be enclosed with the form and in prescribed manner and the application has to
application:-(a) Record of the default recorded with the be accompanied by prescribed fee for initiation of corporate
information utility or such other record or evidence of default insolvency resolution process.
as may be specified.( “Information utility” means a person who
is registered with the Insolvency and Bankruptcy Board of India l The following documents shall be enclosed to the application:-
as an information utility under section 210 of the Code.)(b) (a) copy of the invoice demanding payment or demand notice
The name of the resolution professional proposed to act as an delivered by the operational creditor to the corporate debtor;

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(b) an affidavit to the effect that there is no notice given by to such period as may be specified by the Board;
the corporate debtor relating to the dispute of the unpaid (b) The particulars of the resolution professional proposed to
operational debt; (c) copy of the certificate from the financial be appointed as an interim resolution professional.
institutions maintaining accounts of the operational creditor
confirming that there is no payment of an unpaid operational The NCLT shall, by an order, admit the application within 14 days
debt by the corporate debtor; and (d)such other information of the receipt of the application if it is complete. The corporate
as may be specified by the Board. insolvency resolution process shall commence from the date of
admission of the application.
l An operational creditor initiating corporate insolvency
resolution process may propose a resolution professional to If the application is incomplete, NCLT may reject the application,
act as an interim resolution professional. but before rejecting the application, NCLT shall give notice to the
Within 14 days of the receipt of the application, NCLT shall admit applicant to rectify the defects in the application within 7 days from
the application if the following requirements are fulfilled:- the date of receipt of the notice.

(a) The application is complete. Process of corporate insolvency resolution

(b) There is no repayment of the unpaid operational debt.
(c) The invoice or notice for payment to the corporate debtor has For completion of the corporate insolvency resolution process the
been delivered by the corporate creditor. following actions/steps are to be taken under the Code:
(d) No notice of dispute has been received by the operational
creditor or there is no record of dispute in the information utility. Time limit for completion of process
(e) There is no disciplinary proceeding pending against any
resolution professional proposed, if any. The whole process is to be completed within the time bound period
of 180 days. On application of the resolution professional, the
The decision of admission of the application will be communicated period of 180 days may be extended by NCLT by further period not
by NCLT to the operational debtor and the corporate debtor. The exceeding of 90 days. As per section 55, in respect of the following
corporate insolvency resolution process shall commence from the corporate debtors application can be made for fast track corporate
date of admission of the application. insolvency resolution process:-

NCLT may reject the application in the following circumstances:- (a) a corporate debtor with assets and income below a level as
may be notified by the Central Government; or
(a) if the application is incomplete; (b) a corporate debtor with such class of creditors or such amount
(b) if there has been repayment of the unpaid operational debt; of debt as may be notified by the Central Government; or
(c) if the creditor has not delivered the invoice or notice for (c) such other category of corporate persons as may be notified
payment to the corporate debtor; by the Central Government.
(d) if the notice of dispute has been received by the operational
creditor or there is a record of dispute in the information utility; Where fast track corporate insolvency process is allowed by
and NCLT, the process has to be completed within a period of 90 days.
(e) if any disciplinary proceeding is pending against any proposed However, extension of period up to 45 more days may be allowed
resolution professional. by NCLT if the request is supported by a resolution of Committee
of Creditors by a vote of 75% of the voting share.
Before rejecting the application, NCLT will have to give notice to
the applicant to rectify the defect in his application within 7 days Moratorium
of such notice from NCLT. NCLT shall communicate the decision
of rejection of the application to the operational creditor and the On the insolvency commencement date, NCLT shall, by order,
corporate debtor. declare moratorium for prohibiting all of the following during the
corporate insolvency process, namely,-
Application by the corporate debtor
Where a corporate debtor has committed a default, a corporate (a) The institution of suits or continuation of pending suits or
applicant thereof may file an application to NCLT for initiating proceedings against the corporate debtor including execution
corporate insolvency resolution process by taking the following of any judgement, decree or order in any court of law, tribunal,
steps:- arbitration panel or other authority.

l The application shall be filed in prescribed form containing (b) Transferring, encumbering, alienating or disposing of by the
prescribed particulars in prescribed manner and the application corporate debtor any of its assets or any legal right or beneficial
shall be accompanied by prescribed fee. interest therein.
l Corporate debtor shall enclose the following documents to the
application:- (c) Any action for foreclose, recovery or enforcement of any
(a) Its books of account and such other documents relating security interest created by the corporate debtor in respect

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of its property including any action under the Securitisation sent to NCLT for obtaining confirmation of the appointment of the
and Reconstruction of Financial Assets and Enforcement of new resolution professional from the Board. All decisions of the
Security Interest Act, 2002. committee shall be taken by a vote of not less than 75% of voting
(d) The recovery of any property by an owner or lessor where such share of the financial creditors.
property is occupied by or in the possession of the corporate
debtor. The resolution professional shall conduct the entire corporate
insolvency resolution process and manage the operations of
However, the supply of essential goods and services to the the corporate debtor during the corporate insolvency resolution
corporate debtor as may be specified by the Board shall not be process period. It shall be the duty of the resolution professional to
terminated or interrupted during moratorium period. Moratorium preserve and protect the assets of the corporate debtor including
may also not apply to such transactions as may be notified by the continued business operations of the corporate debtor. While
the Central Government in consultation with any financial sector taking decisions involving financial aspects etc. the resolution
regulator. professional shall obtain approval of the Committee of Creditors.

Appointment of interim resolution professional Preparation of information memorandum and submission of

resolution plan
Within 14 days from the insolvency commencement date, NCLT
shall appoint an interim resolution professional by accepting The resolution professional shall prepare an information
the professional proposed by the applicant unless disciplinary memorandum in such form and manner containing information
proceedings are pending against the proposed professional. In required by a resolution applicant to make the resolution plan for
that case interim resolution professional will be appointed on the the corporate debtor which shall include the financial position of the
recommendation of the Board. The term of the interim professional corporate debtor, all information related to disputes by or against the
shall not exceed 30 days. The interim resolution professional shall corporate debtor and any other matter pertaining to the corporate
manage the affairs of the corporate debtor and the powers of the debtor as may be specified by the Board.
Board of directors or the partners of the corporate debtor, as the
case may be, shall stand suspended. He shall collect and collate The resolution applicant i.e. the person who submits the resolution
all the information regarding the assets and liabilities, finances and plan to the resolution professional shall prepare the resolution
operations of the corporate debtor and take control and custody of plan on the basis of information memorandum and submit it to the
all its assets and shall also constitute a Committee of Creditors. The resolution professional. There are no restrictions as to who can
management of operations of corporate debtor as going concern be a resolution applicant, subject to compliance with all applicable
shall also vest in the resolution professional. He shall also collect laws. Thus even promoters of the corporate debtor may become
and collate the claims of creditors received pursuant to the public resolution applicant. This will facilitate proposals from persons
announcement of the initiation of corporate insolvency resolution interested in commercially viable but insolvent businesses to rescue
made by NCLT. No person shall render his services as insolvency such entities creating value for all stakeholders in the process, The
professional without being enrolled as a member of an insolvency resolution professional shall examine each resolution plan received
professional agency and registered with the Insolvency and by him to confirm that each resolution plan-
Bankruptcy Board of India.
(a) provides for payment of insolvency resolution process costs in
Public announcement of initiation of the process and call for a manner specified by the Board in priority to the repayment
submission of claims of other debts of the corporate debtor;

Immediately after the appointment of the interim resolution (b) provides for the repayment of the debts of operational creditors
professional, NCLT shall cause a public announcement of the in such manner as may be specified by the Board which shall
initiation of corporate insolvency resolution process and call for not be less than the amount paid to the operational creditors
the submission of claims in such manner as may be specified by in the event of liquidation of the corporate debtor;
the Board and containing the information specified in section 15.
(c) provides for the management of the affairs of the corporate
Constitution of Committee of Creditors and Appointment of debtor after approval of the resolution plan;
resolution professional
(d) implementation and supervision of the resolution plan;
The interim resolution professional shall, after collation of all claims
received against the corporate debtor and determination of the (e) does not contravene any of the provisions of the law for the
financial position of the corporate debtor, constitute a Committee time being in force;
of Financial Creditors of the corporate debtor. Within 7 days of
the constitution of the Committee of Creditors, the first meeting of (f) conforms to such other requirements as may be specified by
the committee shall be held at which either the interim resolution the Board.
professional shall be appointed as resolution professional or where
someone else is proposed to be so appointed, proposal shall be The resolution professional shall submit the plan which conforms

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to the above requirements to the Committee of Creditors for their application if NCLT determines that the corporate debtor has
approval. The Committee may approve a resolution plan by a contravened the provisions of the resolution plan, it shall pass a
vote of not less than 75% of voting share of the financial creditors. liquidation order as prayed for.
The plan approved by the Committee shall be submitted by the
resolution professional to NCLT for approval. EFFECT OF LIQUIDATION ORDER
The following consequences will follow liquidation order:-
Approval of resolution plan by NCLT
Resolution professional to become liquidator unless ordered to be
If the NCLT is satisfied that the resolution plan as approved by the replaced by NCLT
Committee of Creditors meets the requirements as detailed in the
preceding sub-para, it shall by order approve the resolution plan Where NCLT passes an order for liquidation of the corporate debtor,
which shall be binding on the corporate debtor and its employees, the resolution professional appointed for the corporate insolvency
members, creditors, guarantors and other stakeholders involved in resolution process shall act as the liquidator for the purposes of
the resolution plan. Where the resolution plan does not meet the liquidation except where the resolution plan submitted by him was
requirements, NCLT shall, by order, reject the same. On approval of rejected by NCLT or for reasons to be recorded in writing, the Board
the plan, the moratorium order passed by the Tribunal shall cease to recommends the replacement of the resolution professional. The
have effect and the resolution professional shall forward all records new resolution professional shall be appointed as liquidator on the
relating to the conduct of the corporate insolvency resolution plan recommendation of the Board. The liquidator shall be paid his fees
to the Board to be recorded on its database. for the conduct of the liquidation process from the proceeds of the
liquidation estate in such proportion to the value of the liquidation
Avoidance of preferential transactions, undervalued transactions, estate assets as may be specified in regulations by the Board.
transactions to defraud creditors and extortionate credit The liquidation estate shall comprise of the assets of the corporate
transactions.(Discussed elsewhere infra ) debtor set out in section 36. The liquidator shall hold the liquidation
estate as a fiduciary for the benefit of all the creditors of the
Failure of the corporate insolvency resolution process would corporate debtor. Subject to the directions of NCLT, the liquidator
lead to liquidation process shall have the various powers and duties as specified in section
35 to ensure orderly completion of the liquidation proceedings.
As per section 33 of the Code, NCLT shall order liquidation of the
corporate debtor in the following situations:- Discharge of board of directors, officers, employees etc of corporate
(a) Where NCLT does not receive a resolution plan before the debtor
expiry of the insolvency resolution process period or the
maximum period permitted for completion of the corporate The order for liquidation shall be deemed to be a notice of discharge
insolvency process under section 12 or the fast track corporate to the officers, employees and workmen of the corporate debtor,
insolvency resolution process under section 56, as the case except when the business of the corporate debtor is continued
may be. during the liquidation process by the liquidator. On the appointment
(b) Where NCLT rejects the resolution plan for the non-compliance of a liquidator, all powers of the board of directors, key managerial
of the requirement/criteria specified in section 31. personnel and the partners of the corporate debtor, as the case may
(c) Where the resolution professional, at any time during be, shall cease to have effect and shall be vested in the liquidator.
the corporate insolvency resolution process but before The personnel of the corporate debtor shall, however, extend all
confirmation of resolution plan, intimates NCLT of the decision assistance and cooperation to the liquidator as may be required
of the Committee of Creditors to liquidate the corporate debtor; by him in managing the affairs of the corporate debtor.
or
(d) Where the resolution plan approved by NCLT is contravened Effect on legal proceedings
by the concerned corporate debtor.
When a liquidation order has been passed, no suit or other legal
In the situations mentioned as (a) and (b) above, NCLT on its proceeding shall be instituted by or against the corporate debtor.
own motion shall pass the liquidation order and cause a public A suit or other legal proceeding may, however, be initiated by
announcement stating that the corporate debtor is in liquidation to the liquidator, on behalf of the corporate debtor, with the prior
be issued. NCLT shall require such order to be sent to the authority approval of NCLT. Further, the legal proceedings in relation to
with which the corporate debtor is registered. such transactions as may be notified by the Central Government in
consultation with any financial sector regulator shall not be affected
Where the corporate debtor contravenes the resolution plan by the liquidation order.
approved by NCLT, any person other than the corporate debtor,
whose interests are prejudicially affected by such contravention, Secured creditor and liquidation process
may make an application to NCLT for a liquidation order and for
issue of public announcement that the corporate debtors is in A secured creditor in the liquidation proceedings may either
liquidation and also to direct such order to be sent to the authority relinquish its security interest to the liquidation estate and receive
with which the corporate debtor is registered. On receipt of the proceeds from the sale of assets by the liquidator or realize its

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security interest. Where the secured creditor realizes security effects and actionable claims of the corporate debtor and take
interest, he shall inform the liquidator of such security interest and appropriate measures to protect and preserve the same. He shall
identify the asset subject to such security interest to be realized. have the power to access any information systems for the purpose
Before any security interest is realized by the secured creditor, the of identification of the liquidation estate assets relating to the
liquidator shall verify such security interest and permit the secured corporate debtor in terms of section 37.
creditor to realize only such security interest, the existence of
which may be proved either by the records of such security interest Consolidation, verification, admission/rejection and determination
maintained by an information utility or by such other means as may of valuation of claims
be specified by the Board.
The liquidator shall have the power to access any information
A secured creditor may enforce, realize, settle, compromise or deal system for the purpose of admission and proof of claims and
with the secured assets in accordance with such law as applicable identification of assets to be held in liquidation estate. The creditors
to the security interest being realized and to the secured creditor can also call for financial information of the corporate debtor from
and apply the proceeds to recover the debts due to it. If in the the liquidator. Section 38 stipulates a time bound period of 30
course of realizing a secured asset, any secured creditor faces days from the date of commencement of the liquidation process
resistance from the corporate debtor or any person connected for collection of claims by the liquidator. The methods by which the
therewith in taking possession of, selling or otherwise disposing off different categories of creditors can submit and prove their claims
the security, the secured creditor may make an application to NCLT have also been specified. Financial creditors can prove their claims
to facilitate the secured creditor to realize such security interest in by providing the record of claim as stored in an information utility.
accordance with law for the time being in force. NCLT, on receipt The liquidator shall verify the claims submitted by the creditors
of the application, may pass such order as may be necessary to within such time as specified by the Board by regulations. He may
permit a secured creditor to realize security interest in accordance require any creditor or the corporate debtor or any other person to
with law for the time being in force. produce any other document or evidence which he thinks necessary
for the purpose of verifying the whole or any part of the claim. After
Where the enforcement of the security interest yields an amount by verification, the liquidator may either admit or reject the claim, in
way of proceeds which is in excess of the debt due to the secured whole or in part, as the case may be. Where he rejects a claim, he
creditor, the secured creditor shall account to the liquidator for such shall record the reasons for such rejection in writing. The decision
surplus and tender to the liquidator any surplus funds received from of admission or rejection of the claim shall be communicated to the
the enforcement of such secured assets. creditor and the corporate debtor within 7 days of such admission or
rejection. The value of claims shall be determined by the liquidator
The amount of insolvency resolution process costs, due from in such manner as may be specified by the Board in regulations. A
the secured creditors who realize their security interests shall be creditor may appeal to NCLT against the decision of the liquidator
deducted from the proceeds of any realization by such secured rejecting the claim within 14 days of the receipt of such decision.
creditors and they shall transfer such amounts to the liquidator to
be included in the liquidation estate. Evaluation and sale/disposal of the assets of corporate debtor

Where the proceeds of the realization of the secured assets are not Subject to the directions of NCLT, the liquidator shall have
adequate to repay debts owed to the secured creditor, the unpaid the powers and duties to evaluate the assets and property of
debts of such secured creditor shall be paid by the liquidator in the the corporate debtor in the manner as may be specified in the
order of priority specified in section 53 of the Code. regulations by the Board. He can carry on the business of the
corporate debtor for its beneficial liquidation as he considers
THE LIQUIDATION PROCESS necessary. He shall also have power to sell the immovable and
The liquidation process starts with the winding up order and ends movable property and actionable claims of the corporate debtor
with the order of dissolution of the corporate debtor. It involves in liquidation by public auction or private contract, with power to
realization of the assets of the entity in liquidation and distribution transfer such property to any person or body corporate, or sell the
of the realization proceeds among the creditors and other same in parcels in such manner as may be specified by the Board
stakeholders who have claim to share the proceeds and other in regulations.
incidental activities by virtue of the liquidator being the trustee for
the stakeholders as discussed hereunder: Avoidance of preferential transactions, undervalued transactions,
transactions defrauding creditors and extortionate credit
Taking possession and control of the liquidation estate of corporate transactions
debtor
Sections 44 to 51 provide for avoidance of preferential transactions,
Section 36 of the Code lists the assets which shall form the undervalued transactions, transactions defrauding creditors and
liquidation estate and which the liquidator shall hold as fiduciary extortionate credit transactions entered into by the corporate
for the benefit of all creditors. Section 36 also mentions the assets debtor within the specified period prior to the liquidation order as
which shall not form part of the liquidation estate. The liquidator discussed hereunder.
has to take into his custody or control all the assets, property,

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Preferential transactions ordered by NCLT against them. In that case, a creditor, member
or a partner of the corporate debtor, as the case may be, may
During the course of corporate insolvency resolution process or make an application to NCLT. NCLT may pass order restoring the
the liquidation process it may come to the notice of the resolution position as it existed before such transactions and reversing the
professional or the liquidator that any preferential transaction has effects thereof and the order may provide for the following:-
been made with any person within the period of one year preceding
the insolvency commencement date or such transaction was made (a) Require any property transferred as part of transaction, to be
with a related party within a period of two years preceding the vested in the corporate debtor;
insolvency commencement date, an application may be made by (b) Release or discharge, in whole or in part, any security interest
the resolution professional or the liquidator to NCLT for avoidance granted by the corporate debtor;
of such preferential transaction. Section 44 specifies the orders (c) Require any person to pay such sums, in respect of benefits
that may be passed by NCLT in relation to the avoidance of a received by such person, to the liquidator or the resolution
preferential transaction.. The orders are aimed at reversing the professional, as the case may be, as the NCLT may direct; or
effects of the preferential transaction and requiring the person to (d) Require the payment of such consideration for the transaction
whom preference is granted to pay back any gains he may have as may be determined by an independent expert.
made as a result of such preference. An order of NCLT, however,
shall not affect any interest in property which was acquired from a Transactions defrauding creditors
person other than the corporate debtor or any interest derived from
such interest and was acquired in good faith and for value or shall Section 49 strikes at transactions entered into with the intention
not require a person, who received a benefit from the preferential of putting the assets of the corporate debtor beyond the reach of,
transaction in good faith and for value to pay the liquidator or the or otherwise prejudicing the interests of a person who is making
resolution professional. Where a person, who has acquired an or may make a claim, against the corporate debtor. As it involves
interest in property from another person other than the corporate fraud, there is no time limit for challenging such transactions. On
debtor, or who has received a benefit from the preference or such application being made, NCLT may order restoring the position
another person to whom the corporate debtor gave the preference as it existed before such transaction as if the transaction had not
had sufficient information of the initiation or commencement of been entered into and protecting the interests of persons who are
insolvency resolution process of the corporate debtor or is a related victims of such transactions. Third party transactions entered into
party, it shall be presumed that the interest was acquired or the in good faith may not be affected by NCLT order.
benefit was received otherwise than in good faith unless contrary
is shown. A person shall be deemed to have sufficient information Extortionate credit transactions
or opportunity to avail such information if a public notice regarding
the corporate insolvency resolution process has been made. Where the corporate debtor has been a party to an extortionate
credit transaction involving the receipt of financial or operational
Undervalued transactions debt during the period of two years preceding the insolvency
commencement date, the liquidator or the resolution professional,
A transaction which was made with any person within the period as the case may be, may make an application to NCLT for
of one year preceding the insolvency commencement date or a avoidance of the transaction if the terms of such transaction
transaction made with a related party within the period of two years required exorbitant payments to be made by the corporate
preceding the insolvency commencement date shall be considered debtor. The Board may, in regulations, specify the circumstances
undervalued where the corporate debtor,- in which a transaction shall be covered under the definition of
extortionate credit transaction.. Any debt extended by any person
(a) Makes a gift to a person; or providing financial services which is in compliance with any law
(b) Enters into a transaction with a person which involves the for the time being in force in relation to such debt, however, shall
transfer of one or more assets by the corporate debtor for a in no event be considered as an extortionate credit transaction.
consideration the value of which is significantly less than the Where NCLT is satisfied that the terms of a credit transaction
value of the consideration provided by the corporate debtor required exorbitant payments to be made by the corporate debtor,
and such transaction has not taken place in the ordinary course it shall, by order-
of business. (a) Restore the position as it existed prior to such transaction;
(b) Set aside the whole or part of the debt created on account
The liquidator or the resolution professional may make an of the extortionate credit transaction;
application to NCLT for declaring such transaction void under (c) Modify the terms of the transaction;
section 45 and to reverse the effect of such transaction. The (d) require any person who is, or was, a party to the transaction
provision is aimed at preventing the siphoning away of corporate to repay any amount received by such person; or
assets by the management of the corporate debtor, which has (e) Require any security interest that was created as part of the
knowledge of the corporate debtor’s poor financial condition and extortionate credit transaction to be relinquished in favour
may enter into such transaction in the vicinity of insolvency. If of the liquidator or the resolution professional, as the case
the liquidator or the resolution professional does not make such may be.
application to NCLT knowingly, disciplinary proceedings can be

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If in the course of realizing a secured Any contractual arrangements between recipients with equal
asset, any secured creditor faces ranking, if disrupting the order of priority shall be disregarded.
resistance from the corporate debtor The fees payable to the liquidator shall be deducted proportionately
or any person connected therewith in from the proceeds payable to each class of recipients and the
taking possession of, selling or otherwise proceeds to the relevant recipient shall be distributed after such
deduction. At each stage of the distribution of proceeds in respect
disposing off the security, the secured of a class of recipients that rank equally, each of the debts will

creditor may make an application to either be paid in full, or will be paid in equal proportion within the
same class of recipients, if the proceeds are insufficient to meet
NCLT to facilitate the secured creditor the debts in full.

to realize such security interest in Dissolution of corporate debtor.

accordance with law for the time
Where the assets of the corporate debtor have been completely
being in force. NCLT, on receipt of the liquidated, the liquidator shall make an application to NCLT for the
application, may pass such order as may dissolution of such corporate debtor and NCLT shall order that the
corporate debtor shall be dissolved from the date of that order and
be necessary to permit a secured creditor the corporate debtor shall be dissolved accordingly. A copy of an
to realize security interest in accordance order of dissolution shall be forwarded to the authority with which
the corporate debtor is registered within 7 days from the date of
with law for the time being in force. such order in terms of section 54.

Distribution of assets VOLUNTARY WINDING UP

The Code governs voluntary winding up of companies also
In terms of section 53, the proceeds from the sale of the liquidation
assets shall be distributed in the following order of priority and Part II of Chapter XX of the Companies Act, 1956 dealing with
within such period and in such manner as may be specified in the voluntary winding up has since been deleted by the Insolvency and
regulations by the Board, namely,- Bankruptcy Code, 2016 and a separate provision of section 59 has
been made in the Code for dealing with voluntary winding up of
(a) The insolvency resolution process costs and the liquidation corporate persons including companies. This section provides for
costs paid in full; the initiation of voluntary liquidation proceedings by the corporate
(b) The following debts which rank equally between and among debtor which has not defaulted on any debt due to any person A
the following:- corporate debtor, being a company may choose to be wound up
(i) workmen’s dues for the period of 24 months preceding voluntarily under several circumstances including winding up as
the liquidation commencement date; and a result of expiry of period of operation fixed in its constitutional
(ii) debts owed to a secured creditor in the event such secured documents or occurrence of an event provided in its constitutional
creditor has relinquished documents for its dissolution.
security in the manner set out in section 52 (see para
10.4 supra); Requirements/conditions for voluntary winding up
(c) wages and any unpaid dues owed to employees other than
workmen for the period of 12 months preceding the liquidation A corporate person i.e. a company or a limited liability partnership
commencement date; or an entity incorporated with limited liability under any other law
(d) financial debts owed to unsecured creditors; for the time being in force which intends to liquidate itself voluntarily
(e) the following dues shall rank equally between and among the and has not committed any default may initiate voluntary liquidation
following:- proceedings under the provisions of Chapter V of the Code. Chapter
(i) any amount due to the Central Government and the V comprises of only one section i.e. section 59 of the Code.
State Government including the amount to be received
on account of the Consolidated Fund of India and the The voluntary liquidation of a corporate person must meet the
Consolidated Fund of a State, if any, in respect of the following conditions and procedural requirements:-
whole or any part of the period of two years preceding
the liquidation commencement date; 1. Declaration of Solvency to be made by the majority of
(ii) debts owed to a secured creditor for any amount unpaid Directors
following the enforcement of security interest. Majority of directors of the company/entity must make a declaration
(f) Any remaining debts and dues; verified by an affidavit stating that-
(g) Preference shareholders, if any, and
(h) Equity shareholders or partners, as the case may be. (i) they have made a full inquiry into the affairs of the company

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and they have formed an opinion that either the company has modifications as may be necessary. These sections deal with the
no debt or that it will be able to pay its debts in full from the following matters:
proceeds of assets sold/ to be sold in the voluntary winding
up; and Section 35 mentions the usual powers and duties of liquidator. The
(ii) the company is not being liquidated to defraud any person approval of the adjudicating authority i. e. the National Company
Law Tribunal would not be required for exercise of the powers and
2. Documents to accompany the declaration discharge duties by the voluntary liquidator.
(i) Audited financial statements and record of business
operations of the company for the previous two years or for Section 36 requires the liquidator to form the liquidation estate in
the period since its incorporation, whichever is later; relation to corporate debtor and details the assets to be included
(ii) a report of the valuation of the assets of the company, if any in the liquidation estate.
prepared by a registered valuer.
Section 37 details the sources information which may be accessed
3. General body resolution to be passed within four weeks by the liquidator for the purpose of admission and proof of claims
of making of declaration of solvency and identification of the liquidation estate assets of the corporate
debtor.
A special resolution of the members of the company in a general
meeting requiring the company to be liquidated voluntarily and Section 38 requires the liquidat6or to receive, or collect and
appointing an insolvency professional to act as liquidator must consolidate the claims of creditors.
be passed; or
Sections 39 to 41 provide for verification, admission or rejection of
A resolution of the members of the company in a general meeting claims and determination of valuation of claims in such manner as
requiring the company to be liquidated voluntarily as a result of may be specified by the Insolvency and Bankruptcy Board of India.
expiry of the period of its duration, if any, fixed by its articles or
on the occurrence of any event in respect of which the articles Section 42 provides for appeal against the decision of the liquidator
provide that the company shall be dissolved, as the case may be rejecting a claim to the Tribunal and prima facie this right to appeal
and appointing an insolvency professional to act the liquidator may be available against the decision of voluntary liquidator also.
should be passed.
Sections 43 to 51 give detailed requirements for approval of the
4. Approval of creditors must be obtained within seven days Tribunal for avoidance by the liquidator of preferential transactions,
of general body resolution where the company owes any undervalued transactions, transactions defrauding creditors,
debt to any person extortionate credit transactions entered into by the corporate
debtor.
If the company owes any debt to any person, approval of the
resolution for voluntary winding up of the company is required Section 52 allows the secured creditor to realize its interest
from creditors representing two-thirds in value of the debt of the security to the liquidation estate or to realize its security in the
company within seven days of general body resolution. manner specified in this section.

5. Registrar of Companies and Insolvency and Bankruptcy Section 53 lays down the priorities for distribution of assets by
Board of India to be notified about the general body the liquidator.
resolution within seven days
In this connection reference may be made to para 10 supra.
The company is required to notify the Registrar of Companies and
the Insolvency and Bankruptcy Board of India about the general Dissolution of corporate person in voluntary winding up to
body resolution for voluntary winding up of the company within be ordered by NCLT
seven days of such general body resolution or within seven days
of the subsequent approval of the general body resolution by the Where the affairs of the corporate person have been completely
creditors, as the case may be. wound up, and its assets completely liquidated, the liquidator shall
make an application to NCLT for the dissolution of such corporate
6. Liquidation commences from the date of general body person and NCLT shall pass an order on the application that the
resolution corporate debtor shall be dissolved from the date of that order
and the corporate debtor shall be dissolved accordingly. A copy
The voluntary liquidation proceedings in respect of the company of the dissolution order has to be forwarded, within 14 days from
shall be deemed to have commenced from the date of passing the date of the order, to the authority with which the corporate
of the general body resolution for voluntary winding up of the person is registered i.e. Registrar of Companies concerned in
company, if the resolution has been approved by the creditors case of company and Registrar of LLP in case of limited liability
The provisions of sections 35 to 53 of the Code shall apply to partnership. CS

voluntary liquidation proceedings for corporate persons with such

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ARTICLE

the Insolvency and Bankruptcy Code, 2016

INTRODUCTION of the Board have been made effective
from 19 August 2016.

W
inding up of companies has for
long been a matter of concern This Code aims to consolidate and
in India. The Companies Act amend the laws relating to the
1956 govern the provisions of winding up reorganization and insolvency resolution
of companies but as experience would of these entities in India with time being
reiterate, it is a long and cumbersome of essence and to promote
process with little expertise available on entrepreneurship, availability of credit
the subject. Many company secretaries and balance the interests of all the
do not venture into the field. As is often stakeholders.
Mahesh A. Athavale*, FCS jokingly said, topics of winding up are left
for ‘option’ during student days, since who Once effective, this Code shall repeal the
Partner, Kanjmag & Company would remain ever with a company that Presidency Towns Insolvency Act, 1909
Company Secretaries, Pune is being wound up! and the Provincial Insolvency Act, 1920
maheshathavale@[Link]
There are many company secretaries who currently act as
liquidators in voluntary winding up. The scope for
company secretaries will now get widened manifold under
the Insolvency and Bankruptcy Code and they can act as
Insolvency professionals for all types of winding up,
insolvency, bankruptcy – be it for corporates, individuals or
firms. They can also appear before the adjudicating
authorities and represent their clients.

But time has come when company and amend eleven other laws including
secretaries – more specifically those in Indian Partnership Act, 1932, Central
practice – need to prepare for the Excise Act, 1944, Customs Act, 1962,
immense opportunities being opened up. Finance Act 1994, Companies Act, 2013,
Anagha Anasingaraju The Insolvency and Bankruptcy Code, Limited Liability Partnership Act, 2008,
2016 (Code) was introduced in India Sick Industrial Companies (Special
Partner, Kanjmag & Company,
Company Secretaries, Pune recently to bring all matters relating to Provisions) Repeal Act, 2003,
insolvency, liquidation, voluntary Securitization and Reconstruction of
[Link]@[Link]
liquidation or bankruptcy of companies, Financial Assets and Enforcement of
LLPs, partnership firms and individuals Security Interest Act, 2002 (SARFAESI),
under a single legislation. Income- tax Act, 1961 and Payment and
Settlement Systems Act, 2007.
The Insolvency and Bankruptcy Code,
2016 was published in the Official Gazette APPLICABILITY OF THE CODE
on 28 May, 2016. It shall come into effect The provisions of this Code apply to:
on the date as may be specified by the
Central Government by way of notification (a) any company incorporated under the
in the Official Gazette. Certain sections of Companies Act, 2013 or under any
the Code dealing with establishment of the previous company law;
Insolvency and Bankruptcy Board of India (b) any other company governed by any
have been made effective from 05 August special Act for the time being in force,
2016 and some definitions and other except in so far as the said provisions
* Past President, The Institute of Company Secretaries of India.
sections also relating to the establishment are inconsistent with the provisions of

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who can act as Agencies, but the Board has powers to regulate
the setting up and working of such Agencies. The Board shall
specify model bye laws regulating such Agencies. There can
be more than one such Agencies registered with the Board.

The Agencies shall have the following functions:

(a) grant membership to persons who fulfil all requirements or
suspend or cancel membership
(b) lay down standards of professional conduct for its members
and monitor their performance
(c) safeguard the rights, interests and privileges of insolvency
professionals
(d) redress consumer grievances

As provided in the Code, only registered Insolvency

Professionals (Professional) shall be allowed to render services
under the Code after being enrolled as a member of the
Agency. The Professional may choose to obtain membership
of any Agency to register with the Board. The Board has the
such special Act; power to specify the category of persons / professionals who
(c) any Limited Liability Partnership incorporated under the are eligible to act as a Professional.
Limited Liability Partnership Act, 2008;
(d) such other body incorporated under any law for the time To illustrate and draw a parallel, ICSI may be considered to an
being in force, as the Central Government may, by Insolvency Professional Agency and members of ICSI who
notification, specify in this behalf; and register with ICSI as such, may be considered as Insolvency
(e) partnership firms and individuals Professionals.

SCHEME OF THE CODE The code provides for the following adjudicating authorities:
The Code provides for establishment of the Insolvency and
Bankruptcy Board of India (Board). This Board is a body a. Debt Recovery Tribunal (DRT) dealing with insolvency and
corporate, having perpetual succession, common seal, can bankruptcy of individuals and partnership firms. Appeal
enter into contracts, can sue or be sued and can hold property from orders of DRT shall lie with the Debt Recovery
in its own name. The head office of the Board shall be situated Appellate Tribunal (DRAT)
in NCR. b. NCLT dealing with insolvency, bankruptcy, winding up of
companies, LLP, corporate debtors. Appeals from orders
The Board shall, inter alia, have the following powers: of NCLT lie with the NCLAT
a. to manage registration of insolvency professional agencies, c. Appeals from orders of the Board pertaining to Agencies,
insolvency professionals, information utilities Professionals and information utilities shall lie with the
b. to specify eligibility requirements for registration of the NCLAT
above
c. to levy fees and charges for such registration The Code is divided into five parts:
d. to lay down rules and regulations governing the above Part I - Preliminary
e. to decide the curriculum for examination of the insolvency Part II - Insolvency Resolution and Liquidation for Corporate
professionals for their enrolment as members of the Persons comprising of seven Chapters
agencies Part III - Insolvency Resolution and Bankruptcy for Individuals
f. to carry out inspection and investigation of the above and Partnership Firms comprising of seven Chapters
persons and pass appropriate orders, to call for any Part IV - Regulation of Insolvency Professionals, Agencies and
information and records Information Utilities comprising of seven Chapters
g. to monitor performance of the above persons and pass Part V - Miscellaneous
necessary directions
h. to make model bye laws to be adopted by insolvency
PART II - INSOLVENCY RESOLUTION AND
professional agencies LIQUIDATION FOR CORPORATE PERSONS
Part II deals with matters relating to insolvency and liquidation
The Code provides for establishment of Insolvency Professional of corporate debtors where minimum amount of default is Rs.
Agencies (Agencies). Such Agencies shall be required to 1 lakh. The creditor/s or the corporate debtor itself may initiate
register with the Board and obtain a certificate of registration to the process as per Chapter II of this Part.
be able to carry on its activity as an Agency. The Code Initiation of corporate insolvency resolution process by
presently does not stipulate the eligibility criteria of persons corporate applicant.

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ARTICLE

Verifictaion of
The resolution professional
appointed for the corporate
Admission or corporate insolvency resolution process
Filing of an application Default by
application by a rejection of shall commence from the date of
by corporate applicant corporate debtor
adjudicating authority application admission of the application

insolvency resolution process acts

Initiation of corporate insolvency resolution process by
financial creditor:
as the liquidator for the purposes
of liquidation. On appointment of a
liquidator all powers of the board of
directors, key managerial personnel
corporate insolvency
Filing of an alongwith record of the
Verifictaion of Admission resolution process shall
application default, name of the
application by or commence from the
by creditor or insolvency professional
a adjudicating rejection of date of admission of the

and the partners of the corporate

debtor itself proposed to act as an interim
authority application application
resolution professional

debtor cease to have effect and vest

Initiation of corporate insolvency resolution process by in the liquidator.
operational creditor:
are ordinarily carried out by the liquidator.
operational creditor can
admission or rejection of
6. The resolution professional shall also assist the work with
operational creditor file an application before
adjudicating authority
application the committee of creditors.
7. The resolution plan submitted to the professional shall be
approved by the committee of creditors. Such approved
plan shall be submitted to the Adjudicating Authority by the
corporate insolvency
deliver a demand notice on
unpaid operational debtor
Where no such reply or resolution process shall professional.
payment is received commence from the date of
admission of the application 8. If the Adjudicating Authority is satisfied with the plan
meeting the requirements, it shall approve the plan which
shall be binding on the debtor, its employees, members,
alongwith the copy of an corporate debtor shall reply creditors, guarantors and other stakeholders.
invoice demanding payment to such a notice or pay within
of the amount involved in 10 days of the receipt of 9. After approving the plan, any moratorium orders passed by
the default the notice
the Adjudicating Authority shall cease to have effect.
10. The professional shall hand over all records relating the
In each of the steps above CS has a role to play. Drafting / conduct of the insolvency resolution process and plan to
replying Notices, applications, appearances before the the Board.
authorities, making arguments, convening and conducting
meetings of Creditors, drafting of plan for revival / winding up , Liquidation process
can be done well by CS.
The adjudicating authority may pass an order requiring the
Time limit for completion of the process corporate debtor to be liquidated in the following cases:
- Non receipt of the resolution plan
The corporate insolvency resolution process must be completed - Rejection of the resolution plan for the non-compliance of
within a period of 180 days from the date of admission of the the requirements specified
application which can be extended by 90 days on an application - Decision of the committee of creditors to liquidate the
filed by insolvency professional. corporate debtor
- Resolution plan approved by the Adjudicating Authority is
Procedure on admission of application contravened by the concerned corporate debtor or any
other person whose interests are prejudicially affected by
1. The Adjudicating Authority shall appoint the interim such contravention.
insolvency professional within 14 days of commencement The resolution professional appointed for the corporate
of insolvency. The professional proposed by the creditors insolvency resolution process acts as the liquidator for the
shall be appointed as interim professional if no disciplinary purposes of liquidation. On appointment of a liquidator all
proceedings are pending against him. powers of the board of directors, key managerial personnel
2. Such interim professional shall be appointed for 30 days. and the partners of the corporate debtor cease to have effect
3. Such professional shall carry out duties / actions and have and vest in the liquidator.
powers as per section 17, 18, 19, 20, 21. The liquidators have the following powers and duties :
4. The interim resolution professional may also act as the • Verifying claims of all the creditors.
resolution professional as directed by Adjudicating • Taking into his custody all the assets, property, effects and
Authority. actionable claims of the corporate debtor.
5. The powers and functions of the professional are those that • Valuing the assets and property of the corporate debtor

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ARTICLE
duties and obligations and functions as liquidator.
• Applying to the Adjudicating Authority for such orders or
directions as maybe necessary for the liquidation of the
corporate debtor and to reporting the progress of the
liquidation process.
• Consulting any of the stakeholders entitled to a distribution
of proceeds.
• The liquidator holds the liquidation estate as a fiduciary for
the benefit of all the creditors.
• Accessing any information systems for the purpose of
admission and proof of claims and identification of the
liquidation estate assets relating to the corporate debtor
• Consolidation and verification and determination of the
value of all the claim.
• Applying to the Adjudicating Authority for avoidance of
preferential transactions, extortionate credit transaction,
dissolution of corporate debtor.

Even a glance at the above would make us understand the

opportunities ahead. CS need to start absorbing and studying
the past and present schemes of Reserve Bank of India,
practices prevalent in the Banking Industry for One time
settlements, concessions given to stressed assets , BIFR
decisions in finalizing revival Schemes and manner in which
Operating Agencies ( OAs) had worked under SICA.
FAST TRACK INSOLVENCY RESOLUTION
and preparing a report of the same. PROCESS
• Carrying on the business of the corporate debtor for its The Code also provides for Fast Track insolvency resolution
beneficial liquidation. process which may be applicable to certain categories of
• Selling the immovable and movable property and actionable entities as specified in section 55 of the Code. In such a case,
claims of the corporate debtor in liquidation by public the insolvency resolution process has to be completed within a
auction or private contract, with power to transfer such period of 90 days from the trigger date.
property to any person or body corporate, or to sell the
same in parcels.
VOLUNTARY LIQUIDATION OF
• Drawing, accepting, making and endorsing any negotiable CORPORATE PERSONS
instruments including bill of exchange, hundi or promissory A corporate person (which includes companies as well as
note in the name and on behalf of the corporate debtor. LLPs) may put the entity into voluntary winding up by following
• Taking out, in his official name, letter of administration to the provisions of Chapter V of Part II of the Code and also the
any deceased contributory and doing any other act conditions and procedural requirements that may be specified
necessary for obtaining payment of any money due and by the Board.
payable from a contributory or his estate which cannot be
ordinarily done in the name of the corporate debtor. Procedure for voluntary liquidation
• Obtaining professional assistance from any person or a. Declaration of solvency from majority of the directors of the
appointing any professional, in discharge of his duties, company verified by an affidavit
obligations and responsibilities. b. Audited financial statements for last two years and report of
• Inviting and settling claims of creditors and claimants and the valuation of the assets of the company
distributing proceeding. c. Special resolution should be passed within four weeks
• Instituting or defending any suit, prosecution or other legal (Seven days in case company owes any debt to any
proceedings, civil or criminal, in the name of on behalf of person, creditors representing two thirds in value of the
the corporate debtor. debt of the company) of a declaration in the general
• Investigating the financial affairs of the corporate debtor for meeting requiring the company to be liquidated voluntarily
determining the undervalued or preferential transactions. and appointment of an insolvency professional to act as the
• Taking all such actions, steps, signing, executing and liquidator; or a resolution of the members of the company
verifying any paper, deed, receipt document, application, in a general meeting requiring the company to be liquidated
petition, affidavit, bond or instrument and for such purpose or any event in respect of which the articles provide that the
to use the common seal, if any, as may be necessary for company shall be dissolved, as the case may be and
liquidation, distribution of assets and in discharge of his appointment of an insolvency professional to act as the

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 OPPORTUNITIES FOR COMPANY SECRETARIES UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016
ARTICLE

liquidator: and partnership firms.

d. Filing of necessary forms within seven days for intimating
the Registrar of Companies about the resolution passed to A bankruptcy application may be made by a debtor or a
liquidate the company or the subsequent approval by the creditor. A professional is appointed for the resolution process.
creditors. Such a professional also acts as a bankruptcy trustee. The
e. Voluntary liquidation proceedings in respect of a company trustee has role similar to that of a professional in above cases.
shall be deemed to have commenced from the date of Additionally, he also has to play a role in administration and
passing of the resolution distribution of the estate of the bankrupt.
f. Where the affairs of the corporate person have been
completely wound up, and its assets completely liquidated, OPPORTUNITIES FOR COMPANY SECRETARIES
the liquidator can make an application to the Adjudicating The Code does not specify which persons can act as
Authority for the dissolution of such corporate person. insolvency professionals. However, it does say that the Board
g. On such application the Adjudicating Authority shall pass may specify the categories of professionals or persons
an order for dissolution possessing such qualifications and experience in the field of
h. A copy of the order is to be forwarded to the authority with finance, law, management, insolvency or such other field, as it
which the corporate was registered with fourteen days deems fit. Company secretaries have experience in the field
of law, and management. There are many company secretaries
Insolvency Resolution and Bankruptcy for Individuals and who currently act as liquidators in voluntary winding up. The
Partnership Firms scope has now been widened manifold under the Code.
Company Secretaries can act as Insolvency professionals for
Part III of the Code applies to matters relating to fresh start, all types of winding up, insolvency, bankruptcy – be it for
insolvency and bankruptcy of individuals and partnership firms corporates, individuals or firms. Further, since the adjudicating
where the amount of the default is not less than Rs. 1,000. authority except for individuals and firms is the NCLT, company
secretaries can appear before such authority and represent
A new concept of “fresh start” is introduced in this Chapter. their clients. This will open new avenues of practice for
This Code, through this process covers individuals as small as professionals who would like to work with financial institutions
having gross annual income of less than Rs. 60,000 and who on debt restructuring projects, one time settlements and the
are unable to pay their debts. Such a person can make an like. It will also give a chance to work for the society by helping
application to the DRT through a Professional for a fresh start the poor and marginalized sections.
for discharge of his debt. On making such application, the
Professional shall examine the application and submit his CONCLUSION
report to the DRT either recommending acceptance or rejection From the above, it can be seen that the Code aims to regulate,
of the application. On receipt of such report, the DRT shall streamline and fast-track the process of winding up and
pass its order within 14 days either accepting or rejecting the liquidation in India. A major cause of concern for companies
application. When the application is accepted, the moratorium investing in India has been that getting out or closing down is
period shall commence which shall cease to have effect at the very difficult. With the ‘Make in India’ initiative of the
end of 180 days. Any objections received from creditors are to Government, it is imperative that such concerns of the industry
be examined by the professional. Before expiry of the are taken into account and acted upon. Introduction of the
moratorium period, the DRT shall pass orders discharging the Code is one such step in the right direction. If the Code
debtor from qualifying debts, penal interest, penalties and actually is implemented in the manner in which it is drafted, it
other sums as provided in the Code. will make India a business friendly place. Investors will not be
concerned over the period it takes to wind up its affairs.
Any other debtor – either individual or a firm - who has Concerns over long and arbitrary recovery procedures will
committed a default may also apply to the DRT for initiating abate. They will have a say in the restructuring and its interests
insolvency resolution process assisted by a professional. A will be protected in time bound manner. Debtors will not be
creditor may also apply under this Part. In this case also, the able to run away easily. Since professionals will manage the
professional is required to discharge his duties of monitoring insolvency and winding up processes, law will be followed in
the resolution process and submit his report to the DRT upon letter and in [Link] scope of the Code is far reaching. Even
which the application is either accepted or rejected. The persons with annual income of less than a lakh of rupees are
professional then carries on the duties as prescribed in the covered in the Code. This will include even small and marginal
Code for resolving this inability of the debtor and submitting a farmers who are indebted and are losing their lives for not
repayment plan. He shall also summon the meeting of being able to repay the debt and interest thereon. This will
creditors and get the plan approved from them. Such approved have a very wide social impact. Thus, the Code is a welcome
plan is then submitted to the DRT which shall then pass step in the Indian context. Professionals like company
appropriate orders. The professional is also instrumental in secretaries have immense opportunities under the Code to
implementation and supervision of the repayment plan. prove their mettle and contribute in helping the businesses to
survive and grow. It is time to diversify into new fields and
Chapter IV of this Part deals with bankruptcy for individuals make an impact. CS

92 I
SEPTEMBER 2016 CHARTERED SECRETARY
 Research
Corner
2
n A STUDY OF THE SEPARATION OF THE POSITION OF CHAIRMAN AND CEO AND ITS IMPACT ON CORPORATE GOVERNANCE

n ICSI-CCGRT ANNOUNCES UNIQUE ALL INDIA RESEARCH PAPER COMPETITION ON VALUATIONS

n NATIONAL TRAINNING PROGRAMME ''EMANCIPATE WOMEN PRODIGY TO RULE THE ROOST''

I
CHARTERED SECRETARY SEPTEMBER 2016 93
 [Link] [Link] [Link]

TO EMBRACE THE CHANGE, PREPARE!

GET AHEAD WITH
WEBINAR SERIES ON

Goods and Services Tax - the biggest landmark reform of the country since independence, will
be a game changer for our economy.
The Institute of Company Secretaries of India is a premier national body established by an Act of
Parliament. It functions under the jurisdiction of the Ministry of Corporate Affairs, Government of India.
The Institute is committed to promoting good governance in its journey of over 48 years and Company
Secretary is designated as a Key Managerial Personnel under the Companies Act, 2013.
To make its members, strong cadre of students and general public at large future ready and also to
sensitize them in the larger perspective, the Institute :
• is celebrating GST Awareness Month, witnessing activities like organizing
of Awareness Programs, GST awareness walks, webinars, seminars,
sharing of knowledge material, panel discussions, special issue on GST
etc.
• formulated a core group to deliberate on the intricacies of the proposed law
and for making submissions to Government
• launched GST Corner, at the Institute’s website containing the knowledge material and updates
about GST
• joined hands with industry chambers, for workshops and knowledge seminars on GST.
Continuing the effort, the Institute is launching a series of Master Classes on GST through
webinars on the subject.
Schedule of Master Classes on GST (2 pm - 4 pm)
Sl. No. Day & Date Topic
1. Friday, 2 September, 2016 GST- An overview and professional opportunities for professionals
2. Monday, 5 September, 2016 Procedural aspects of GST – Input Tax Credit, Matching Principle,
filing of returns, refunds, assessment, etc.
3. Friday, 9 September, 2016 Constitutional provisions vis-à-vis indirect taxation
4. Friday, 16 September, 2016 Supply of goods and services under GST regime
5. Friday, 23 September, 2016 Valuation issues under GST

Webinar is open to all and can be accessed at the weblink:

[Link]
GST CORNER WEBLINK TO WEBINAR
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A Study of the separation of the position of

RESEARCH PAPER
Chairman and CEO and its impact on
Corporate Governance
INTRODUCTION need to make an informed contribution at
the board meetings and all directors are

A
fter the recent financial crisis, given an opportunity to speak at Board
listed public companies globally Meetings. The CEO manages; the chair
are under pressure from activist oversees management. (Figure 1)
shareholders, institutional investors, proxy
advisory firms and regulators pertaining to As per UK Combined Code, 2014, the
the issue of separating the role of Chairman Chairman is responsible for setting
and Chief Executive Officer (CEO), with a the board’s agenda and ensuring that
view to achieving independent leadership adequate time is available for discussion
Shiv Nath Sinha, ACS on the board. Good Corporate Governance of all agenda items, in particular strategic
encourages the separation of the role of issues. The Chairman should also promote
Associate Professor Chairman and Chief Executive Officer in a culture of openness and debate by
Institute of Management Technology two persons rather one person being the facilitating the effective contribution of
Nagpur
Chairman and Chief Executive Officer. non-executive directors in particular and
snsinha@[Link] Companies around the globe have during ensuring constructive relations between
the recent past have started separating executive and non-executive directors.
the role either voluntarily or through The Chairman is responsible for ensuring
shareholder activism. This article attempts that the directors receive accurate, timely
to study specific provision UK, USA, South and clear information. The Chairman
Africa, Australia and India. The article also should ensure effective communication
analyses the BSE 500, BSE 200, BSE 100, with shareholders.
BSE 30, NASDAQ 100 and FTSE 100
companies on the separation of the role SHOULD THE POSITION OF
of Chairman and Chief Executive Officer. CHAIRMAN AND CHIEF
CHIEF EXECUTIVE OFFICER EXECUTIVE OFFICCER BE
(CEO) AND CHAIRMAN COMBINED OR SEPARATED?
The Chief Executive Officer has the
executive responsibility for the running Few issues in corporate governance
of the company’s business. While the are as contentious as the question of
Chairman has responsibility for the running whether the roles of Chairman and CEO
of the Board, ensuring that the Board should be separated or combined. Does
meets frequently and that all the directors separating the roles really provide better
have access to all the information they governance, or is it simply window-
dressing for shareholders with little impact
on board effectiveness?

Different experts on Corporate Governance

have different opinion on the separation
of the position of Chairman and Chief
Executive Officer. Some experts believe
that separating the role of CEO and
Chairman will have a very positive impact
on the Board room performance. Their
arguments are that “the very existence
of the Board is based on the need for
accountability. The board exists to keep

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RESEARCH PAPER

management accountable for the vast discretionary power it Research carried out by Coles J.W., McWilliams, V.B. & Sen
wields. Thus, when the Chairman of the Board is also the CEO, N. (2001) suggests that CEO as a Chair may impede the board
it makes accountable to a body led by management. It can from their duties and responsibilities including assessing and
mean that the CEO is put in the position of evaluating his own monitoring performance of the management. Such a corporate
performance.” In simple words, the CEO runs the company and scenario would create agency costs resulting in ineffective board
the Chairman runs the board, one of whose responsibilities it is to and reducing overall performance of the corporation. Core, J.E.,
monitor the CEO. If the Chairman and the CEO are one and the Holthausen, R.W. & Larcker, (1999) found that CEO duality leads
same, it is hard for the board to criticize the CEO or to express to weak governance structures. Finkelstein & D’Aveni, (1994)
independent opinions. When the CEO is also the Chairman, suggests that when a Board Chairman is also a CEO, “will gain
there is too great a temptation to tilt things towards protecting sufficient controlling power to gain more private benefits”. Abdulla
CEO’s career interest. Separation of the role would lead to (2004) posited that “the firm’s managers’ ability to determine the
more objective evaluation of the CEO and create environment board agenda and the flow of information is predicted to be much
of greater accountability. Another argument in favor of the stronger when the board chairman is also CEO than when the firm
separation of the role is that a Non-Executive Chairman can serve adopts a non-dual structure”. Brickley et al., (1997) advocated
as a valuable, sound board mentor and advocate to the CEO. that when the CEO and chairman posts are separated has both
costs and benefits, and it is more of a cost to the larger firms
Some experts believe that separating the role CEO and Chairman than the benefits.
will have a negative impact on the Board room performance. Their
argument is that “the company should be led by one person” Baliga, Moyer, and Rao (1996) examine companies that
and splitting the roles might set up two power centers, which announce a separation (or combination) of the chairman and
would impair decision making. Stewardship theory which is
CEO roles. They find no abnormal positive (or negative) stock
based on the principle of “unity of command” argues that having
price reaction to these announcements. They also find no material
clear and unambiguous authority concentrated in one person is
impact on subsequent operating performance. They conclude that
essential to effective management. Unity of command creates
clear lines of authority to which the management (and the board) although a combined Chairman / CEO “may increase potential
can respond more effectively. In an environment where strong, for managerial abuse, it does not appear to lead to tangible
direct, stable, and unconfused leadership is seen as critical to manifestations of that abuse.” Similarly, Boyd (1995) provides a
organizational success, this kind of legitimacy is an important meta-analysis of studies on Chairman / CEO duality and finds
signal to stakeholders about who is accountable. no statistically significant relationship between the independent
status of the chairman and future operating performance.
Some corporate governance experts believe that combining
the two positions does not mean that the CEO who is also the CORPORATE GOVERNANCE NORMS
Chairman will inevitably manipulate his board, but it does give ACROSS THE GLOBE
him that opportunity.
l Corporate Governance Code, 2014 : UK
In brief, If Roles are combined; it ensures the following positive
UK Corporate Governance Code (formerly the Combined Code)
points:
sets out standards of good practice in relation to board leadership
l Ensures strong & central leadership; and effectiveness, remuneration, accountability and relations
l Unambiguous leadership with shareholders. The code has incorporated specific provision
l Increases efficiency; relating to division of responsibilities between the Chairman
l Superior knowledge of the organization; and CEO. The main principle and the supporting principle of
the Code are:
If roles are not separated, it may result in following consequences:
l Lack of oversight; Section A: Leadership
l Unchecked power / Concentration of power;
l Diminishes the independence of a board; A.2: Division of Responsibilities
l Board’s role is to hire & fire the CEO. Unified role may create
conflict of Interest. Main Principle
There should be a clear division of responsibilities at the
LITERATURE REVIEW head of the company between the running of the board and
Yermack (1996) reported that “firms are more valuable when the executive responsibility for the running of the company’s
the CEO and Chairperson’s positions are held separately”. business. No one individual should have unfettered powers
Fosberg (2004) opined that “Firms where the position of CEO and of decision.
Chairperson are clearly separated are likely to employ the optimal
amount of debt in their capital structure”. According to Ehikioya & Code Provision
Benjami (2009) “Firms in which CEO and Chairman of the board A.2.:1 The roles of chairman and chief executive should not be
are separated, stakeholders are likely to gain confidence on the exercised by the same individual. The division of responsibilities
firms’ ability to raise additional capital and hence there are less between the chairman and chief executive should be clearly
chances of bankruptcy of the firm”. established, set out in writing and agreed by the board.

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 A STUDY OF THE SEPARATION OF THE POSITION OF CHAIRMAN AND CEO AND ITS IMPACT ON CORPORATE GOVERNANCE

RESEARCH PAPER
l King’s Report on Corporate Governance, 2009 : holders as a whole rather than those of individual security holders
South Africa or interest groups.
The King Committee on governance issued the King Report on
Governance for South Africa – 2009 (the “Report”) and the King The board should be of sufficient size so that the requirements
Code of Governance Principles – 2009 (the “Code”), together of the business can be met and changes to the composition of
referred to as “King III” on 1 September 2009. The King Code of the board and its committees can be managed without undue
Governance stipulates the following provisions for the separation disruption. However, it should not be so large as to be unwieldy.
of the role of Chairman and CEO:
Recommendation 2.5
Principles: The chair of the board of a listed entity should be an
The Board should elect a chairman of the board who is an independent director and, in particular, should not be the
independent non-executive director. The CEO of the company same person as the CEO of the entity.
should not also fulfill the role of chairman of the board.
Recommended Practice: Commentary:
1. The members of the board should elect a chairman on an The chair of the board is responsible for leading the board,
annual basis. facilitating the effective contribution of all directors and promoting
2. The chairman should be independent and free of conflict constructive and respectful relations between directors and
upon appointment. between the board and management. The chair is also
3. A lead independent director should be appointed in the case responsible for setting the board’s agenda and ensuring that
where an executive chairman is appointed or where the adequate time is available for discussion of all agenda items, in
chairman is not independent or conflicted. particular strategic issues.
4. The appointment of a chairman, who is not independent,
should be justified in the integrated report. Having an independent chair can contribute to a culture of
5. The role of the chairman should be formalised. openness and constructive challenge that allows for a diversity
6. The chairman’s ability to add value, and his performance of views to be considered by the board.
against what is expected of his role and function, should be
assessed every year. Good governance demands an appropriate separation between
7. The CEO should not become the chairman until 3 years have those charged with managing a listed entity and those responsible
lapsed. for overseeing its managers. Having the role of chair and CEO
8. The chairman together with the board, should consider the exercised by the same individual is unlikely to be conducive to the
number of outside chairmanships held. board effectively performing its role of challenging management
9. The board should ensure a succession plan for the role of and holding them to account.
the chairman.
If the chair is not an independent director, a listed entity should
l The Corporate Governance Principles and
consider the appointment of an independent director as the
Recommendations, 2014: Australia
deputy chair or as the “senior independent director”, who can
The ASX Corporate Governance Council Principles and fulfill the role whenever the chair is conflicted. Even where the
Recommendations (“Principles and Recommendations”) were chair is an independent director, having a deputy chair or senior
introduced in 2003. The corporate governance code has independent director can also assist the board in reviewing the
been amended in 2007, 2010 and 2014. These Principles and performance of the chair and in providing a separate channel
Recommendations set out recommended corporate governance of communication for security holders (especially where those
practices for all entities listed on the Australian Securities communications concern the chair).
Exchange (ASX). ASX Corporate Governance principles
and recommendations provide the following principles and The role of chair is demanding, requiring a significant time
recommendations pertaining to the separation of the role of commitment. The chair’s other positions should not be such that
Chairman and CEO. they are likely to hinder effective performance in the role.
OECD Corporate Governance Principles, 2015
Principle 2: Structure the board to add value
A listed entity should have a board of an appropriate size, First published in 1999, the OECD Corporate Governance
composition, skills and commitment to enable it to discharge its Principles have since become an international benchmark for
duties effectively. policy makers, investors, corporations and other stakeholders
Commentary: worldwide. The Code has framed six Principles to help
A high performing, effective board is essential for the proper policymakers evaluate and improve the legal, regulatory, and
governance of a listed entity. The board needs to have an institutional framework for corporate governance, with a view to
appropriate number of independent non-executive directors who support economic efficiency, sustainable growth and financial
can challenge management and hold them to account, and also stability. The following principle provides for the separation of
represent the best interests of the listed entity and its security the role of Chairman and CEO of a company.

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RESEARCH PAPER

Principle VI : The responsibilities of the board Consequent to the enactment of the Companies Act, 2013,
The corporate governance framework should ensure the Securities and Exchange Board of India (SEBI) revamped Clause
strategic guidance of the company, the effective monitoring of 49 of the listing agreement in April, 2014. One of the major
management by the board, and the board’s accountability to the changes that have been incorporated under the non-mandatory
company and the shareholders. requirements of Clause 49 is about the separation of the posts
of Chairman and CEO.
The board should be able to exercise objective independent
judgement on corporate affairs. Non Mandatory Provisions:
In order to exercise its duties of monitoring managerial
performance, preventing conflicts of interest and balancing Separate posts of Chairman and CEO
competing demands on the corporation, it is essential that
the board is able to exercise objective judgement. In the first The company may appoint separate persons to the post of
instance, this will mean independence and objectivity with Chairman and Managing Director/CEO.
respect to management with important implications for the
composition and structure of the board. Board independence in COMPANIES ACT, 2013
these circumstances usually requires that a sufficient number Companies Act, 2013 has incorporated Section 203, which
of board members will need to be independent of management. provides for the separation of the role Chairman and Chief
Executive Officer / Managing Director.
In countries with single tier board systems, the objectivity of
the board and its independence from management may be As per Section 203 (1) read with Rule 8 of Companies
strengthened by the separation of the role of chief executive (Appointment and Remuneration of Managerial Personnel) Rules,
and Chair. Separation of the two posts is generally regarded as 2014, every listed company and every other public company
good practice, as it can help to achieve an appropriate balance having a paid-up share capital of ten crore rupees or more shall
of power, increase accountability and improve the board’s have the following whole-time key managerial personnel’s:
capacity for decision making independent of management.
The designation of a lead director is also regarded as a good (i) Managing director, or Chief Executive Officer or manager
practice alternative in some jurisdictions, if that role is defined with and in their absence, a whole-time director;
sufficient authority to lead the board in cases where management (ii) Company secretary; and
has clear conflicts. Such mechanisms can also help to ensure (iii) Chief Financial Officer:
high quality governance of the enterprise and the effective Provided that an individual shall not be appointed or
functioning of the board. reappointed as the chairperson of the company as well as the
managing director or chief executive officer of the company
The Chairman or lead director may, in some countries, be at the same time unless
supported by a company secretary. In the case of two tier board (a the articles of such a company provide otherwise; or
systems, consideration should be given to whether corporate (b) the company does not carry multiple businesses:
governance concerns might arise if there is a tradition for the head
REPORT OF THE COMMITTEE TO REVIEW GOVERNANCE
of the lower board becoming the Chairman of the Supervisory
Board on retirement. OF BOARDS OF BANKS IN INDIA
RBI constituted a committee under the chairmanship of P.J.
Securities and Exchange Commission (SEC) Rules,
Nayak to Review the Governance of Boards of Banks in India on
2010 : USA 20th January, 2014. The Committee submitted its report to RBI
Although in the USA, there is no regulatory requirement for on May 12, 2014. One of the recommendation of the report is to
separation of roles of the Chairman and CEO. Securities and separate the position of bank Chairman and CEO.
Exchange Commission (SEC) Rules requires all listed companies
to disclose the following information pertaining to the Board Recommendation 5.11: The positions of bank Chairman and
leadership structure: CEO should be separated during Phase 3 of the transition
Board Leadership Structure: process.
SEC rules, 2010 require disclosure about:
1. A company’s board leadership structure, including whether
ANALYSIS OF LISTED COMPANIES IN INDIA:
the company has combined or separated the chief executive BASED ON THE SEPARATION OF THE ROLE OF
officer and chairman position, and why the company believes
its structure is the most appropriate for the company. CHAIRMAN AND CEO
2. In certain circumstances, whether and why a company has BSE 500 Companies
a lead independent director and the specific role of such Analysis: Out of BSE 500 companies, 46% of the companies
director. have separated the role of Chairman and CEO between two
individuals, while 43% of the companies have not separated the
CORPORATE GOVERNANCE NORMS IN INDIA role. Though 11% of the companies have separated the role,
CLAUSE 49 OF THE LISTING AGREEMENT but the two individuals who occupy the position of Chairman and

98 I
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 A STUDY OF THE SEPARATION OF THE POSITION OF CHAIRMAN AND CEO AND ITS IMPACT ON CORPORATE GOVERNANCE

RESEARCH PAPER
CEO are relatives.

BSE 500 Government Companies CEO are relatives.

BSE 30 Companies

Analysis: Out of Government companies, which are among the

BSE 500 companies, only 8% of the companies have separated
the role of Chairman and CEO between two individuals, while
92% of the companies have not separated the role. This shows
that the majority of the public sector companies, which are listed Analysis: Out of BSE 30 companies, 64% of the companies
on BSE, have not separated the role. have separated the role of Chairman and CEO between two
individuals, while 24% of the companies have not separated the
BSE 200 Companies role. Though 12% of the companies have separated the role, but
the two individuals who occupy the position of Chairman and CEO
are relatives. A comparative study of BSE 500, BSE 200, BSE
100 & BSE 30 companies portrays that the top 30 companies are
better in terms of separation of the role of Chairman and CEO.

ANALYSIS OF LISTED COMPANIES IN USA AND

UK: BASED ON THE SEPARATION OF THE ROLE
OF CHAIRMAN AND CEO
NASDAQ 100 Companies

Analysis: Out of BSE 200 companies, 58% of the companies

have separated the role of Chairman and CEO between two
individuals, while 35% of the companies have not separated the
role. Though 7% of the companies have separated the role, but
the two individuals who occupy the position of Chairman and
CEO are relatives.

BSE 100 Companies

Analysis: Out of BSE 100 companies, 61% of the companies
have separated the role of Chairman and CEO between two
individuals, while 34% of the companies have not separated the
role. Though 5% of the companies have separated the role, but Analysis: Out of NASDAQ 100 companies, 70% of the
the two individuals who occupy the position of Chairman and companies have separated the role of Chairman and CEO

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 A STUDY OF THE SEPARATION OF THE POSITION OF CHAIRMAN AND CEO AND ITS IMPACT ON CORPORATE GOVERNANCE
RESEARCH PAPER

between two individuals, while 29% of the companies have not the position of Chairman and CEO. Slowly the trend in almost all
separated the role. Though 1% of the companies have separated the countries is towards the separation of the role voluntarily. As
the role, but the two individuals who occupy the position of critics have come to believe that not separating the role allows little
Chairman and CEO are relatives. transparency into the CEO’s actions, and as such these can go
unmonitored, paving the way for conflicts of interest. With a single
FTSE 100 Companies executive holding both titles, it has been argued that the company’s
entire decision-making process lies in the hands of one person, with
little in the form of checks and balances. Though the fact is that there
is no conclusive evidence linking the separation of the positions of
CEO and Chairman to the firm’s performance, but, few studies in the
past have found that companies with separate CEOs and Chairman
consistently outperform those companies that combine the role.
With the provisions incorporated under the Companies Act, 2013
and Clause 49 of the listing agreement, recommending the Indian
listed companies to separate the role, hopefully Indian public listed
companies will take a lead to separate the role more vigorously in
the near future.

Analysis: Out of FTSE 100 companies, 100% of the companies have REFERENCES
separated the role of Chairman and CEO between two individuals. Monks A.G. Robert & Minow Nell, (2012), Corporate Governance, PP-241-244, Wiley
India, 4th edition, New Delhi
Hence, Companies listed in UK are most compliant in term of the Charan, Ram (2005), Boards that Deliver, Jossey Bass, San Fransico
separation of the position of Chairman and CEO. Tricker Bob, (2010), Corporate Governance Principles, Policies and Practices, Oxford,
Third Edition, New Delhi
IMPACT OF THE SEPARATION ON RETURN ON Mallin A. Christine, (2010), Corporate Governance, Oxford, Third Edition, New Delhi
Kumar Satheesh, (2011), Corporate Governance, Oxford University Press, First Edition
EQUITY (ROE) Cluase 49 of the listing Agreement between company and the stock exchanges, (www.
[Link])
To understand whether the separation of the position of Chairman Annual Reports, 2015 of BSE 500 Companies, NASDAQ 100 Companies, FTSE 100
and CEO impacts the Return on Equity (ROE), the study compared Companies
the separation of the position in BSE 500 companies in the Year
2009-10 with 2014-15. The study measured the changes in the APPOINTMENT
Return on Equity (ROE) of those companies which had separated
the position of Chairman and CEO from 2009-10 to 2014-15. To
examine the impact on ROE, the following hypothesis was evaluated.
H1 – There is no impact of separation of position of Chairman and
NEELANCHAL HOLDINGS PVT. LTD.
CEO on ROE (A Non Banking Finance Company)
Ho – There is an impact of separation of position of Chairman and
CEO on ROE
104 Harsha House, Karampura Commercial
Complex, New Delhi - 110 015
Paired Samples Test Requires
Paired Differences t df Sig.
(2-tailed)
Mean Std. Std. 95% Confidence
Deviation Error Interval of the COMPANY SECRETARY
Mean Difference
Lower Upper
A young dynamic male with experience of 1 to 2 years
Pair 1 ROE 1-ROE 5 4.175 31.929 5.397 -6.793 15.143 .774 34 .445

Results Meritorious and dedicated in secretarial

To evaluate the hypothesis, a Paired sample T-test was conducted. matters, compliance of Corporate Laws,
Paired Sample T-test shows that the difference in ROEs between with analytical vision & writings, as per RBI
the Year 2009-10 and Year 2014-15 is not significantly impacted by directions, guidelines, understanding and
separation of role of Chairman and MD / CEO. knowledge of Accounts, Audit and capability of
CONCLUSION handling commercial correspondence will be
Traditionally, in most of the companies globally, role of the CEO
preferred.
and Chairman was played by the same individual. It was believed Interested candidate can email their C.V.
that the executive under such a structure would possess multiple
perspectives as well as the power to quickly enact corporate
With Photograph to:
initiatives. After various scams and scandals were unearthed, the neelanchalpvtltd@[Link]
regulators across the globe have recommended the separation of Mob.:09810772787

100 I
SEPTEMBER 2016 CHARTERED SECRETARY
 RESEARCH PAPER COMPETITION
CENTRE FOR
CORPORATE
GOVERNANCE,
RESEARCH &
TRAINING (CCGRT)

PCH- 4 ICSI-CCGRT
ANNOUNCES
Unique

All India Research Paper Competition

On Valuations

ICSI-CCGRT is pleased to announce unique “All India Research and intangible assets have gained paramount significance.
Paper Competition on “Valuations” with an objective of Since, every business organization deals with both tangibles and
creating proclivity towards research among its Members, both in intangibles, it is imperative to be conversant with the valuation
employment and practice. process. Further, with the passage of time the Mergers &
Acquisitions both within India and cross-border have soared,
The purpose of research is to identify specific questions and try thereby, triggering the need for espousing the valuations of
to find out a comprehensive and definitive answer. Since research tangible and intangibles. Since there are various models /
in all disciplines and subjects, must begin with a clearly defined approaches for undertaking valuations, depending upon the
goal, this study is also designed keeping those objectives in mind. sector / industry to which a company belongs and keeping in
view the regulatory structure or framework, one cannot ignore
Prologue the necessity of developing an in-depth understanding on
With the growth of business activities, the valuation of tangible valuations.

I
CHARTERED SECRETARY SEPTEMBER 2016 101
RESEARCH PAPER COMPETITION

Objectives: • The text should be typed double-spaced only on one side of

A4 size paper in MS Word, Times New Roman, 12 font size
a) To have an overview of valuations with one-inch margins all around.
b) To comprehend the approaches for valuation of tangibles • The author/s’ name should not appear anywhere else on
and intangibles the body of the manuscript to facilitate the blind review
c) To understand the Accounting Standards (India Accounting process. The research paper should be in clear, coherent
Standards, US GAAP and IFRS) applicable in valuations and concise English.
d) To ascertain the impact of valuations on Mergers & • Tables / Exhibits should be numbered consecutively in
Acquisitions Arabic numerals and should be referred to in the text as
e) To discuss case studies, where valuations have made or Table 1, Table 2 / Exhibit 1, Exhibit 2 etc.
marred the Merger & Acquisition deals. • All notes must be serially numbered. These should be
f) To comprehend the bottlenecks in valuation of tangible / given at the bottom of the page as footnotes.
intangible assets. • The following should also accompany the manuscripts on
g) To identify the grey areas in valuations separate sheets: (i) An abstract of approximately 150
h) To understand the process / methodology embraced by words with a maximum of five key words, and (ii) A brief
corporate houses in developed economies for valuation of biographical sketch (60-80 words) of the author/s describing
tangibles and intangibles and takeaways for corporate current designation and affiliation, specialization, number
houses registered in developing countries of books and articles in refereed journals, membership
number of ICSI and other membership on editorial boards
Themes on which Research Papers are invited and companies, etc.
• The research papers should reach the Competition
• Genesis of Valuations- Its Evolution, Growth and Importance. Committee on or before 31st of October, 2016 by 12 noon
• Significance of Intangibles, nature & its forms and valuation (IST).
models / approaches • Participants should email their research papers on the
• Accounting Standards (Indian, US GAAP, IFRS and other following email id: ccgrt@[Link]
developed countries accounting standards) in valuation of
tangibles / intangibles. Further Information for Authors / Participants
• The probable loopholes or lacunae in valuation of tangible
/ intangible assets. • The decision of the Reviewing Committee will be final and
• Valuation Models- Their industry / sector wise usage and binding on the participants.
hurdles faced in using the models. • The Institute of Company Secretaries of India reserves the
• Indian Companies Act, 2013 and Corporate Laws of other right to publish or refer the selected papers for various
foreign lands on Valuations. publications viz; Souvenirs, Books, Study materials
• Cases of Valuations pertaining to Cross-Border Mergers & published by the institute or in any seminar / conference /
Acquisitions. workshop / Research Programs conducted by institute
• Tax angles relating to Valuation of tangibles / intangibles. either on its own or jointly with other organizations and
• Valuation procedures during winding up of the company. also in regular course of activities of ICSI. Further, the
• Cases of failed Mergers & Acquisitions, wherein, valuations authors whose papers will be selected will receive Four
have played the spoiled sport. Program Credit Hours (PCH).
• ICSI reserves all intellectual property rights including in
Research Paper / Manuscript Guidelines particular copyright, trade mark, design and other
intellectual rights. The authors are not entitled for any
• Original papers are invited from Company Secretaries in remuneration or compensation or royalty. The participants
employment & practice, Academicians, Research Scholars / authors shall submit the Declaration Form to the institute
and other Professionals. at the time of submission of paper.
• The paper must be accompanied with the author’s name(s), • The papers will be scrutinized by an Expert Committee.
affiliations(s), full postal address, email ID, and telephone/fax • For any query / assistance, kindly contact at: ccgrt@icsi.
number along with the title of the paper on the front page. edu/+91-22-41021515/1501
• Full text of the paper should be submitted in MS Word using • 4 PCH will be awarded to the authors, whose research
Times New Roman, font size 12 on A4 size paper in 1.5 papers will be selected.
spacing, with a maximum of 5000 words.

CS Ahalada Rao V CS Ashish Garg CS Ashish Doshi

Chairman, Research Committee Chairman, Core Committee Chairman, ICSI-CCGRT
ICSI GST, ICSI Management Committee

102 I
SEPTEMBER 2016 CHARTERED SECRETARY
 TRAINING PROGRAMME FOR WOMEN EMPOERMENT
Knowledge Partner

Announces National Training Programme Exclusive for Women Empowerment

"Emancipate Women Prodigy to Rule the Roost"

Hosted by ICSI-Hyderabad Chapter PCH-6
Themes:
 Enterprising – Entrepreneurial Skills  Women Prodigy to Rule the Roost

 Women Directors – Opportunities & threats  Appreciation of Listing Regulations

 Transforming & Transcending Professionals  Regulatory Expectation from Directors
 Leadership and Organisational skills

Friday & Saturday | 7-8 October 2016

The successful participants Venue: Ramoji Film City (RFC), Hyderabad

will be awarded with
Registration Fee
training completion
certificate as referred Details Delegate Fee APS ***
under SEBI(LODR)
*Residential 5000 4000
Regulations as required for
the Directors Training ** Non Residential 4000 3000
Programme 4000
Accompanying Spouse 4000
Children 3000 3000

* Includes: One Night Stay in Double occupancy, 2 Days Lunch, 1 Day Dinner & Breakfast and Delegate kit.
** Includes: 2 Days Lunch, 1 Day Dinner & Breakfast and Delegate kit.
***Annual Participation Scheme (APS) of Hyderabad Chapter
Note: 1. The program will be commenced on 7 October 2016 at 9:30 AM and concludes on 8 October 2016 at 2.00PM
2. The successful participantsEminent speakers
will be awarded fromcompletion
with training respective fieldas referred under SEBI (Listing
certificate
Obligations And Disclosure Requirements) Regulations as required for the Directors Training Programme.

CS Ahalada Rao V CS Ramakrishna Gupta CS S. Kavitha Rani CS Mahadev Tirunagari

Council Member, ICSI & Secretary, ICSI-SIRC & Secretary, ICSI-Hyd. Chapter & Chairman, ICSI-Hyd. Chapter &
Program Director Program Coordinator Program Convener Program Facilitator

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1ST GLOBAL CONGRUENCE

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 1ST GLOBAL CONGRUENCE

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1ST GLOBAL CONGRUENCE

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 1ST GLOBAL CONGRUENCE

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1ST GLOBAL CONGRUENCE

108 I
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 1ST GLOBAL CONGRUENCE

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 Legal World
3
n CANARA BANK V. NUCLEAR POWER CORPORATION OF INDIA & ORS [SC]

n WEXFORD FINANCIAL INC PANAMA V. BHEL[SC]

n TAMILNADU TERMINATED FULL TIME TEMPORARY LIC EMPLOYEES ASSOCIATION V. S.K. ROY, THE
CHAIRMAN, LIC[SC]

n PEPSU ROADWAYS TRANSPORT CORPORATION V. [Link] & ORS [SC]

n INDUSTRIAL PROMOTION & INVESTMENT CORPORATION OF ORISSA LTD V. NEW INDIA ASSURANCE CO. LTD & ANR [SC]

n ELECTROTHEM (INDIA) LTD V. PATEL VIPULKUMAR RAMJIBHAI & ORS [SC]

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 LEGAL WORLD
Decision: Appeal allowed.

Reason:
Corporate
As to what are courts and tribunals, the leading decision is M/s.
Harinagar Sugar Mills Ltd. v. Shyam Sundar Jhunjhuwala & Ors,
(1962) 2 S.C.R. 339, delivered by a Constitution Bench of this Court.

Laws In Kihoto Hollohan v. Zachillhu & ors. (1992) Suppl 2 S.C.C. 651, the
observations in the case of Harinagar Sugar Mills case (supra) were
quoted with approval and it was said that where there was a lis - an
affirmation by one party and denial by another, the dispute involved
the rights and obligations of the parties to it and the authority was
Landmark judgement called upon to decide it, there was an exercise of judicial power.
That authority was called a tribunal if it did not have all the trappings
of a court.
CS : LMJ: 11/09/2016 In the case of Harinagar Sugar Mills case (supra) this court was called
upon to decide whether an order of the Central Government under
CANARA BANK v. NUCLEAR POWER CORPORATION OF INDIA Section 111 of the Companies Act, as it then read, was appealable
under Article 136 of the Constitution. Article 136 empowers this
& ORS [SC]
court to grant special leave to appeal from any judgment, decree
determination, sentence or order in any cause or matter passed or
Civil Appeal No.3206 of 1995 made by “any court or tribunal” in the territory of India. The connotation
of the words “court” and “tribunal” was determined in the judgment
[Link], [Link] & [Link], JJ.[Decided on in the context of Article 136. The argument was that the Central
06/03/1995] Government, acting under Section 111 of the Companies Act, as it
then read, was exercising administrative authority. The court held
Equivalent Citations: 1995 SCC. Supl (3) 81; JT 1995 (3) 42; (1995) 84 Comp that it was exercising judicial authority.
CAS 70;1995 SCALE (2)162. The majority judgment relied upon the provisions of Section III for
so holding. Hidayatullah, J., concurring held that “all tribunals were
Companies Act, 1956- Section 10E- jurisdiction of CLB- share market scam- not courts though all courts were tribunals. The word “courts” was
transfer of shares by notified person- jurisdiction of special court- whether CLB used to designate the tribunals that a State established to administer
has jurisdiction- Held, No. justice. They were fixed and permanent and could try any suit or cause
within their jurisdiction. They went under the compendious name of
Brief facts: “Courts” of Civil Judicature”.
Canara Bank (the appellant) had made an application before the CLB A large number of administrative tribunals had come into existence
seeking relief against the Nuclear Power Corporation of India Ltd. with the growth of civilisation and the problems of modem life. They
(the first respondent), which had refused to register in its books in the acted in a judicial manner but they were not part of the ordinary
name of the Canara Bank bonds of the Nuclear Power Corporation courts of civil judicature. What distinguished them had never been
purchased by the Canara Bank. The Standard Chartered Bank (the successfully established. When the Constitution spoke of “courts” in
fourth respondent) had also claimed ownership of the said bonds. Article 136 and other Articles, it contemplated courts of civil judicature
The Canara Bank alleged that it had acquired the said bonds from the but not tribunals other than such courts. This was the reason both
Andhra Bank Financial Services Ltd. (the third respondent) through expressions were used in Articles 136 and 226. The judgment is,
one Hiten P. Dalal, (the second respondent) who had acted as a therefore, determinative in deciding whether a tribunal is subject to
broker. Hiten P. Dalal is a person notified under the provisions of the jurisdiction of this court under Article 136 or of the High Court
Section 3(2) of the Special Court Act and was, as the application of under Article 227, but it does not hold that a “Court” is only a court
the Canara Bank before the CLB showed, involved as a broker in the of civil judicature in the ordinary hierarchy of courts.
transaction relating to the said bonds. The application of the Canara In our view, the word “court” must be-read in the context in which
Bank was pending disposal before the CLB when, on 25th January, it is used in a statute. It is permissible, given the context, to read it
1994, the Special Court Act was amended by the Special Court as comprehending the courts of civil judicature and courts or some
(Trial of Offences Relating to Transactions in Securities) Amendment tribunals exercising curial, or judicial, powers. In the context in which
Ordinance, 1994, and Section 9-A was introduced. the word “court” is used in Section 9A of the Special Court Act, it
Canara Bank and the Nuclear Power Corporation took the stand that is intended to encompass all curial or judicial bodies which have
the application of the Canara Bank stood transferred to the Special the jurisdiction to decide matters or claims, inter alia, arising out of
Court by virtue of the provisions of Section 9-A (2)of the Special Court transactions in securities entered into between the stated dates in
Act. The Standard Chartered Bank (Stanchart) contended that the which a person notified is involved.
CLB retained the jurisdiction to deal with the application. The CLB The occasion for enacting the Special Court Act must not be lost
held that it was not a court within the meaning of the Companies Act sight of. The Statement of Objects and Reasons of the Bill to replace
nor was it a civil court. Its jurisdiction was, therefore, unaffected by the Amendment Ordinance has already been quoted. Having regard
the provisions of Section 9-A (2) of the Special Court Act. to the enormity of the “scam” and its vast ramifications, Parliament

I
CHARTERED SECRETARY SEPTEMBER 2016 113
LEGAL WORLD

thought it was necessary that all the matters of claims arising or other legal proceeding (other than an appeal) does not exclude
out of transactions in securities entered into between the stated the “application’ or “appeal” made under the provisions of Section
dates in which a person notified was involved should be brought 111of the Companies Act from the purview of Section 9A(1) of the
before and tried by the same forum. That forum had been invested Special Court Act.
with the jurisdiction to try persons accused of offences relating to The appeal is allowed. The judgment and order of the CLB under
transactions in securities entered into between the stated dates. It appeal is set aside. The application of the Canara Bank pending
was also required to give directions to the Custodian in regard to before the CLB shall stand transferred to the Special Court constituted
property belonging to persons notified which stood attached under under the provisions of the Special Court (Trial of Offences Relating
the provisions of the Special Court Act. The object of amending to Transactions in Securities) Act, 1992.
the Special Court Act invest the Special Court with the power and
authority to decide civil claims arising out of transactions in securities
entered into between the stated dates in which a person notified was
involved has already been stated. In these circumstances, it is proper
to attribute to the word “court” in Section 9A (1) of the Special Court

GENERAL
Act, not the narrower meaning of a court of civil judicature which is
part of the ordinary hierarchy of courts, but the broader meaning of
a curial body, a body acting judicially to deal with matters and claims

Laws
arising out of transactions in securities entered into between the stated
dates in which a person notified is involved.
Now, under Section 111 of the Companies Act as amended with
effect from 31st May, 1991, the CLB performs the functions that were
therefore performed by courts of civil judicature under Section 155. It
is empowered to make orders directing rectification of the company LW: [Link]
register, as to damages, costs and incidental and consequential
orders. It may decide any question relating to the title of any person WEXFORD FINANCIAL INC PANAMA v. BHEL[SC]
who is a party before it to have his name entered upon the company’s
register; and any question which it is necessary or expedient to Arbitration Petition (Civil) No.19 of 2015
decide. It may make interim orders. Failure to comply with any order
visits the company with a fine. In regard to all these matters it has T.S. Thakur, R. Banumathi & Uday Umesh Lalit [Decided on
exclusive jurisdiction (except under the provisions of the Special 13/07/2016]
Court Act, which is the issue before us). In exercising its function
under Section 111 the CLR must, and does, act judicially. Its orders Arbitration and Conciliation Act, 1956 – section 11- disputes over the payment of
are appealable. The CLR, further, is a permanent body constituted agency commission- Supreme Court appoints arbitrator.
under a statute. It is difficult to see how it can be said to be anything
other than a court, particularly for the purposes of Section 9A of the Brief facts:
Special Act. The petitioner-company is engaged in providing liaison services to
We shall assume that a shareholder whose name the company companies in public as well as in private sector within and outside the
has refused to enter in its register would be put to some difficulty in country including procurement of contracts from Government agencies
deciding whether he should approach the Special Court or the CLB, for its clients and providing facilitation of pre and post contractual
but that is no reason to interpret the provisions of Section 9A in a obligations and activities agreed upon by the parties. The company
manner that would defeat its intendment and adversely affect the claims a small percentage of the value of the contract towards its fee
public interest. In any event, the time taken in approaching the CLB for the Agency services rendered to its clients. The petitioner had
in a matter that should have been filed before the Special Court would entered into two contracts with the Respondent BHEL with respect to
not be of any consequence for there is no time limit within which the two overseas projects. The petitioner was to receive 1.1% of the value
Special Court has to be approached; and it is most unlikely that the of these projects as its service fee.
Special Court would be approached unless the shareholder were The Respondent defaulted and failed to pay the agency fee and
sure that his claim fell within Section 9A (1). certain disputes arose between them due to which the petitioner has,
As has been pointed out, sub-sections(2) and (3) of Section 111 approached the Supreme Court for appointment of an arbitrator and
of the Companies Act term the pleading that the person aggrieved for reference of the disputes for adjudication to him.
has to file before the CLE an ‘appeal’, sub-section (4) requires The respondent-company opposed the grant of any relief to the petitioner
the person aggrieved to apply, sub- section (5) speaks of it as an inter alia on the ground that the notice for arbitration served upon the
‘appeal’ or an ‘application’, subsection (7) as an ‘application ‘ and respondent is not a proper one and that the claim made by the petitioner
sub-section (10) as an ‘appeal or application’ which shall be made is barred by limitation. The respondent’s further case is that the main
by a “petition in writing”. The words “appeal” and “application” in the service which the petitioner was obliged to provide under the Service
context of the provisions of Section 111 have, therefore the same Provider Agreement was to ensure that there was an amicable settlement
meaning and it is, plainly, an original application that is made. The of the disputes between the respondent and the client and that the bank
shareholder does not resort to a superior court to review the decision guarantee provided by the respondent for US $ 15.7 million to MGIC was
of an inferior court or tribunal. The fact, therefore, that Section 9A(2) returned to it. The petitioner having failed to fulfil that obligation under the
of the Special Court Act speaks of the transfer of ‘every suit’, claim agreement was not entitled to claim any amount from the respondent.

114 I
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 LEGAL WORLD
Decision: Petition allowed. dated 18.03.2015 passed by this Court in Civil Appeal No. 6950 of
2009 and connected appeals, whereby it was held that the Award
Reason: passed by Central Government Industrial Tribunal, New Delhi (CGIT)
The material facts are not in dispute. That a Service Provider in I.D. No. 27 of 1991 is legal and valid and the same be restored and
Agreement was executed between the parties is admitted. That implemented by the Life Insurance Corporation of India (hereinafter
Article 7 of the said agreement provides for settlement of the dispute referred to as the “LIC”) by absorbing the concerned workmen in the
in relation to the agreement by way of arbitration is also not in permanent posts. It was further held that the Corporation would be
dispute. That disputes have actually arisen between the parties in liable to pay all consequential benefits including monetary benefits
relation to the agreement is also evident from the averments made taking into consideration the revised pay scale in the cases of those
in the pleadings. The only method for determination of such disputes workmen who had attained the age of superannuation.
is by way of arbitration. Whether or not the petitioner has provided
the services envisaged under the agreement and, if so, whether the Decision: Impugned judgement modified.
said services were adequate and satisfactory are matters that can
be examined only by the Arbitrator. So also the question whether the Reason:
claim made by the petitioner is time barred cannot be examined in the The learned Attorney General further submits that as on 31.03.2015,
present proceedings and shall have to be left open to be raised before LIC had 55,427 Class III employees and 5,190 Class IV employees.
the Arbitrator. There is, in that view, no gain saying that the present If LIC is directed to consider the absorption of the workmen to the
petition Under Sections 11(5) and 11(12) shall have to be allowed advertisement, then the number of Class III employees will increase by
with appropriate directions, particularly when this Court is concerned 11.14% and Class IV employees by 56.65% and the same will affect
primarily with the question whether an arbitration agreement exists the employee’s ratio in addition to the increase in its financial burden
between the parties and if so whether the disputes falling within the and that the same will be contrary to the interests of the policyholders.
scope of the agreement have arisen for determination. Our answer to The learned Attorney General estimates the financial liability for
both these questions being in the affirmative, the petitioner has made implementing the order of this Court at approximately Rs.7087 crores,
out a case for appointment of an Arbitrator and for reference of the with the annual liability at around Rs.728 crores per year and that this
disputes for adjudication to him/her. will be a huge financial burden for LIC to bear.
In the result, we allow this petition, and appoint Ms. Justice On the other hand, the learned counsel appearing on behalf of the
Rekha Sharma, former Judge of the High Court of Delhi as a Sole respondents-workers submit that it becomes clear from a perusal of
Arbitrator for adjudication of the disputes that have arisen between the Review Petitions filed by LIC that it is trying to re-agitate the case
the parties in relation to the Service Provider Agreement executed on merits.
between them. For the limited purpose of modifying the relief granted in the Civil Appeal
only with regard to the Back wages, we directed Mr. Ashok Panigrahi,
the learned counsel appearing on behalf of the review petitioner-LIC
to submit a document containing the pay scales indicating the basic
pay and other emoluments payable to the concerned workmen. The
same were furnished with the periodic revisions in the years 1992,

INDUSTRIAL &
1997, 2002, 2007 and 2012, without furnishing the other component
figures which would be the gross salary of the different classes of
workmen in the present dispute. These periodic revisions of pay of

LABOUR LAWS basic salary, along with other component figures comprising the gross
salary including Dearness Allowance, House Rent Allowance etc. etc.,
as applicable, must be accounted for while computing the amount due
to the workmen towards the back wages.

LW: [Link] The temporary and badli workers of LIC, who are entitled for
regularisation as permanent workmen in terms of the impugned
judgment and order dated 18.03.2015 passed by this Court, by applying
TAMILNADU TERMINATED FULL TIME TEMPORARY LIC the terms and conditions of the modified award dated 26.08.1988
EMPLOYEES ASSOCIATION v. S.K. ROY, THE passed by Justice Jamdar, are held to be entitled to full back wages
CHAIRMAN, LIC[SC] as well. However, keeping in mind the immense financial burden this
would cause to LIC, we deem it fit to modify the relief only with regard
Contempt Petition (C) No. 459 of 2015 in Civil Appeal No. 6950 of 2009 along to the back wages payable and therefore, we award 50% of the back
with batch of review petitions. wages with consequential benefits. The back wages must be calculated
on the basis of the gross salary of the workmen, applicable as on
V. Gopala Gowda & C. Nagappan, JJ. [Decided on 09/08/2016] the date as per the periodical revisions of pay scale as stated supra.
The computation must be made from the date of entitlement of the
LIC directed to pay backwages and compensation to all badly workmen whose workmen involved in these cases, that is, their absorption, till the age
services were terminated in 1988. of superannuation, if any concerned workman has attained the age of
superannuation as per the regulations of the review petitioner-LIC, as
Brief facts: applicable to the concerned workman.
These Review Petitions arise from the impugned judgment and order With the above modifications to the judgment and order sought to

I
CHARTERED SECRETARY SEPTEMBER 2016 115
LEGAL WORLD

be reviewed, these review petitions are disposed of in the terms as in slightly different factual matrix is substantially relevant and
indicated above. Since the judgment and order is passed in favour of helpful. In D.R. Gurushantappa v. Abdul Khuddus Anwar & Ors
workmen and their dispute is being litigated for nearly twenty five years, (1996) 3 SCC 325, an issue arose in the context of election of the
the directions contained in the judgment and order dated 18.03.2015 Mysore Legislative Assembly as to whether the respondent was
with the above modifications shall be complied with by the review holding office of profit under the Government. The respondent no.
petitioner-LIC within eight weeks of the receipt of the copy of this order. 1 of that case was initially a Government servant but subsequently
the Government concern where he was working was taken over
LW: [Link] by a company registered under the Indian Companies Act, 1956.
The shares of the company were fully owned by the Government
but after the Government undertaking was taken over by the
PEPSU ROADWAYS TRANSPORT CORPORATION v. company, the employees were no longer governed by the Mysore
[Link] & ORS [SC] Civil Services Regulations, their conditions of service came to
be determined by the standing orders of the company. The first
Civil Appeal No. 4703 of 2009 contention against respondent no. 1 was that since he was initially
a Government servant, even after the concern was taken over
Shiva Kirti Singh & R. Banumathi, JJ.[Decided on 08/08/2016] by the company he would continue to be in the service of the
Government. While dealing with this issue in paragraph 3, this
Transfer of employees from PEPSU roadways PEPSU corporation- workmen Court rejected the contention in the following words:
retired after taking all retiral benefits in 1991- pension scheme revised in 1992- “3. So far as the first point is concerned, reliance is placed
retired workmen claimed benefits under the pension scheme also- whether primarily on the circumstance that, when the concern was taken
tenable-Held, No. over by the Company from the Government there were no specific
agreements terminating the Government service of Respondent
Brief facts: 1, or bringing into existence a relationship of master and servant
The respondents who were the employees of PEPSU Roadways between the Company and Respondent 1. That circumstance, by
were transferred to PEPSU Road Transport Corporation itself, cannot lead to the conclusion that Respondent 1 continued
(hereinafter referred to as the ‘Corporation’), due to the take-over to be in government service. When the undertaking was taken
of PEPSU Roadways by the corporation, on the prevailing terms over by the Company as a going concern, the employees working
and conditions till the approval of new terms and conditions by the in the undertaking were also taken over and since, in law, the
[Link] respondents got promotions etc. and continued to Company has to be treated as an entity distinct and separate from
serve the Corporation till they all retired between 1989 and 1991. the Government, the employees, as a result of the transfer of the
Much after the retirement of the respondents, the Corporation undertaking, became employees of the Company and ceased to
framed PRTC Employees Pension/Gratuity and General Provident be employees of the Government.”
Fund Regulations, 1992 (hereinafter described as ‘Regulations In the facts of the case, we have no hesitation to hold that the
of 1992’). Under these Regulations, for the first time pension High Court erred in allowing the writ petition and second appeal
was introduced in the Corporation. Soon after the enforcement of the respondents and in dismissing the Letters Patent Appeal
of Regulations of 1992 the respondents who had already of the appellants. The judgments on which the respondents have
received their retiral benefits, filed a writ petition claiming that relied upon for advancing the submission that they cannot lose
they continued to be employees of the State in the department the status of a Government servant till they are absorbed in the
of PEPSU Roadways till PEPSU State was reorganized and from Corporation after offering an option in favour of such absorption is
01.11.1956, the date of reorganization they became employees of entirely misconceived and inapplicable in the facts of the present
State of Punjab with right to pension as available to Government case. The stand of the respondents could have been acceptable
servants. had there been no decision of the PEPSU State as evidenced by
The Single Judge allowed the writ petition on the premise that the letter of Chief Secretary dated 16.10.1956 which finds mention
the respondents had simply been transferred from the parent and reiteration by way of admission by the Corporation in order
department to serve in the Corporation and therefore they dated 30.11.1956. There can be no such belated challenge to
continued to be Government servants because there was no order the decision of PEPSU State whereby PEPSU Roadways, one
passed for their absorption in the Corporation. of the departments came into and merged with the Corporation
The Letters Patent Appeal preferred by the appellants was lock, stock and barrel before the merger of PEPSU with Punjab on
dismissed by the judgment and order dated 24.04.2006 which is 01.11.1956. Hence, the provisions of the States Reorganization
under challenge in this appeal. Act ceased to have any significance in the matter because the
respondents ceased to be employees of State Government of
Decision: Appeal allowed. PEPSU prior to 01.11.1956. They accepted such merger and
alteration of their service conditions without any protest. Since
Reason: 1957, under the Regulations of the Corporation they participated
The main controversy in this case is whether the claim of the and contributed to the scheme of CPF and obtained the benefits
respondents, a group of twenty one employees of PEPSU of retirement from the Corporation between 1985 and 1991 without
Roadways that in spite of transfer of that department to the any protest. The High Court clearly erred in ignoring such conduct
Corporation they continue to be actually Government servants and of the respondents, the effect of the Chief Secretary’s letter dated
therefore entitled to retiral benefits instead of CPF is acceptable or 16.10.1956 containing decision of PEPSU State and its acceptance
not. In this controversy, a judgment of this Court though rendered

116 I
SEPTEMBER 2016 CHARTERED SECRETARY
 LEGAL WORLD
by the Corporation reflected by the order dated 30.11.1956. The Miscellaneous Accident Policy, Rs. 60,40,000/- under the Fire Policy
High Court further erred in relying upon law which is applicable and Rs. 46,00,000/- under the Burglary and House Breaking Policy.
when there is no merger of Government concern with the The seized assets were put to auction by the Appellant, at which
private concern but only individual employees are transferred on point of time it was detected that some parts of the plant and
deputation or on Foreign Service to other organizations/services. machinery were missing from the factory premises. A claim was
The ordinary rules providing for asking of option or issuance of lodged with Respondent No. 1 for an amount of Rs. 34,40,650/-
letters of absorption depend upon nature of stipulations which under the Burglary and House Breaking Policy. The claim of the
may get attracted to a case of deputation. There may be similar Appellant was repudiated by Respondent No. 1 on the ground that
stipulations in case of merger by transfer. But if there are no such the alleged loss did not come within the purview of the insurance
stipulations like in the present case then the transferee concern policy.
like the Corporation has no obligation to ask for options and to The Appellant filed compensation application No. 45 of 2001
issue letters of options to individual employees who become under Section 12-B read with Section 36-A of the Monopolies and
employees of the transferee organization simply by virtue of order Restrictive Trade Practices (MRTP) Act, 1969, which was rejected
and action of transfer of the whole concern leading to merger. by the MRTP Commission, New Delhi by its Order dated 17-08-
No doubt in case of any hardship, the affected employees have 2005. Aggrieved by the said Order, the Appellant has preferred
the option to protest and challenge either the merger itself or any the present Appeal.
adverse stipulation. However, if the employees choose to accept
the transition of their service from one concern to another and Decision:Appeal dismissed.
acquiesce then after decades and especially after their retirement
they cannot be permitted to turn back and challenge the entire Reason:
developments after a gap of decades. Having considered the submissions made on both sides, we
On the basis of laws and facts discussed above, we are are of the opinion that there is no error committed by the MRTP
constrained to hold that the respondents had accepted to continue Commission in rejecting the Claim of the Appellant. It is clear from
as employees of Corporation pursuant to order of merger/ the facts of the present case that the Appellant has made out a
transfer of PEPSU Roadways with effect from 16.10.1956 and on case of theft without a forcible entry. The case of the Appellant
completing their service under the Corporation and reaching the is that forcible entry is not required for a claim to be made under
age of retirement they were entitled to receive only the benefits the policy. Following the well- accepted principle that a contract
of CPF and gratuity as admissible to them under then prevailing of insurance which is like any other commercial contract should
regulations of the Corporation. Since they accepted those retiral be interpreted strictly, we are of the opinion that the policy covers
benefits there is no relationship left between the Corporation and loss or damage by burglary or house breaking which have been
the respondents and in such a situation further claim against the explained as theft following an actual, forcible and violent entry
Corporation that it should treat the respondents to be Government from the premises. A plain reading of the policy would show that a
servants and adjust their retiral benefits accordingly was totally forcible entry should precede the theft, and unless they are proved,
untenable and wrongly allowed by the High Court. The impugned the claim cannot be accepted.
judgment of the High Court granting relief to the respondents is It is well-settled law that there is no difference between a contract
therefore set aside. The second appeal and the writ petition of of insurance and any other contract, and that it should be construed
the respondents shall stand dismissed. This appeal is accordingly strictly without adding or deleting anything from the terms thereof.
allowed but the parties are left to bear their own costs. On applying the said principle, we have no doubt that a forcible
entry is required for a claim to be allowed under the policy for
LW: [Link] burglary/house breaking.
This court in General Assurance Society Ltd. v. Chandmull Jain and
Anr., reported in [1966] 3 SCR 500 held that there is no difference
INDUSTRIAL PROMOTION & INVESTMENT CORPORATION between a contract of insurance and any other contract except that
OF ORISSA LTD V. NEW INDIA ASSURANCE CO. LTD & ANR in a contract of insurance there is a requirement of uberima fides,
i.e., good faith on the part of the insured and the contract is likely to
[SC] be construed contra proferentes, i.e., against the company in case
of ambiguity or doubt. It was further held in the said judgment that
Civil Appeal No. 1130 of 2007 the duty of the Court is to interpret the words in which the contract
is expressed by the parties and it is not for the Court to make a
Anil R. Dave & L. Nageswara Rao, JJ. [Decided on 22/08/2016] new contract, however reasonable.
For the aforementioned reasons, we uphold the order of the MRTP
Insurance law- claim against theft and burglary- no forcible house braking- Commission and dismiss the Appeal with no order as to costs.
whether compensation is payable- Held, No.

Brief facts: LW: [Link]

The Appellant exercising its power under Section 29 of the State
Finance Corporation Act, 1951, took over the assets of M/s. Josna ELECTROTHEM (INDIA) LTD v. PATEL VIPULKUMAR
Casting Centre Orissa Private Limited, which had been insured RAMJIBHAI & ORS [SC]
with Respondent No. 1 for a sum of Rs. 46,00,000/- under the Civil Appeal No. 7222 of 2016 (Arising out of SLP (C) No.16860 of 2012)

I
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LEGAL WORLD

drawl and certain other features. However the water requirement,

T.S. Thakur, R. Banumathi & Uday Umesh Lalit, JJ. [Decided on which is a community resource, was definitely going to be of
02/08/2016] greater order in addition to the fact that the expansion of the
project would have entailed additional pollution load.
Environment laws- projects- environment clearance- clearance certificate issued It must be stated here that after EIA Notification of 2006 a draft
without holding public hearing-whether tenable- SC directs of post-clearance Notification was issued on 09.01.2009 wherein an amendment
public hearing. was suggested in paragraph 7(ii) of EIA Notification dated
14.09.2006 to the effect that in cases of expansion of projects
Brief facts: involving enhancement by more than 50% holding of public
This appeal challenges the judgment and order dated 11.05.2012 consultation/public hearing was essential; implying thereby
passed by the High Court of Gujarat allowing Special Civil that in cases where expansion was less than 50% public
Application No.5986/2010 setting aside the Environmental consultation/public hearing could be exempted. Without going
Clearance dated 27.01.2010 and directing that the operations of into the question whether public consultation/public hearing could
the entire plant of the Appellant be stopped and that the operations be so exempted, it is relevant to note that this idea in the draft
could be continued only after fresh Environmental Clearance was Notification was not accepted, after a Committee constituted to
accorded in its favour by the Ministry of Environment and Forests advice in the matter had given its report on 30.10.2009 to the
and Union of India. contrary. As a result, the final Notification dated 01.12.2009 did
Environment clearance was accorded to the petitioner without not carry or contain the amendment that was suggested by way
conducting public hearing. The High Court, on a PIL, restrained the of draft Notification. Consequently, no exemption on that count
petitioner from operating the plant and also ordered to close it down. could be given when the Environmental Clearance came to be
On appeal to the Supreme Court, the only question for the issued on 27.01.2010.
consideration of the court was whether the Environmental In the case of Lafarge Umiam Mining Private Limited - T.N.
Clearance dated 27.1.2010 can be termed as illegal in the absence Godavarman Thirumulpad Vs. Union of India and Others 2011
of public consultation or public hearing as mandatorily provided by (7) SCC 338, public consultation/public hearing was considered
Notifications dated 2006. and found to be mandatory requirement of the Environmental
Clearance process by this Court.
Decision: Petition partly allowed. In terms of the principles as laid down by this Court in the case
of Lafarge (supra), we find that the decision making process
Reason: in doing away with or in granting exemption from public
In the affidavit filed on behalf of CPCB it was stated inter alia that consultation/public hearing, was not based on correct principles
pursuant to the order dated 22.04.2014 passed by this Court, a and as such the decision was invalid and improper.
joint inspection was carried out as directed and that the industry At the same time, we cannot lose sight of the fact that in
of the Appellant had complied with most of the recommendations, pursuance of Environmental Clearance dated 27.01.2010,
though there were still certain shortcomings. the expansion of the project has been undertaken and as
reported by CPCB in its affidavit filed on 07.07.2014, most of
The facts on record are clear that while granting Environmental the recommendations made by CPCB are complied with. In our
Clearance on 20.02.2008, public consultation/public hearing considered view, the interest of justice would be sub-served if
was undertaken on 12.06.2007. As on that date the status of the that part of the decision exempting public consultation/public
project was that the capacity of Pig Iron Plant was to be 350 TPD, hearing is set aside and the matter is relegated back to the
Power Plant to be 24 MW, the total cost of the project was 90.00 concerned Authorities to effectuate public consultation/public
crores and the total Water requirement was 650 MT/Day. The hearing. However, since the expansion has been undertaken and
High Court was absolutely right that after expansion the capacity the industry has been functioning, we do not deem it appropriate
of the plant was to increase three-fold. The tabular chart given to order closure of the entire plant as directed by the High Court.
in Environmental Clearance dated 27.01.2010 itself shows the If the public consultation/public hearing results in a negative
tremendous increase in the capacity. Consequently, the pollution mandate against the expansion of the project, the Authorities
load would naturally be of greater order than the one which was would do well to direct and ensure scaling down of the activities
contemplated when the earlier public consultation/public hearing to the level that was permitted by Environmental Clearance dated
was undertaken on 12.08.2007. Further, the water requirement 20.02.2008. If public consultation/public hearing reflects in favour
had also risen from 650 MT/Day to 2165 MT/Day. The increase of the expansion of the project, Environmental Clearance dated
in pollution load and water requirement were certainly matters 27.01.2010 would hold good and be fully operative. In other
where public in general and those living in the vicinity in particular words, at this length of time when the expansion has already
had and continue to have a stake. been undertaken, in the peculiar facts of this case and in order
Public consultation/public hearing is one of the important to meet ends of justice, we deem it appropriate to change the
stages while considering the matter for grant of Environmental nature of requirement of public consultation/public hearing from
Clearance. The minutes of the meetings held on 9-11 February pre- decisional to post-decisional. The public consultation/public
2009 show that the request of the Appellant for exemption hearing shall be organized by the concerned authorities in three
from the requirement of public hearing was accepted by the months from today.
Committee. The observations of the Committee suggest that This appeal therefore stands disposed of with the aforesaid
there would be no additional land requirement, ground water modifications. No order as to costs.

118 I
SEPTEMBER 2016 CHARTERED SECRETARY
 Government
From the
4
n SPECIAL COURTS FOR SPEEDY TRIAL OF OFFENCES UNDER THE COMPANIES ACT, 2013
n COMPANIES (SHARE CAPITAL AND DEBENTURES) RULES, 2014
n SPOT PRICE POLLING MECHANISM
n ADDITIONAL RISK MANAGEMENT NORMS FOR NATIONAL COMMODITY DERIVATIVES EXCHANGES
n TRADING HOURS/TRADING HOLIDAYS ON COMMODITY DERIVATIVES EXCHANGES
n PRICE DISSEMINATION THROUGH SMS/ELECTRONIC COMMUNICATION FACILITY
n MAINTENANCE AND PRESERVATION OF RECORDS
n MODIFICATION OF CLIENT CODES POST EXECUTION OF TRADES ON NATIONAL AND REGIONAL COMMODITY DERIVATIVES
EXCHANGES– CLARIFICATION
n PROGRAMMES SPONSORED BY THE EXCHANGES THROUGH MEDIA CHANNELS
n ANNUAL SYSTEM AUDIT OF STOCK BROKERS / TRADING MEMBERS OF NATIONAL COMMODITY DERIVATIVES EXCHANGES

I
CHARTERED SECRETARY SEPTEMBER 2016 119
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 FROM THE GOVERNMENT
and Debentures) Rules, 2014, namely:—
1. (1) These rules may be called the Companies (Share Capital
and Debentures) Fourth Amendment Rules, 2016.
(2) They shall come into force on the date of their publication in

Corporate
the Official Gazette.
2. In the Companies (Share Capital and Debentures) Rules, 2014, in rule
18, after Sub-rule (10), the following sub-rule

Laws
shall be inserted, namely:-
“(11) Nothing contained in this rule shall apply to rupee denominated bonds
issued exclusively to overseas investors in terms of A.P. (DIR Series)
Circular No. 17 dated September 29, 2015 of the Reserve Bank of India.”.
AMARDEEP SINGH BHATIA

01
Special Courts for speedy trial of offences Joint. Secretary

03
under the Companies Act, 2013 Spot Price Polling Mechanism

[Issued by the Ministry of Corporate Affairs vide Folio No:

01/12/2009:CL-l ([Link])], dated 01.09.2016.]
[Issued by the Securities and Exchange board of India vide Circular No:
In exercise of the powers conferred by sub-section (1) of section 435 of the SEBI/HO/CDMRD/DMP/CIR/P/2016/78, dated 02.09.2016.]
Companies Act, 2013 (18 of 2013), the Central Government hereby, with
the concurrence of the Chief Justice of the High Courts of Chhattisgarh, 1. As per Section 131(4) of Finance Act, 2015 all rules, directions,
Rajasthan, Punjab and Haryana, Madras and Manipur, designates the guidelines, instructions, circulars, or any like instruments, made by the
following Courts as Special Courts for the purposes of providing speedy trial erstwhile FMC or the Central Government applicable to recognized
of offences punishable with imprisonment of two years or more under the associations under the FCRA would continue to remain in force for
Companies Act, 2013, namely:- a period of one year from the date on which FCRA was repealed
(September 29, 2015), or till such time as notified by SEBI, whichever
Sl. No. Existing Court Jurisdiction as Special
(1) (2) Court (3) is earlier.
1. Sessions Judge, Bilaspur State of Chhattisgarh 2. Erstwhile FMC, from time to time, had prescribed various norms related
2 Court of Special Judge, (Sati Niwaran), Jaipur State of Rajasthan, to “Spot Price Polling Mechanism”. This circular is being issued to
3 Court of Sessions Judge and 2nd Additional State of Punjab consolidate and update such norms prescribed by erstwhile FMC.
Sessions Judge, S.A.S. Nagar 3. The Commodity Derivatives Exchanges have been using a ‘Spot Price
4 Court of Sessions Judge and 2nd Additional State of Haryana Polling Mechanism’ to arrive at the prevailing spot prices. Transparent
Sessions Judge, Gurgaon
discovery of spot prices is a critical factor in smooth running of futures
5 Court of Sessions Judge and 2nd Additional Union Territory of
Sessions Judge, Chandigarh Chandigarh market as the same are used as reference prices for settlement of
6 I Additional District and Sessions Court, Districts of, contracts traded on the exchange platform. To arrive at the prevailing
Coimbatore Coimbatore spot prices, the exchanges are polling the spot prices from various
Dharmapuri, Dindigul, spot price polling participants. Some exchanges undertake this activity
Erode, krishnagiri, themselves whereas some have outsourced this work to an external
namkaal, Nilgiris,
Salem and Tiruppur. agency.
7 II Additional District and Sessions Court, Union Territory of 4. In order to maintain the transparency of spot price polling process
Puducherry Puducherry and dissemination of spot prices arrived at through spot price polling
8 Sessions Judge, Imphal East State of Manipur process, the commodity derivatives exchanges are directed to:
2. The aforesaid Courts mentioned in column number (2) shall exercise 4.1. have a well laid down and documented policy for the spot price
the jurisdiction as Special Courts in respect of jurisdiction mentioned in polling mechanism.
column number (3). 4.2. display the spot price polling mechanism adopted for every
AMARDEEP SINGH BHATIA contract on its website along with following details:
Joint. Secretary S. No. Particulars Details

02
1. Details of the contract
Companies (Share Capital and Debentures) 2. Mechanism of spot price polling

Rules, 2014 3. How spot prices are arrived at

4. Whether these prices include or exclude taxes and other
levies / costs
5. Whether spot prices polling has been outsourced to any
[Issued by the Ministry of Corporate Affairs vide Circular No: G.S.R. 791(E) external agency and if so, the details thereof.
F. No. 01/04/2013-CL-V- Part-II, dated 12.08.2016.] 6. Criteria for selection of these polling participants
7. Any other information that the Exchange may consider
In exercise of the powers conferred by sub-sections (1) and (2) of section 469
of the Companies Act, 2013 (18 of 2013), the Central Government hereby 4.3. disclose, for every contract, following details with respect to
makes the following rules further to amend the Companies (Share Capital individual spot price polling participants on its website:

I
CHARTERED SECRETARY SEPTEMBER 2016 121
FROM THE GOVERNMENT
Participants Location Profession Price quoted Time, Date the extent specified hereunder) certain existing norms on risk
A1 management at National Commodity Derivatives Exchanges.
The additional/modified norms are placed at Annexure-I.
A2
3. The norms prescribed in this circular shall be implemented by national
4.3.1. The Exchanges may assign a code such A1, A2, A3… commodity derivatives exchanges latest by December 1, 2016, except
etc. for poling participants of a particular contract and reveal his for the norm prescribed for base minimum capital at paragraph 7 of
location and price (s) for the day. Annexure-I, which shall be complied with latest by April 01, 2017.
4.3.2. This information shall be updated on Exchange website 4. It is emphasized that risk management is primarily the responsibility of
every day for every contract traded on the exchange exchanges. In cases of excessive market volatility or circumstances
platform. where risk element is higher, exchanges are expected to impose
4.3.3. The information shall continue to be displayed even after higher margins and/or additional margins in the form of special/ ad-
the expiry of the contract for a period of 3 years. hoc or other margins as considered appropriate by the exchanges.
4.4. endeavour in increasing the sample size used for fixing the daily 5. The exchanges are also advised to:
spot prices during the last 15 days of the contract . i. ensure that their risk management framework is in line with the
4.5. review on a monthly basis the prices polled by the participants provisions contained in the annexure and take steps to make
to identify participants habitually polling unrealistic prices. These necessary amendments to the relevant bye-laws, rules and
participants could be put under watch and subsequently removed regulations for the implementation of the same.
from the panel if such instances reoccur despite appropriate ii. bring the provisions of this circular to the notice of their members
communications. and also to disseminate the same on their website.
4.6. provide a separate feedback window for receiving complaints iii. communicate to SEBI, the status of implementation of the
in this regard. The exchanges shall address such complaints provisions of this circular.
in a time-bound manner. Further the exchanges shall keep the 6. This circular is issued in exercise of the powers conferred under
audit trail of all such complaints received and the steps taken Section 11 (1) of the Securities and Exchange Board of India Act,
for rederssal. 1992, to protect the interests of investors in securities and to promote
5. The provisions of this circular shall come into effect from September the development of, and to regulate the securities market.
29, 2016 in supersession of all earlier directives issued by erstwhile 7. This circular is available on SEBI website at [Link].
FMC with regard to matters related to ‘spot price polling’. Shashi Kumar
6. This circular is issued in exercise of the powers conferred under Section General Manager
11(1) of the Securities and Exchange Board of India Act 1992, to protect Annexure - I
the interests of investors in securities and to promote the development Additional/modified risk management norms for National
of, and to regulate the securities market. Commodity Derivatives Exchanges
7. The Exchanges are advised to: 1. Initial Margins (IM):
i. to make necessary amendments to the relevant bye-laws, rules Exchanges shall impose initial margins sufficient to cover its potential
and regulations. future exposure to participants in the interval between the last margin
ii. bring the provisions of this circular to the notice of the stock collection and the close out of positions following a participant default.
brokers of the Exchange and also to disseminate the same on Exchanges shall therefore estimate the appropriate Margin Period of
their website. Risk (MPOR) for each product based on liquidity in the product and
iii. communicate to SEBI, the status of the implementation of the scale up the initial margins, if required. However, the MPOR for all
provisions of this circular. commodity derivatives contracts shall be at least 2 days.
8. This circular is available on SEBI website at [Link] under 2. Delivery Period Margins:
the category “Circulars” and “Info for Commodity Derivatives”. Delivery period margins shall be higher of:
a. 3% + 5 day 99% VaR of spot price volatility
Vikas Sukhwal Or
b. 20%

04
Deputy General Manager

Additional risk management norms for Exchanges may impose higher margins if deemed fit. If extant
delivery period margins on certain commodities are higher
National Commodity Derivatives Exchanges than that specified above, the extant delivery period margins
shall continue.
[Issued by the Securities and Exchange board of India vide 3. Measures in case of repeated shortfall in margin/pay-in:
Circular No: SEBI/HO/CDMRD/DRMP/CIR/P/2016/77, dated 01.09.2016.] In case of repeated margin/pay-in shortfalls beyond a threshold amount
by any member in a month, following risk mitigation measures shall
1. With an objective of streamlining and strengthening the risk be initiated by commodity derivatives exchanges:
management framework across national commodity derivatives a. The member be put in square off mode and required to reduce
exchanges SEBI vide circular CIR/CDMRD/DRMP/01/2015 dated positions.
October 01, 2015, had prescribed comprehensive risk management b. The member be charged initial margins at a higher rate for the
framework for National Commodity Derivatives Exchanges. next one month,
2. In order to further strengthen the risk management framework Or
of commodity derivatives markets and avoid any systemic risk, The member be subjected to a penal exposure free deposit equal
it has been decided to prescribe additional norms/modify (to to the cumulative funds/margin shortage over previous one month

122 I
SEPTEMBER 2016 CHARTERED SECRETARY
 FROM THE GOVERNMENT
which could be kept with the exchange for the next month. 6. Capped additional contribution by non-defaulting members (equal
c. Exchange shall keep a close watch on such member. to their required contribution to SGF)
4. Concentration margins: 7. Any remaining loss to be covered by way of pro-rata haircut to payouts.
Exchanges shall impose adequate concentration margins (only on *INR 100 Crore to be excluded only when remaining exchange resources
concentrated positions) to cover the risk of longer period required for are more than INR 100 Crore.
liquidation of concentrated positions in any commodity. The threshold

05
value for imposing concentration margin may be determined taking into Trading Hours/Trading Holidays on
account factors including open interest, concentration and estimated
time to liquidation based on prevailing liquidity and possible reduction
Commodity Derivatives Exchanges
in liquidity in times of market stress etc. The quantum of concentration
margins imposed may vary based on the level of concentration.
5. Regaining matched book: [Issued by the Securities and Exchange board of India vide Circular No:
In the event of a member/client failing to honour pay-in/margin obligations, SEBI/HO/CDMRD/DMP/CIR/P/2016/75, dated 30.08.2016.]
exchanges may employ the below given alternative tools to liquidate the
positions and regain a matched book based on the conditions of market 1. As per Section 131(4) of Finance Act, 2015 all rules, directions, guidelines,
liquidity, volatility, size of position to be liquidated etc. Any tool lower in instructions, circulars, or any like instruments, made by the erstwhile
the list prescribed hereunder may be resorted to only in extremely rare FMC or the Central Government applicable to recognized associations
occasions when the exchange reasonably expects that it may not be under the FCRA would continue to remain in force for a period of
able to restore a matched book by choosing the alternatives above it one year from the date on which FCRA was repealed (September
and also records the reasons for the same in writing: 29, 2015), or till such time as notified by SEBI, whichever is earlier.
a. Alternative 1: Liquidation in normal market in orderly manner (with 2. Erstwhile FMC, from time to time, had prescribed norms
relaxed price limits, if required); related to Trading Hours/Trading Holidays. This circular
b. Alternative 2: Auction of the positions within a specified price band; is being issued to consolidate and update such norms.
c. Alternative 3: Voluntary tear-up at last mark-to-market price along Trading Hours
with compensation (%age of last mark-to-market price equal to 3. All Commodity Derivatives Exchanges shall permit trading only from
twice the daily price limit) and penalty (5%, to be credited to SGF); Monday to Friday.
d. Alternative 4: Partial tear-up (pro-rata against members/clients 4. Trading hours shall be fixed by the Exchange within the time limits as
having opposite positions) at last mark-to-market price along with mentioned in the table below:
compensation (%age of last mark-to-market price equal to thrice S. Commodity Category Trade Start Trade End time
the daily price limit) and penalty (5%, to be credited to SGF). No Time
6. Spread margin benefit: After Start of After End of
Margin benefit on spread positions shall be entirely withdrawn latest by US Day light US Day light
the start of tender period or Expiry-6th day, whichever is earlier. Savings in Savings in
Spring Season Fall Season
7. Base Minimum Capital (BMC) for clearing members:
Clearing members who clear and settle only non-algo trades for other 1 Internationally Referencable 10:00 AM 11:30 PM 11:55 PM
Non-Agri Commodities
trading members shall have BMC requirement of INR 25 lakhs. Clearing
2 Internationally Referencable 10:00 AM 09:00 PM 09:30 PM
members who clear and settle algo trades shall continue to have BMC
Agri Commodities*
requirement of INR 50 lakhs.
3 All Other Commodities 10:00 AM 05:00 PM
8. Exchange contribution to SGF:
*Presently traded internationally referencable Agri commodities are Crude Palm Oil,
Currently exchanges make risk assessment on SGF on quarterly
Cotton, Kapas Soya Oil and Sugar.
basis and are required to make fresh contribution to SGF in case of
any shortfall. This contribution requirement by exchange in any year 5. With regard to Muhurat Trading on Diwali (Lakshmi Poojan) day, all
is currently capped to 5% of the gross revenue (net of Income Tax). National Commodity Derivatives Exchanges shall jointly decide the
The said cap to the contribution requirement is hereby removed and common trade timing and notify the same to the market under prior
exchanges shall be required to meet the shortfall in full as indicated in intimation to SEBI.
quarterly assessments. 6. Exchanges shall ensure that they have necessary risk management
9. Default waterfall: system and infrastructure in place commensurate to their trading hours.
Till clearing and settlement of trades in commodity derivatives are Trading Holidays
transferred to clearing corporations, the default waterfall of exchanges 7. With regard to Trading holidays of National Commodity Derivatives
shall follow the following order: Exchanges, all such Exchanges shall jointly decide upon the common
1. Defaulting member’s monies (including contribution to SGF) holiday list within the broad framework of the Negotiable Instruments
2. Insurance, if any Act, 1881 and also taking into consideration Central/State/Local
3. Exchange resources equal to 5% of SGF holidays and notify the same to the market well in advance under prior
4. SGF resources in the following order: intimation to SEBI.
a. Penalties and investment income on SGF On such trading holidays, National Exchanges may permit trading of
b. 25% of Exchange contribution to SGF internationally referencable commodities in evening session i.e. post
c. Remaining (non-defaulting members’ and exchange) 5:00 PM, in case corresponding international markets are open.
contribution to SGF on pro-rata basis. 8. With regard to Trading Holidays of Regional Commodity Derivatives
5. Remaining exchange resources (excluding INR 100 Crore*) Exchanges, each Exchange shall decide upon the holiday list within

I
CHARTERED SECRETARY SEPTEMBER 2016 123
FROM THE GOVERNMENT

the broad framework of the Negotiable Instruments Act, 1881 and with regard to matters related to ‘Price Dissemination through SMS’.
also taking into consideration Central/State/Local holidays and notify 7. This circular is issued in exercise of the powers conferred under
its holiday list to the market well in advance under prior intimation to Section 11(1) of the Securities and Exchange Board of India
SEBI. Act 1992 to protect the interests of investors in securities and to
9. While finalizing Trading Holidays list, Exchanges shall suitably take promote the development of, and to regulate the securities market.
into account the views of market participants. Frequent changes in 8. The Exchanges are advised to:
holiday List shall be avoided i.e. once decided, same holidays should i. to make necessary amendments to the relevant bye-laws, rules
be followed every year irrespective of the holidays falling on a working and regulations.
day or a non-working day in that year. ii. bring the provisions of this circular to the notice of the stock
10. The provisions of this circular shall come into effect from September brokers of the Exchange and also to disseminate the same on
29, 2016 in supersession of all earlier directives issued by erstwhile their website.
FMC with regard to matters related to Trading Hours/Trading Holidays. iii. communicate to SEBI, the status of the implementation of the
11. This circular is issued in exercise of the powers conferred under Section provisions of this circular.
11(1) of the Securities and Exchange Board of India Act 1992 to protect 9. This circular is available on SEBI website at [Link] under
the interests of investors in securities and to promote the development the category “Circulars” and “Info for Commodity Derivatives”.
of, and to regulate the securities market. Vikas Sukhwal
12. Exchanges are advised to: Deputy General Manager

07
i. to make necessary amendments to the relevant bye-laws, rules
and regulations. Maintenance and Preservation of Records
ii. bring the provisions of this circular to the notice of the stock
brokers of the Exchange and also to disseminate the same on
their website. [Issued by the Securities and Exchange board of India vide
iii. communicate to SEBI, the status of the implementation of the Circular No: SEBI/HO/CDMRD/DMP/CIR/P/2016/74, dated 30.08.2016.]
provisions of this circular.
13. This circular is available on SEBI website at [Link] under 1. Pursuant to the merger of erstwhile FMC with SEBI, all commodity
the category “Circulars” and “Info for Commodity Derivatives”. derivatives exchanges and their members are required to comply
with the provisions of Securities Contract (Regulation) Rules, 1957
Vikas Sukhwal (hereinafter referred to as SCRR) and SEBI (Stock-Brokers and
Deputy General Manager Sub-Brokers) Regulations, 1992(hereinafter referred to as Broker

06
Regulations) .
Price Dissemination through SMS/Electronic 2. In terms of Rules 14 and 15 of SCRR, every recognized stock exchange
Communication Facility and its members are required to maintain and preserve the specified
books of account and documents for a period ranging from two years
to five years. Further, as per regulation 18 of Broker Regulations, every
[Issued by the Securities and Exchange board of India vide Circular No: stock broker shall preserve the specified books of account and other
SEBI/HO/CDMRD/DMP/CIR/P/2016/76, dated 30.08.2016.] records for a minimum period of five years.
3. Further, SEBI vide its circular No. MRD/DoP/SE/Cir-21/2009 dated
1. As per Section 131(4) of Finance Act, 2015 all rules, directions, guidelines, December 09, 2009 prescribed norms regarding ‘Preservation of
instructions, circulars, or any like instruments, made by the erstwhile records’. It has been decided that the provisions of the said circular
FMC or the Central Government applicable to recognised associations shall be made applicable for all the commodity derivatives exchanges
under the FCRA would continue to remain in force for a period of and their members.
one year from the date on which FCRA was repealed (September 4. The provisions of this circular shall come in force from September 29,
29, 2015), or till such time as notified by SEBI, whichever is earlier. 2016.
2. In the past the erstwhile FMC had issued directives regarding price 5. This circular is issued in exercise of the powers conferred under Section
dissemination through SMS in the commodity derivatives. This 11(1) of the Securities and Exchange Board of India Act 1992 to protect
circular is being issued to consolidate and update such norms. the interests of investors in securities and to promote the development
3. Exchanges shall make efforts for registration of subscribers of Price of, and to regulate the securities market.
Dissemination services and disseminate derivatives prices to them on 6. The Exchanges are advised to:
a daily basis. Such direct price dissemination service would provide i. to make necessary amendments to the relevant bye-laws, rules
information to subscribers instantly in an efficient and transparent and regulations.
manner and thus shall be of great benefit to market participants. ii. bring the provisions of this circular to the notice of the stock
4. The Exchanges may provide price dissemination brokers of the Exchange and also to disseminate the same on
through SMS or any other electronic communication their website.
facility (instant messengers, email etc.) for all commodities. iii. communicate to SEBI, the status of the implementation of the
5. The service is to be provided free of cost to the subscribers. However, the provisions of this circular.
expenditure incurred for such price dissemination may be reimbursed 7. This circular is available on SEBI website at [Link] under
from the interest accrued on the Investor Protection Fund (IPF). the category “Circulars” and “Info for Commodity Derivatives”.
6. The provisions of this circular shall come into effect from September 29, Vikas Sukhwal
2016 in supersession of all earlier directives issued by erstwhile FMC Deputy General Manager

124 I
SEPTEMBER 2016 CHARTERED SECRETARY
08
Modification of Client Codes post Execution

FROM THE GOVERNMENT

be treated as modification of client code, provided that trades
of Trades on National and Regional in ‘Error account’ are subsequently liquidated in the market
Commodity Derivatives Exchanges– and not shifted to some other code.
b. Further, broker shall disclose the codes of accounts which are
Clarification classified as ‘Error accounts’ to the Exchanges. Each broker
should have a well-documented error policy approved by
[Issued by the Securities and Exchange board of India vide Circular No: the management of the broker. Exchanges shall periodically
SEBI/HO/CDMRD/DMP/CIR/P/2016/73, dated 19.08.2016.] review the trades flowing to the error accounts of the brokers.
4. If Exchange wishes to allow trading members to modify client
1. This circular is in reference to the SEBI circular No. SEBI/HO/ codes of non-institutional trades, it shall
CDMRD/ DMP/CIR/P/2016/43 dated March 29, 2016 on the a. lay down strict objective criteria (in line with the Para ‘2’
captioned subject. In connection with the directives issued under above), with the approval of its Governing Board, for
the said circular, following clarifications are issued: identification of genuine errors in client codes which may be
(i) Classification of genuine errors: The following shall be modified, and disclose the same to market in advance,
classified as genuine errors for the purpose of client code b. set up a mechanism to monitor that the trading members
modification:- modify client codes only as per the strict objective criteria,
a. Error due to communication and / or punching or typing and
such that the original client code / name and the modified c. ensure that modification of client codes is covered in the
client code / name are similar to each other. internal audit of trading members.
b. Modification within relatives (‘Relative’ for this purpose d. shall not allow proprietary trades to be modified as client
would mean as defined under Companies Act, 2013) trades and vice versa.
(ii) Error Account: e. shall levy a penalty and collect from trading members and
a. Shifting of trades to the ‘Error account’ of broker would credit the same to its Investor Protection Fund as under:
not be treated as modification of client code, provided
that trades in ‘Error account’ are subsequently liquidated ‘a’ as % of ‘b’ Penalty as % of ‘a’
in the market and not shifted to some other code.
≤5 1
b. Further, broker shall disclose the codes of accounts
which are classified as ‘Error accounts’ to the Exchanges. >5 2
Each broker should have a well-documented error policy
approved by the management of the broker. Exchanges Where
shall periodically review the trades flowing to the error a = Value (turnover) of non-institutional trades where client codes
accounts of the brokers. have been modified by a trading member in a segment
2. The above clarifications and earlier norms prescribed by SEBI during a month.
vide Circular dated March 29, 2016 with regard to client code b = Value (turnover) of non-institutional trades of the trading
modifications are consolidated and placed as Annexure-A. member in the segment during the month.
3. This circular is issued in exercise of the powers conferred under f. shall undertake stringent disciplinary actions against brokers
Section 11(1) of the Securities and Exchange Board of India Act who undertake frequent client code modifications. If ‘a’ as %
1992, read with Section 10 of the Securities Contracts (Regulation) of ‘b’, as defined above, exceeds 1% during a month, then
Act, 1956 to protect the interests of investors in securities and to the Stock Exchange shall conduct a special inspection of
promote the development of, and to regulate the securities market. the trading member to ascertain whether the modifications
4. This circular is available on SEBI website at [Link] under of client codes are being carried on as per the strict objective
the category “Circulars” and “Info for Commodity Derivatives”. criteria set by the Stock Exchange. Appropriate disciplinary
Vikas Sukhwal action shall be taken by the Exchange, if any deficiency is
Deputy General Manager observed.
5. Waiver of Penalty
Annexure-A a. Exchanges may waive penalty for a client code modification
where broker is able to produce evidence to the satisfaction
1. Exchanges may allow modifications of client codes of non- of the exchange to establish that the modification was on
institutional trades only to rectify a genuine error in entry of client account of a genuine error. However, not more than one such
code at the time of placing/ modifying the related order in all waiver per quarter may be given to a broker for modification
segments. in a client code.
2. For this purpose the following shall be classified as genuine errors: Explanation: If penalty wavier has been given with regard
a. Error due to communication and / or punching or typing such to a genuine client code modification from client code AB
that the original client code / name and the modified client to client code BA, no more penalty waivers shall be allowed
code / name are similar to each other. to the stock broker in the quarter for modifications related to
b. Modification within relatives (‘Relative’ for this purpose would client codes AB and BA.
mean as defined under Companies Act, 2013) b. Exchanges shall submit a report to SEBI every quarter
3. Error Account: regarding all such client code modifications where penalties
a. Shifting of trades to the ‘Error account’ of broker would not have been waived.

I
CHARTERED SECRETARY SEPTEMBER 2016 125
 09
Programmes sponsored by the Exchanges
FROM THE GOVERNMENT

1. Pursuant to Section 131 of the Finance Act, 2015 and Central

through media channels Government notification [Link]. 1/9/SM/2015 dated August 28,
2015, all recognized associations under the Forward Contracts
(Regulation) Act, 1952 are deemed to be recognized stock
[Issued by the Securities and Exchange board of India vide Circular No: exchanges under the Securities Contracts (Regulation) Act, 1956
SEBI/HO/CDMRD/DMP/CIR/P/2016/72, dated 19.08.2016.] with effect from September 28, 2015. This circular applies to National
Commodity Derivatives Exchanges (Exchanges) as defined in the
1. As per Section 131(4) of Finance Act, 2015 all rules, directions, Securities Contracts (Regulation) (Stock Exchanges and Clearing
guidelines, instructions, circulars, or any like instruments, made by the Corporations) (Amendment) Regulations, 2015.
erstwhile FMC or the Central Government applicable to recognized 2. Various technological developments and innovations, while bringing
associations under the FCRA would continue to remain in force for efficiency to the markets, may also pose certain risks. In order
a period of one year from the date on which FCRA was repealed to bring stability and integrity in the securities market, SEBI vide
(September 29, 2015), or till such time as notified by SEBI, whichever Circular No. CIR/MRD/DMS/34/2013, dated November 06, 2013,
is earlier. has prescribed stock broker system audit framework and mandated
2. Erstwhile FMC, from time to time, had prescribed various norms Stock Exchanges to ensure conduct of system audit of its members
related to “Programmes sponsored by the Exchanges”. This circular as per the prescribed framework and monitor the same.
is being issued to consolidate and update such norms prescribed by 3. It has been decided to make the provisions of the aforesaid circular
erstwhile FMC. applicable to the Brokers / Trading Members of the National
3. The Exchanges being neutral platforms, either as an institution or Commodity Derivatives Exchanges. The major provisions /
through their functionaries, shall not sponsor or associate themselves framework of System audit for Brokers / Trading members covered
in any manner with programmes/seminars/workshops/activities etc. are as under:
at various fora including but not limited to TV/Radio/Social Networks/ a) Audit Process
Websites or any other media in which the discussions/suggestions b) Auditor selection norms
are related to the price behaviour, price outlook, trading strategy, c) Terms of Reference ( TOR) for Type I, Type II, Type III Brokers
buy/sell recommendations, or similar subjects related to commodity 4. Based on the representations made by stock exchanges on the
derivatives. aforesaid circular, regarding exemption of system audit for Type I
4. Exchanges shall also ensure that the staff members of the Exchanges Brokers, matter was examined by Technical Advisory Committee
are not associated with such activities as mentioned above. The (TAC) and it was decided that such brokers may be exempted from
Exchanges shall lay down a suitable code of conduct for their system audit and the development of
executives and other staff members in this regard. NEAT / BOLT / Exchange provided terminals be included in the
5. The provisions of this circular shall come into force from the date of scope of Annual System Audit of Exchanges prescribed vide circular
the circular in supersession of all earlier directives issued by erstwhile dated CIR/MRD/DMS/13/2011 dated November 29, 2011.
FMC with regard to matters related to ‘Programmes sponsored by 5. In view of above, the provisions relating to Type I Brokers, as
the Exchanges’. mentioned in this circular, shall not be applicable to Type I Brokers.
6. This circular is issued in exercise of the powers conferred under However, such provisions shall be included in the TOR of the Annual
Section 11(1) of the Securities and Exchange Board of India Act System Audit for National Commodity Derivatives Exchanges as
1992, to protect the interests of investors in securities and to promote prescribed vide SEBI circular dated CIR/CDMRD/DEICE/01/2015
the development of, and to regulate the securities market. dated November 16, 2015.
7. The Exchanges are advised to: 6. The provisions of this circular shall be applicable from financial year
i. to make necessary amendments to the relevant bye-laws, rules 2016-17 onwards. For the financial year 2015-16, the Brokers /
and regulations. Trading Members who have commenced their annual system audit,
ii. bring the provisions of this circular to the notice of the stock may follow existing annual system audit framework prescribed by
brokers of the Exchange and also to disseminate the same on exchanges, if any. However, stock brokers/ trading members who
their website. are yet to commence annual system audit should carry out their
iii. communicate to SEBI, the status of the implementation of the system audit as per the prescribed framework as mentioned in this
provisions of this circular. circular.
8. This circular is available on SEBI website at [Link] under 7. The Exchanges are advised to:-
the category “Circulars” and “Info for Commodity Derivatives”. • Make necessary amendments to relevant bye-laws/rules for
Vikas Sukhwal the implementation of this circular.
Deputy General Manager • Communicate SEBI, the status of implementation of the

10
provisions of this circular.
Annual System Audit of Stock Brokers / 8. The circular is issued in exercise of the powers conferred under
Trading Members of National Commodity section 11(1) of the Securities and Exchange Board of India Act,
Derivatives Exchanges 1992, to protect the interests of investors in securities and to promote
the development of, and to regulate the securities market.
9. The circular is available on SEBI website at i.e. [Link].
[Issued by the Securities and Exchange board of India vide Circular No:
SEBI/HO/CDMRD/DEICE/CIR/P/2016/70, dated 11.08.2016.] B J DILIP
General Manager

126 I
SEPTEMBER 2016 CHARTERED SECRETARY
 News from the
Institute
5
& Regions

n MEMBERS ADMITTED/RESTORED
n CERTIFICATE OF PRACTICE ISSUED
n LICENTIATE ICSI ADMITTED
n COMPANY SECRETARIES BENEVOLENT FUND
n LIST OF PRACTISING MEMBERS/COMPANIES REGISTERED FOR IMPARTING TRAINING
n REGIONAL NEWS

I
CHARTERED SECRETARY SEPTEMBER 2016 127
128 I
SEPTEMBER 2016 CHARTERED SECRETARY
 NEWS FROM THE INSTITUTE
50 MR. GHULAM JEELANI RESHI FCS - 8720 NIRC
51 MS. NEELIMA JAIN FCS - 8721 WIRC
52 MR. DEEPAK KUMAR KAUSHAL FCS - 8722 NIRC
53 MS. NIYATI VISHAL SHAH FCS - 8723 WIRC

Institute
54 SH. PRABHAT SINGH FCS - 8724 NIRC
55 SH. CHIRAG BANSILAL KOTHARI FCS - 8725 WIRC

News
56 MS AARTI RAMA SHANKAR FALORH FCS - 8726 WIRC
57 MS. HARMEET KAUR FCS - 8727 NIRC
58 MS. SWATI JAIN FCS - 8728 NIRC
59 SH. RAVINDRA SADASHIV KULKARNI FCS - 8729 WIRC
60 MS. PRERNA SHARMA FCS - 8730 EIRC

Members Admitted
61 MS. KRITI KIRAN FCS - 8731 EIRC
62 MR. KASHIF ALI FCS - 8732 NIRC
63 SH. GOVIND RAM GUPTA FCS - 8733 NIRC
Sl. NAME MEMB REGION 64 MR. KIRAN N P FCS - 8734 SIRC
NO. NO.
65 MS. BHAWNA GUPTA FCS - 8735 NIRC
FELLOWS*
66 SH. SIKKAL R SHANMUGAM FCS - 8736 SIRC
1 SH. BHAVIK MANILAL GALA FCS - 8671 WIRC
67 SH. MANOJ KUMAR FCS - 8737 NIRC
2 SH. JAY DILIPKUMAR MEHTA FCS - 8672 WIRC
68 SH. SEETHARAMA JAYARAMAN FCS - 8738 SIRC
3 MS. DISHA BALCHANDANI FCS - 8673 WIRC
69 SH. PARAG MADHUKAR PHANSE FCS - 8739 WIRC
4 MS. NEHA PRAMOD KAREKAR FCS - 8674 WIRC
70 MR. SUNNY CHADHA FCS - 8740 NIRC
5 SH. ASHISH KUMAR SHRIVASTAVA FCS - 8675 WIRC
71 MS. JAYALAKSHMI RAJESH IYER FCS - 8741 WIRC
6 MRS. PREETI SONDHI FCS - 8676 NIRC
72 SH. KIRAN NAGRAJ GOWDA FCS - 8742 WIRC
7 MS. NISHA HANS FCS - 8677 NIRC
73 SH. SUNIL MAHESHWARI FCS - 8743 NIRC
8 MS. SAPNA DAGA FCS - 8678 NIRC
74 MR. UTKARSH GUPTA FCS - 8744 SIRC
9 MS. KHUSHBOO SURANA FCS - 8679 WIRC
75 SH. NARAYAN KUMAR DUJARI FCS - 8745 EIRC
10 MR. RAJESH R FCS - 8680 SIRC
76 MRS. RASHMI PATKAR FCS - 8746 WIRC
11 SH. UTHAM KUMAR UNNIKRISHNAN FCS - 8681 SIRC
77 MR. ROHIT KUMAR JAISWAL FCS - 8747 NIRC
12 SH. PUNIT KUMAR TRIVEDI FCS - 8682 NIRC
78 MS. SHAZAN ALI FCS - 8748 NIRC
13 MRS. JINAL VISHAL DAWDA FCS - 8683 WIRC
79 SH. BRIJMOHAN VASHISHTHA FCS - 8749 NIRC
14 SH. AJAY KUMAR JHA FCS - 8684 EIRC
80 SH. BISWAJIT GHOSH FCS - 8750 SIRC
15 MS. AARTI JAIN FCS - 8685 NIRC
81 SH. JASVIR SINGH FCS - 8751 NIRC
16 MS. KHYATI KAUSHIK SHAH FCS - 8686 WIRC
82 MR. AMIT KUMAR FCS - 8752 NIRC
17 SH. DHAWAL KANT SINGH FCS - 8687 NIRC
83 MS. NAINA HEMANT KURANE FCS - 8753 WIRC
18 MS. SANJANA JAIN FCS - 8688 NIRC
84 SH. ARUN SHIVA BHANDARI FCS - 8754 WIRC
19 SH. ULLASH CHANDRA PARIDA FCS - 8689 WIRC
85 SH. HARJIT SINGH TAKKAR FCS - 8755 NIRC
20 SH. SANJEEV KUMAR JHA FCS - 8690 NIRC
86 MS. PRITI JANI FCS - 8756 WIRC
21 SH. UTTAM SHETTY FCS - 8691 WIRC
87 SH. ARVIND HARLALKA FCS - 8757 EIRC
22 SH. AMARENDRA JENA FCS - 8692 SIRC
88 MS. JAYA BHARATHI KARUMURI FCS - 8758 SIRC
23 SH. NARASIMHA KARTHIK CHITYALA FCS - 8693 SIRC
89 SH. PRASHANT DUNDAPPA SHEDBAL FCS - 8759 SIRC
PRABHU
90 SH. ANURAG GUPTA FCS - 8760 NIRC
24 MR. RAJESH NARASIMHAN FCS - 8694 SIRC
91 MRS. PRERNA MITTAL FCS - 8761 NIRC
25 MR. ANUBHAV SRIVASTAVA FCS - 8695 NIRC
92 SH. RAJESH AGRAWAL FCS - 8762 NIRC
26 MS. RITI ARORA FCS - 8696 NIRC
93 MS. S SUBHASRI FCS - 8763 SIRC
27 SH. RAJU MUKHERJEE FCS - 8697 EIRC
94 SH. GAURANG M PAREKH FCS - 8764 WIRC
28 MR. PRAMOD KUMAR OJHA FCS - 8698 NIRC
95 MRS. MADHULIKA VIPIN RAWAT FCS - 8765 WIRC
29 MS ULKA KRISHNA KULKARNI FCS - 8699 WIRC
96 SH. RAHUL SHARMA FCS - 8766 NIRC
30 MR. ASHISH JAIN FCS - 8700 WIRC
97 SH. SANJAY KUMAR JAIN FCS - 8767 EIRC
31 SH. ABHISHEK KUMAR JAIN FCS - 8701 WIRC
98 SH. AJAYA KUMAR MAJHI FCS - 8768 EIRC
32 MS. GEETA TRIBHOVANDAS CANABAR FCS - 8702 WIRC
33 MR. DIVANSHU MITTAL FCS - 8703 NIRC 99 MS. SHAILLY GOEL FCS - 8769 NIRC
34 MR. HEMANT PITHABHAI NANDANIYA FCS - 8704 WIRC 100 SH. KUMAR CHANDRA MOHAN FCS - 8770 EIRC
35 MR. P SAJEE NAIR FCS - 8705 SIRC 101 MS. RASHMI CHHOTALAL SARVAIYA FCS - 8771 WIRC
36 SH. SUNIL KUMAR AGRAWAL FCS - 8706 WIRC 102 MS. NIKITA DUBEY FCS - 8772 NIRC
37 MS. GUNJAN RAJPAL FCS - 8707 NIRC 103 MR. VIRALKUMAR THAKER FCS - 8773 WIRC
38 SH. HARSH KUMAR ARORA FCS - 8708 NIRC 104 SH. PIYUSH KANTH FCS - 8774 NIRC
39 SH. DURGESH KUMAR JHA FCS - 8709 NIRC 105 MRS. SHWETA NITIN KULKARNI FCS - 8775 WIRC
40 MS. KAVITHA S FCS - 8710 SIRC 106 MS. ANITA MEHRA FCS - 8776 NIRC
41 MRS. RINKI GOYAL FCS - 8711 WIRC 107 MS. RULIJ AGARWAL FCS - 8777 SIRC
42 SH. ANSHUL AGARWAL FCS - 8712 NIRC 108 MS. RITU HARDEEP LAMBA FCS - 8778 WIRC
43 MR. UPENDER KUMAR FCS - 8713 NIRC 109 SH. JAYANTILAL RAGHUNATHRAM SUTHAR FCS - 8779 WIRC
44 MR. SHRI KRISHNA PRASAD FCS - 8714 SIRC 110 SH. ADITYA AGRAWAL FCS - 8780 NIRC
45 MR. VIKASH SETHI FCS - 8715 EIRC 111 MS. NISHA SINGHAL FCS - 8781 NIRC
46 SH. SUNIL KUMAR JAIN FCS - 8716 NIRC 112 SH. SUSHANT SUBHASH GAWADE FCS - 8782 WIRC
47 SH. SIDHARTH GHATAK FCS - 8717 NIRC 113 MS. MOUSUMI BANERJEE FCS - 8783 EIRC
48 SH. SUNIL SHARMA FCS - 8718 NIRC 114 MS. MEGHA JAIN FCS - 8784 NIRC
49 SH. ATIUTTAM PRASAD SINGH FCS - 8719 NIRC 115 SH. RANJIT SINGH CHAUHAN FCS - 8785 NIRC
116 MS. PRIYADARSHINI MAHAPATRA FCS - 8786 WIRC
*ADMITTED DURING THE PERIOD FROM 20.6.2016 TO 19.8.2016

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117 MRS. APARAJITA JOHARI FCS - 8787 NIRC 45 MR. NARENDRA MISHRA ACS - 46018 NIRC
118 MR. PRITESH VIJAYKUMAR GANGWAL FCS - 8788 WIRC 46 MR. ADESH KUMAR JAIN ACS - 46019 EIRC
119 SH. PAWAN ANCHALIA FCS - 8789 EIRC 47 MS. PRAGATI NAHATA ACS - 46020 EIRC
120 MR. ARDHENDU SHEKHAR RAUT FCS - 8790 EIRC 48 MS. SREYA BOSE ACS - 46021 EIRC
121 MS. RICHA MOHIT RAJGARIA FCS - 8791 WIRC 49 MS. NEHA GOEL ACS - 46022 EIRC
122 SH. RAKESH AGRAWAL FCS - 8792 EIRC 50 MR. PULKIT GUPTA ACS - 46023 NIRC
123 MS. NEHA GUPTA FCS - 8793 NIRC 51 MR. PRITESH KUMAR PRIYADARESEE ACS - 46024 NIRC
124 SH. PRATAP GIRI SUBRAMANYAM FCS - 8794 SIRC 52 MR. ASHUTOSH SHARMA ACS - 46025 NIRC
125 SH. M H V S N S PRASAD FCS - 8795 SIRC 53 MR. KAPIL GUPTA ACS - 46026 NIRC
126 MR. KAILASH CHANDRA PANDEY FCS - 8796 NIRC 54 MR. HANUMAN PRASAD ACS - 46027 NIRC
127 SH. AMOD KUMAR FCS - 8797 NIRC 55 MR. ANURAG MISHRA ACS - 46028 NIRC
128 MS. AMISHA VIJAY SHAH FCS - 8798 WIRC 56 MR. ABHINAV GUPTA ACS - 46029 NIRC
129 MS RASHMI BAJPAI FCS - 8799 NIRC 57 MR. KAMRAN HABIB ACS - 46030 NIRC
130 MRS. REKHA MITTAL FCS - 8800 NIRC 58 MR. KESHAV LAHOTI ACS - 46031 NIRC
131 MS. SANGEETA NASSA FCS - 8801 NIRC 59 MR. ROHIT KUMAR SOLANKI ACS - 46032 NIRC
132 MR. VISHVASKUMAR B AGRAWAL FCS - 8802 WIRC 60 MS. SANDEEP KAUR ACS - 46033 NIRC
133 SH. SUNISH MATHEW P FCS - 8803 SIRC 61 MS. DARPAN GUPTA ACS - 46034 NIRC
134 SH. CHANDRA SEKHAR RAJANALA FCS - 8804 SIRC 62 MS. PALLAVI SAHNI ACS - 46035 NIRC
135 MS. DEBAMITRA GUHA FCS - 8805 NIRC 63 MR. RAHUL KUMAR VERMA ACS - 46036 NIRC
136 SH RAJESH SHARMA FCS - 8806 NIRC 64 MS. SAKSHI DUREJA ACS - 46037 NIRC
65 MR. VIJAY BANSAL ACS - 46038 NIRC
ASSOCIATES 66 MS. POOJA TRIPATHI ACS - 46039 NIRC
1 MS. ALKA PATNI ACS - 45974 EIRC 67 MS. NEHA SHARMA ACS - 46040 NIRC
2 MS. SWATI GOEL ACS - 45975 EIRC 68 MR. ANKIT MAHNOT ACS - 46041 NIRC
3 MR. SNEHIL MISHRA ACS - 45976 NIRC 69 MR. SHOBHIT GERA ACS - 46042 NIRC
4 MS. RUCHIKA BERIWAL ACS - 45977 WIRC 70 MR. SUNIL TIWARI ACS - 46043 NIRC
5 MS. SIMRAN BHANSALI ACS - 45978 EIRC 71 MR. ISHANT ACS - 46044 NIRC
6 MS. PRIYA SUREKA ACS - 45979 EIRC 72 MS. ASHIMA ANEJA ACS - 46045 NIRC
7 MR. MANISH SHARMA ACS - 45980 NIRC 73 MS. SRIVIDHYA JAYASANKAR ACS - 46046 SIRC
8 MR. NITIN JAISWAL ACS - 45981 NIRC 74 MS. RADHA SUSHIL KUMAR SHARMA ACS - 46047 WIRC
9 MS. SHAGUN BAJPAI ACS - 45982 NIRC 75 MS. DIVYA SINGH ACS - 46048 WIRC
10 MR. ARPIT AGARWAL ACS - 45983 NIRC 76 MR. PIYUSH ANIL KUMAR WANI ACS - 46049 WIRC
11 MS. KALINDEE CHOUDHARY ACS - 45984 WIRC 77 MS. KHUSHBU DINESH KUMAR SHAH ACS - 46050 WIRC
12 MS. SHEFALI SHUKLA ACS - 45985 NIRC 78 MS. JYOTI GOPAL VERMA ACS - 46051 WIRC
13 MR. PEEYUSH GUPTA ACS - 45986 NIRC 79 MS. NEHA ANIL SANGAM ACS - 46052 WIRC
14 MS. EKTA JAIN ACS - 45987 NIRC 80 MS. KHESHKANI KOMAL KISHANCHAND ACS - 46053 WIRC
15 MR. MUKESH NITHARWAL ACS - 45988 NIRC 81 MS. POORNIMA SUBRAMANIAN ACS - 46054 WIRC
16 MR. MANJUNATHA HEGDE ACS - 45989 SIRC 82 MR. ROHIT MERANI ACS - 46055 WIRC
17 MS. NR SIVA SARANYA ACS - 45990 SIRC 83 MS. RICHABEN ATULKUMAR SHAH ACS - 46056 WIRC
18 MR. VEMPATI VENKATESH ACS - 45991 SIRC 84 MS. DIKSHITABEN CHITRANJANKUMAR PANDIT ACS - 46057 WIRC
19 MS. DIVYA BURAD S ACS - 45992 SIRC 85 MS. RACHITA SOMAMI ACS - 46058 WIRC
20 MS. RASHIKA DUGAR ACS - 45993 SIRC 86 MR. PAWAN KUMAR ACS - 46059 NIRC
21 MS. DIPTI GANESH RAO ACS - 45994 SIRC 87 MS. DIMPLE MIRCHANDANI ACS - 46060 NIRC
22 MS. KRUTI HARESH SHAH ACS - 45995 WIRC 88 MR. BARAMDEO HIRALAL SHARMA ACS - 46061 WIRC
23 MS. POOJA DILIP KOTHARI ACS - 45996 WIRC 89 MS. ANJALI GIRISHBHAI RAYTHATHTHA ACS - 46062 WIRC
24 MS. FALGUNI DILIPBHAI SHAH ACS - 45997 WIRC 90 MS. INA KOTHARI ACS - 46063 NIRC
25 MS. PRIYANKA PARAKH ACS - 45998 WIRC 91 MS. CAUVERAMMA B B ACS - 46064 SIRC
26 MS. GREESHMA KAILASH MANJAL ACS - 45999 WIRC 92 MS. MADHAVI ANILKUMAR DAPTARI ACS - 46065 WIRC
27 MR. MANISH SHARMA ACS - 46000 NIRC 93 MS. ANJANA GUPTA ACS - 46066 EIRC
28 MS. MEETA DINESHBHAI DESAI ACS - 46001 WIRC 94 MR. NARAYAN RATAWA ACS - 46067 EIRC
29 MS. PAAWAN OGRA ACS - 46002 WIRC 95 MS. AYESHA SHAH ACS - 46068 EIRC
30 MS. RAJNI ANIL SHARMA ACS - 46003 WIRC 96 MR. MANISH AGARWAL ACS - 46069 EIRC
31 MR. NIRAJ SHAILESH KUMAR SHAH ACS - 46004 WIRC 97 MS. SHWETA PATHAK ACS - 46070 NIRC
32 MS. SMITA ANAND MISHRA ACS - 46005 WIRC 98 MR. REMO JOHN ACS - 46071 NIRC
33 MS. ALPANA GUPTA ACS - 46006 NIRC 99 MS. SHRADHA SHUKLA ACS - 46072 NIRC
34 MR. NIKHIL PANSARI ACS - 46007 EIRC 100 MS. SURABHI NAYAK ACS - 46073 EIRC
35 MR. VISHAL PADAMRAJ BHANDARI ACS - 46008 WIRC 101 MS. NEHA NITIN CHHAJED ACS - 46074 WIRC
36 MS. MILI GIRISH TRIVEDI ACS - 46009 WIRC 102 MS. JAYA NIHALANI ACS - 46075 WIRC
37 MS. PATEL BHAVANA DHANJIBHAI PATEL ACS - 46010 WIRC 103 MS. SHILPA JHUNJHUNWALA ACS - 46076 EIRC
38 MS. NEELAM MANWANI ACS - 46011 NIRC 104 MR. RAGHUNATH PRUSTY ACS - 46077 EIRC
39 MS. REHMAT FATEMA SABBIRALI PATAWAT ACS - 46012 WIRC 105 MS. NIDHI GOEL ACS - 46078 EIRC
40 MS. VARSHA AGRAWAL ACS - 46013 EIRC 106 MS. NIDHI SHARMA ACS - 46079 EIRC
41 MS. TANVI BHATIA ACS - 46014 NIRC 107 MR. BIKASH KUMAR AGARWALA ACS - 46080 EIRC
42 MS. KARISHMA TAPARIA ACS - 46015 NIRC 108 MS. NEHA GOENKA ACS - 46081 EIRC
43 MS. KHYATI RAKESH DOSHI ACS - 46016 WIRC 109 MR. AMRITESH KUMAR SHUKLA ACS - 46082 NIRC
44 MS. ANNIE GARODIA ACS - 46017 NIRC 110 MR. ANUJ MAHESHWARI ACS - 46083 EIRC
111 MS. RAKSHA KUMARI ACS - 46084 EIRC
* ADMITTED DURING THE PERIOD FROM 20.6.2016 TO 19.8.2016

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112 MS. PRIYA SARKAR ACS - 46085 EIRC 180 MR. SYED UZAIR ACS - 46153 SIRC
113 MS. SWETA PAREEK ACS - 46086 EIRC 181 MS. PAYAL M ACS - 46154 SIRC
114 MS. NIKITA CHOKHANI ACS - 46087 EIRC 182 MR. SUNIL KUMAR KACHAM ACS - 46155 SIRC
115 MS. CHETNA BATRA ACS - 46088 NIRC 183 MS. DEEPIKA NAGARAJ BHANDIWAD ACS - 46156 SIRC
116 MS. SONIKA MAHESHWARI ACS - 46089 NIRC 184 MR. VINAYAK L ODUGOUDAR ACS - 46157 SIRC
117 MR. PRATIK JAIN ACS - 46090 NIRC 185 MS. FASSEL ANAND ACS - 46158 SIRC
118 MS. BABITA JAIN ACS - 46091 NIRC 186 MS. GAYATHRI B S ACS - 46159 SIRC
119 MS. SANHITA NAGENDRA NADKARNI ACS - 46092 SIRC 187 MS. ALPHONSA THOMAS ACS - 46160 SIRC
120 MR. BALAJI M ACS - 46093 SIRC 188 MR. SURESH NAGAPPA GANACHARI ACS - 46161 SIRC
121 MR. GANESH BHAT ACS - 46094 SIRC 189 MS. SAMATA MEGHRAJ JAIN ACS - 46162 SIRC
122 MR. D ANIL KUMAR ACS - 46095 NIRC 190 MR. DATTATREY NAGESH DHAGE ACS - 46163 SIRC
123 MR. DEEPAK VYAS ACS - 46096 WIRC 191 MR. SAURABH KRISHNA PATHAK ACS - 46164 WIRC
124 MR. ASHISH POPTANI ACS - 46097 NIRC 192 MS. AMRAPALI EKNATH UGILE ACS - 46165 WIRC
125 MR. GAURAV GUPTA ACS - 46098 NIRC 193 MR. VISHAL KANTIBHAI SONDAGAR ACS - 46166 WIRC
126 MS. SONIA RAWAT ACS - 46099 NIRC 194 MR. SANJAY KANHAIYALAL GUPTA ACS - 46167 WIRC
127 MR. GAGAN ARORA ACS - 46100 NIRC 195 MS. NIMITA RAJEN DAMANI ACS - 46168 WIRC
128 MS. NIDHI SHARMA ACS - 46101 NIRC 196 MS. AMI DHARMENDRA PUROHIT ACS - 46169 WIRC
129 MR. MOHIT KESARWANI ACS - 46102 NIRC 197 MS. SHALMALI NITIN MOKASHI ACS - 46170 WIRC
130 MS. JAYA VERMA ACS - 46103 NIRC 198 MS. PRATHIBHA BARIKRAO DHONE ACS - 46171 WIRC
131 MS. STAFFY KAPOOR ACS - 46104 NIRC 199 MS. NIKITA KANUBHAI GALA ACS - 46172 WIRC
132 MR. RAJ KUMAR ACS - 46105 NIRC 200 MR. GAURAV AGRAWAL ACS - 46173 WIRC
133 MR. V M UNNIKRISHNAN ACS - 46106 SIRC 201 MS. SHWETA JAIN ACS - 46174 WIRC
134 MS. SHRUTI RAWAT ACS - 46107 NIRC 202 MR. ASHWIN BINJWA ACS - 46175 WIRC
135 MS. SHELLY GUPTA ACS - 46108 NIRC 203 MR. BABAN TAMRAKAR ACS - 46176 WIRC
136 MS. SHIBA KUKREJA ACS - 46109 NIRC 204 MS. DUHITA VIDYADHAR CHAKRADEO ACS - 46177 WIRC
137 MR. SUMIT KUMAR ACS - 46110 NIRC 205 MS. KUNJAL KIRAN PAREKH ACS - 46178 WIRC
138 MR. ASHWINDER SINGH ACS - 46111 NIRC 206 MS. KOMAL MITHILESH KHETAN ACS - 46179 SIRC
139 MR. MOHIT BANSAL ACS - 46112 NIRC 207 MR. MAYANK BHARGAVA ACS - 46180 WIRC
140 MS. SHIVANI SAXENA ACS - 46113 NIRC 208 MS. AKANKSHA GUPTA ACS - 46181 WIRC
141 MR. GOPAL KANDPAL ACS - 46114 NIRC 209 MR. BALKRISHNA OM PRAKASH TODI ACS -46182 WIRC
142 MS. BHUMIKA CHADHA ACS - 46115 NIRC 210 MS. PAYAL NARENDRA VYAS ACS - 46183 WIRC
143 MR. RAHUL YADAV ACS - 46116 NIRC 211 MS. NAMRATA GIRISH VYAS ACS - 46184 WIRC
144 MR. ARUN KUMAR ACS - 46117 NIRC 212 MS. KAJAL JAYBHAI SHAH ACS - 46185 WIRC
145 MS. ANJLI ACS - 46118 NIRC 213 MS. NAYAN PANDYA ACS - 46186 WIRC
146 MS. NIKETA SETHI ACS - 46119 NIRC 214 MS. KARISHMA KAKKAR ACS - 46187 WIRC
147 MR. LAKSHIT MEHTA ACS - 46120 NIRC 215 MS. NISHA KRUSHNSINH JADEJA ACS - 46188 WIRC
148 MS. PALLAVI SHARMA ACS - 46121 NIRC 216 MS. DISHA VIKRAMBHAI PATEL ACS - 46189 WIRC
149 MR. RAHUL SHARMA ACS - 46122 NIRC 217 MS. NAMRATA ROMIL RATHI ACS - 46190 WIRC
150 MS. EKTA MUNDHRA ACS - 46123 NIRC 218 MR. SUNASARA ABBASALI RAHIMBHAI ACS - 46191 WIRC
151 MS. KARISHMA JAIN ACS - 46124 NIRC 219 MS. RACHANA ROHIDAS NAGVENKAR ACS - 46192 WIRC
152 MS. SHIVANI GHATALIYA ACS - 46125 NIRC 220 MS. DHWANI JAGDISH CHHEDA ACS - 46193 WIRC
153 MS. MANISHA SWAMI ACS - 46126 WIRC 221 MS. KSHIRSAGAR SRUSHTI PRAMOD ACS - 46194 WIRC
154 MS. TANVI MALHOTRA ACS - 46127 NIRC 222 MR. AMBER DURGESH KESHARWANI ACS - 46195 WIRC
155 MR. AJAY KUMAR JHA ACS - 46128 NIRC 223 MS. CHITRA SHRIDHAR ACS - 46196 WIRC
156 MS. VAISHALI MATHPAL ACS - 46129 NIRC 224 MR. KARMIT HARIBHADRABHAI SHETH ACS - 46197 WIRC
157 MS. RAVEENA TANDON ACS - 46130 NIRC 225 MR. KULDEEP DHAPKARI ACS - 46198 WIRC
158 MS. NIKITA GUPTA ACS - 46131 NIRC 226 MS. ENA LALWANI ACS - 46199 WIRC
159 MR. PUNEET VERMA ACS - 46132 NIRC 227 MS. DEEPTI JAIN ACS - 46200 WIRC
160 MS. KOMAL KHURANA ACS - 46133 NIRC 228 MS. SHIKHA KHANDELWAL ACS - 46201 WIRC
161 MR. GURUPDESH SINGH ACS - 46134 NIRC 229 MS. PATEL JEEL HARESHBHAI ACS - 46202 WIRC
162 MS. KRITI AGARWAL ACS - 46135 NIRC 230 MR. KUSH PRABHAKAR ACS - 46203 WIRC
163 MS. SWATI AGARWAL ACS - 46136 NIRC 231 MS. ANSHIKA GOYAL ACS - 46204 WIRC
164 MR. ANSHUL NENAWATI ACS - 46137 NIRC 232 MR. ANSHUL JAIN ACS - 46205 WIRC
165 MR. RAJENDRA GOUR ACS - 46138 NIRC 233 MS. JASMEET KAUR SALUJA ACS - 46206 WIRC
166 MS. SHALINI TALWAR ACS - 46139 NIRC 234 MS. ASHA RAMBAHADUR RATHOR ACS - 46207 WIRC
167 MR. HIMANSHU AGARWAL ACS - 46140 NIRC 235 MS. ANKITA THUKRAL ACS - 46208 WIRC
168 MR. SHIKHAR AGARWAL ACS - 46141 NIRC 236 MS. PRAJAKTA SANJIV PATIL ACS - 46209 WIRC
169 MS. DIXIT SANEJA ACS - 46142 NIRC 237 MS. DIVYA PRITANGIRI GOSWAMI ACS - 46210 WIRC
170 MS. SANGEETA TAMBOLI ACS - 46143 NIRC 238 MR. GHETIA DHAVALKUMAR PARESHBHAI ACS - 46211 WIRC
171 MR. GIRISH NAGAR ACS - 46144 NIRC 239 MR. ANKIT DUBEY ACS - 46212 WIRC
172 MS. PRIYANKA RANA ACS - 46145 NIRC 240 MS. KINARIWALA STUTI KALPESHKUMAR ACS - 46213 WIRC
173 MR. MANKALA SHARATH CHANDRA ACS - 46146 SIRC 241 MS. MISHIKA CHHABRA ACS - 46214 WIRC
174 MS. MANASA MP ACS - 46147 SIRC 242 MR. MADHAV SRIVASTAVA ACS - 46215 NIRC
175 MS. ARUNDHATI DINESH ACS - 46148 SIRC 243 MR. BHARAT M JOSHI ACS - 46216 WIRC
176 MR. ARANKAL SHIVAKUMAR GURUPADAPPA ACS - 46149 SIRC 244 MS. NEHA DHANDHANIA ACS - 46217 EIRC
177 MR. NARASIMHARAJU O R ACS - 46150 SIRC 245 MS. MONIKA CHORARIA ACS - 46218 SIRC
178 MS. PRATIMA GOTTUMUKKALA ACS - 46151 SIRC 246 MS. REENA JOSHI ACS - 46219 WIRC
179 MS. SHWETA VYAS ACS - 46152 SIRC 247 MS. SANDHYA RAGHAVAN ACS - 46220 SIRC

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248 MS. SWETA VIPINCHANDRA SAWANT ACS - 46221 WIRC 315 MS. MEMON AKSHABANU MOHMEDHUSAIN ACS - 46288 WIRC
249 MR. VEERASH MYSORE JAGADISH ACS - 46222 SIRC 316 MS. NEHA MAHESHWARI ACS - 46289 WIRC
250 MR. VENKATESH C ACS - 46223 SIRC 317 MS. P MANICKAVALLI ACS - 46290 SIRC
251 MR. SUROJIT BHUMIJ ACS - 46224 EIRC 318 MR. PUNEET MUNDRA ACS - 46291 NIRC
252 MS. VRUSHA PATEL ACS - 46225 WIRC 319 MS. PRITI SAXENA ACS - 46292 WIRC
253 MS. AKANSHA JAIN ACS - 46226 NIRC 320 MR. VIKAS BABU SINGH PANWAR ACS - 46293 WIRC
254 MS. NEHA GUPTA ACS - 46227 NIRC 321 MS. NITIKA GUPTA ACS - 46294 EIRC
255 MS. BHAWINI LODHA ACS - 46228 NIRC 322 MS. PARUL ANUJ DADHICH ACS - 46295 WIRC
256 MR. SATNAM SINGH SANGAR ACS - 46229 EIRC 323 MS. PREETI TAYAL ACS - 46296 NIRC
257 MS. AASTHA BEHL ACS - 46230 NIRC 324 MS. AAYUSHI AGRAWAL ACS - 46297 SIRC
258 MR. NARESH KUMAR ACS - 46231 NIRC 325 MR. MOHIT SACHDEVA ACS - 46298 NIRC
259 MS. VARSHA CHIDAMBER PATHAK ACS - 46232 SIRC 326 MS. AFSAR JAHAN ACS - 46299 NIRC
260 MS. ISHARATHUNNISA BEGUM ACS - 46233 SIRC 327 MS. SANSKRITI GAUR ACS - 46300 NIRC
261 MR. DODDAPANENI SATWIK ACS - 46234 SIRC 328 MR. PRAVEEN GOPALKRISHNA HEGDE ACS - 46301 SIRC
262 MR. VIRAL HARESHBHAI THAKRAR ACS - 46235 WIRC 329 MS. AAKANKSHA ACS - 46302 NIRC
263 MS. LOHITA JAGDISHCHANDRA KHAIRNAR ACS - 46236 WIRC 330 MS. NIDA SIDDIQUI ACS - 46303 EIRC
264 MR. ABU SUFYAN NISAR AHMED ACS - 46237 WIRC 331 MR. KUSH KISHOREKUMAR BHATT ACS - 46304 WIRC
265 MS. SUNAYANA PURI ACS - 46238 NIRC 332 MR. RONAKKUMAR NARENDRABHAI LALWANI ACS - 46305 WIRC
266 MS. ANNU AGARWAL ACS - 46239 EIRC 333 MS. AKANKSHA KOTWANI ACS - 46306 WIRC
267 MR. AVIJEET PATTANAIK ACS - 46240 EIRC 334 MR. KULDEEP SINGH RATHORE ACS - 46307 WIRC
268 MR. RADHE SHYAM JANGID ACS - 46241 NIRC 335 MR. DENNIS ACS - 46308 SIRC
269 MS. RITU KHURANA ACS - 46242 NIRC 336 MR. SANDEEP AHUJA ACS - 46309 NIRC
270 MR. GAUTAM KUMAR ACS - 46243 NIRC 337 MS. GARGI MUKHERJEE ACS - 46310 EIRC
271 MS. VANYA YADAV ACS - 46244 NIRC 338 MR. AMIT PODDAR ACS - 46311 EIRC
272 MS. PRIYANKA KAKHANI ACS - 46245 NIRC 339 MR. PRIYARUP MUKHERJEE ACS - 46312 EIRC
273 MS. NIKITA JAIN ACS - 46246 NIRC 340 MR. SUMIT KUMAR ACS - 46313 EIRC
274 MR. LOKESH SHARMA ACS - 46247 NIRC 341 MR. NAVIN KUMAR BHIWANIWALA ACS - 46314 EIRC
275 MS. SHIPALI GUPTA ACS - 46248 NIRC 342 MS. AYESHA SIDDIQUE ACS - 46315 EIRC
276 MR. SIDHANT GOYAL ACS - 46249 NIRC 343 MR. VIKASH KUMAR ACS - 46316 EIRC
277 MS. RITU GARG ACS - 46250 NIRC 344 MS. DEEPA BANSAL ACS - 46317 EIRC
278 MR. T SRINIVASAN ACS - 46251 SIRC 345 MR. NAVEEN JAISWAL ACS - 46318 EIRC
279 MS. SAMAYAMANTULA SAROJINI ACS - 46252 SIRC 346 MR. SANDEEP KUMAR PODDAR ACS - 46319 EIRC
280 MR. SURESH CHANDRA NAINWAL ACS - 46253 NIRC 347 MS. SNEHA KEWAT ACS - 46320 EIRC
281 MS. MEENAKSHI GUPTA ACS - 46254 EIRC 348 MR. ANIL YADAV ACS - 46321 EIRC
282 MS. MONIKA MANNAN ACS - 46255 NIRC 349 MS. NIKITA KOTHARI ACS - 46322 EIRC
283 MS. DEEPTI JAYANT NIKAM ACS - 46256 SIRC 350 MS. KIRAN GUPTA ACS - 46323 EIRC
284 MS. VIDHI SHYAMSUNDAR JALAN ACS - 46257 WIRC 351 MS. RASHI NAGORI ACS - 46324 EIRC
285 MS. ARPITA NAND KUMAR JALNAWALA ACS - 46258 WIRC 352 MR. VISHAL GARODIA ACS - 46325 EIRC
286 MS. ITISHREE GARG ACS - 46259 WIRC 353 MS. PAPIYA BANERJEE ACS - 46326 EIRC
287 MR. PRAVEEN RAMKISHOR SIKCHI ACS - 46260 WIRC 354 MS. JYOTI BHARTIA ACS - 46327 EIRC
288 MR. SONU TIWARI ACS - 46261 EIRC 355 MS. PRIYANKA RAWAT ACS - 46328 EIRC
289 MR. SACHIN KUMAR SINGH ACS - 46262 EIRC 356 MS. BANDANA SAHA ACS - 46329 EIRC
290 MS. ANKITA RATHI ACS - 46263 EIRC 357 MR. RITESH KUMAR SINGH ACS - 46330 EIRC
291 MRS. SHIPRA DEVGUN ACS - 46264 NIRC 358 MS. PRIYANKA MUNDHRA ACS - 46331 EIRC
292 MS. POONAM SHARMA ACS - 46265 NIRC 359 MS. ANJALI RAJ KHATNANI ACS - 46332 EIRC
293 MR. ABHINAV AGARWAL ACS - 46266 NIRC 360 MS. PALLAVI SINGH ACS - 46333 EIRC
294 MS. SUPREET KAUR ACS - 46267 NIRC 361 MS. NISHU KAKKAR ACS - 46334 EIRC
295 MS. KIRTIKA BHARDWAJ ACS - 46268 NIRC 362 MS. RICHA ARORA ACS - 46335 NIRC
296 MR. DHEERAJ KUMAR PANDEY ACS - 46269 NIRC 363 MR. RAJESH GAMBHIR ACS - 46336 NIRC
297 MS. ALISHA WADHWA ACS - 46270 NIRC 364 MR. HARSH SEHRAWAT ACS - 46337 NIRC
298 MR. OM PRAKASH SHARMA ACS - 46271 NIRC 365 MR. MANAN KHERA ACS - 46338 NIRC
299 MS. RIDHIMA AHUJA ACS - 46272 NIRC 366 MS. SRIPARNA DAS ACS - 46339 NIRC
300 MR. JATIN BAJAJ ACS - 46273 NIRC 367 MR. NIKHIL BHARGAVA ACS - 46340 NIRC
301 MR. ASHISH KUMAR GUPTA ACS - 46274 NIRC 368 MS. SHILPI ROY ACS - 46341 NIRC
302 MS. DOLLY SHARMA ACS - 46275 NIRC 369 MS. ANKITA NATANI ACS - 46342 NIRC
303 MS. CHHAVI JASORIA ACS - 46276 NIRC 370 MS. LAVISHA BANSAL ACS - 46343 NIRC
304 MR. CHANDER MOHAN AGGARWAL ACS - 46277 NIRC 371 MS. BHARTI KHANDELWAL ACS - 46344 NIRC
305 MR. PUSHKAR LAL JAT ACS - 46278 NIRC 372 MR. PARDEEP KUMAR ACS - 46345 NIRC
306 MR. NAVEEN KUMAR ACS - 46279 NIRC 373 MS. KAVITA DHINGRA ACS - 46346 NIRC
307 MR. PRAVENDRA KUMAR PAL ACS - 46280 WIRC 374 MS. PREETI BHARDWAJ ACS - 46347 NIRC
308 MS. ASMI AMEY GADGIL ACS - 46281 WIRC 375 MS. SONU GOEL ACS - 46348 NIRC
309 MR. BALAWANT SINGH ACS - 46282 WIRC 376 MS. BHARTI SHARMA ACS - 46349 NIRC
310 MR. ANUP VISHWAKARMA ACS - 46283 WIRC 377 MS. SIDDHI PAREEK ACS - 46350 NIRC
311 MR. MAKWANA ALPESH SOMJIBHAI ACS - 46284 WIRC 378 MR. ABHISHEK GOSWAMI ACS - 46351 NIRC
312 MR. SUMIT SHIVHARE ACS - 46285 WIRC 379 MS. ANU SHARMA ACS - 46352 NIRC
313 MS. NIKITA BANSAL ACS - 46286 WIRC 380 MS. SHAILY GUPTA ACS - 46353 NIRC
314 MS. HAZLIN BLANY DSOUZA ACS - 46287 WIRC 381 MS. POOJA JAIN ACS - 46354 NIRC

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382 MS. GULRAJ KAUR ACS - 46355 NIRC 449 MR. TARUN PRAVIN BANODE ACS - 46422 WIRC
383 MR. MOHIT SINGH KHARAYAT ACS - 46356 NIRC 450 MR. ANKIT JAIN ACS - 46423 WIRC
384 MS. RUSHITA JAIN ACS - 46357 NIRC 451 MR. MANISH SINGH PAYAL ACS - 46424 NIRC
385 MS. NITU ACS - 46358 NIRC 452 MR. GIRISH AGRAWAL ACS - 46425 WIRC
386 MS. AAKRITI AGARWAL ACS - 46359 NIRC 453 DR. LAKSHMI MANEAN ACS - 46426 SIRC
387 MS. ADITI SHARMA ACS - 46360 NIRC 454 MR. CHANDAN ARORA ACS - 46427 NIRC
388 MS. ANJALI SINGH ACS - 46361 WIRC 455 MS. SONAM AGARWAL ACS - 46428 EIRC
389 MS. ARBINA FATIMA ACS - 46362 NIRC 456 MR. AVINASH RAJU V ACS - 46429 EIRC
390 MS. DIVYA AGARWAL ACS - 46363 NIRC 457 MS. MRINALINI CHAUDHURI ACS - 46430 EIRC
391 MS. BHUMIKA MAKHIJA ACS - 46364 NIRC 458 MR. SATISH KUMAR THAKUR ACS - 46431 EIRC
392 MS. KIRAN SHARMA ACS - 46365 NIRC 459 MR. ARIJIT GHOSH ACS - 46432 EIRC
393 MS. ADITI YADAV ACS - 46366 NIRC 460 MS. KHUSHBOO RUSTAGI ACS - 46433 EIRC
394 MR. MAHAVEER JAIN ACS - 46367 SIRC 461 MS. JAYA PATHAK ACS - 46434 EIRC
395 MR. KANNAN R ACS - 46368 SIRC 462 MR. ANURAG GUPTA ACS - 46435 EIRC
396 MR. SIDDHARTH DUBEY ACS - 46369 SIRC 463 MS. SHALU KATHURIA ACS - 46436 EIRC
397 MS. J DHANYA ACS - 46370 SIRC 464 MS. PUJA RATHI ACS - 46437 EIRC
398 MR. KARTHISWARAN A ACS - 46371 SIRC 465 MS. HIRAL SANJAY DESAI ACS - 46438 EIRC
399 MS. NEETHA MURTHY H N ACS - 46372 SIRC 466 MR. YOGESH KUMAR SHARMA ACS - 46439 NIRC
400 MR. K SURIYANARAYANAN ACS - 46373 SIRC 467 MS. RITIKA KHANNA ACS - 46440 NIRC
401 MS. HITA KISHORBHAI VADGAMA ACS - 46374 WIRC 468 MS. TRISHNA CHOUDHARY ACS - 46441 NIRC
402 MR. HARSH KAMAL SANTHARA ACS - 46375 WIRC 469 MS. PARMA JAIN ACS - 46442 NIRC
403 MS. URVI MINESH SHAH ACS - 46376 WIRC 470 MR. ASHISH ACS - 46443 NIRC
404 MR. KEDAR MUKUL MENDJOGE ACS - 46377 WIRC 471 MS. MAMTA TIWARI ACS - 46444 NIRC
405 MS. KHUSHBU RAMLAL SUTHAR ACS - 46378 WIRC 472 MS. PREETI SINGH ACS - 46445 NIRC
406 MR. SHREE KRISHNA VIJAY JOSHI ACS - 46379 WIRC 473 MS. SURABHI GUPTA ACS - 46446 NIRC
407 MR. SHRIRAM DILIP PADHYE ACS - 46380 WIRC 474 MS. SANDHYA ACS - 46447 NIRC
408 MR. DHAVAL NARESH BHAI DARJI ACS - 46381 WIRC 475 MS. JYOTI KUMARI ACS - 46448 NIRC
409 MR. AMAR VINOD DEDHIA ACS - 46382 WIRC 476 MS. KOMAL ACS - 46449 NIRC
410 MS. DHARA UDIT SHAH ACS - 46383 WIRC 477 MS. KRATI AGARWAL ACS - 46450 NIRC
411 MR. SHYAMRAO RAMCHANDRA DHARGALKAR ACS - 46384 WIRC 478 MS. AKANKSHA MODI ACS - 46451 NIRC
412 MS. PRATHAMA NITIN GANDHI ACS - 46385 WIRC 479 MS. SHIVANI ACS - 46452 NIRC
413 MS. JYOTI VINODKUMAR AGARWAL ACS - 46386 WIRC 480 MS. RIDDHI SHARMA ACS - 46453 NIRC
414 MS. DIMPLE RAMESHBHAI PIPALIYA ACS - 46387 WIRC 481 MS. RENU JAIN ACS - 46454 NIRC
415 MS. SNEHAL SHIVRAJ BOKKE ACS - 46388 WIRC 482 MS. SONALI JAIN ACS - 46455 NIRC
416 MR. PARESH PRABHAKAR BELULKAR ACS - 46389 WIRC 483 MS. SOHALE GUPTA ACS - 46456 NIRC
417 MS. SHRISHTI NAROTTAM GADIA ACS - 46390 WIRC 484 MS. ISHRAT GILL ACS - 46457 NIRC
418 MS. BHAVNA RAMESH FATNANI ACS - 46391 WIRC 485 MR. VAIBHAV GUPTA ACS - 46458 NIRC
419 MR. BHARGAV SAMIR VYAS ACS - 46392 WIRC 486 MS. CHANCHAL GROVER ACS - 46459 NIRC
420 MS. BHUMIKA VIJAY KUMAR PUNJABI ACS - 46393 WIRC 487 MS. TRIPTI ARORA ACS - 46460 NIRC
421 MS. BINITA MAYUR PATEL ACS - 46394 WIRC 488 MS. TANUSHREE JAIN ACS - 46461 NIRC
422 MS. SRISHTI SONI ACS - 46395 WIRC 489 MS. PRIYANKA RANI ACS - 46462 NIRC
423 MR. ISHAN VINOD TAKALKAR ACS - 46396 WIRC 490 MS. RAMA SHARMA ACS - 46463 NIRC
424 MS. BHALALA KHUSHBOO AMITKUMAR ACS - 46397 WIRC 491 MR. GOPAL DUTTA ACS - 46464 EIRC
425 MS. PRIYA VIJAY BHAGAT ACS - 46398 WIRC 492 MS. HARSHIKA AGRAWAL ACS - 46465 NIRC
426 MR. SURENDRA KUMAR ACS - 46399 NIRC 493 MR. VINEET KUMAR ACS - 46466 NIRC
427 MR. SHANKAR S ACS - 46400 SIRC 494 MS. NEETU JOGANI ACS - 46467 NIRC
428 MR. JYOTI PRAKASH DAS ACS - 46401 WIRC 495 MS. SRILAKSHMI BALACHANDRAN ACS - 46468 SIRC
429 MR. M ASIR RAJA SELVAN ACS - 46402 SIRC 496 MS. PREETHI S ACS - 46469 SIRC
430 MR. KUMAR N ACS - 46403 SIRC 497 MR. K NARESH KUMAR ACS - 46470 SIRC
431 MR. AMIT SHARMA ACS - 46404 EIRC 498 MS. ASWATHY RADHAKRISHNAN ACS - 46471 SIRC
432 MR. NEVIL CHARU AVLANI ACS - 46405 WIRC 499 MS. A S SUPRIYA ACS - 46472 SIRC
433 MS. TARVEEN KAUR BEDI ACS - 46406 NIRC 500 MS. P JAGADEESWARI ACS - 46473 SIRC
434 MS. SONAL ARVIND VAIDYA ACS - 46407 WIRC 501 MS. PILLI INDRAJA ACS - 46474 SIRC
435 MS. ARPITA DEBASINSH MITRA ACS - 46408 WIRC 502 MR. SIVA KUMAR CHANDALURI ACS - 46475 SIRC
436 MS. VIJAYLAXMI KEDIA ACS - 46409 EIRC 503 MR. RAJENDRAN NAIR S ACS - 46476 SIRC
437 MS. RITA JAGANANI ACS - 46410 NIRC 504 MR. THADI PRAKUL ACS - 46477 SIRC
438 MR. HEMANT KUMAR ACS - 46411 NIRC 505 MS. RADHIKA RADHAKRISHNAN C R ACS - 46478 SIRC
439 MS. RUCHI VERMA ACS - 46412 NIRC 506 MS. MANISHA SHANKAR CHINDARKAR ACS - 46479 WIRC
440 MS. REETIKA AGARWAL ACS - 46413 WIRC 507 MR. PRASHANT BALASAHEB GAIKWAD ACS - 46480 WIRC
441 MS. NIHARIKA GUPTA ACS - 46414 NIRC 508 MS. DAMINI DALAL ACS - 46481 WIRC
442 MS. PRITI CHHABRA ACS - 46415 SIRC 509 MR. KETAV PRADEEP PIPALIYA ACS - 46482 WIRC
443 MS. ARATHI S ACS - 46416 SIRC 510 MR. MANOJ KUMAR SHIVPRASAD JI KALANI ACS - 46483 WIRC
444 MR. CECIL SIMON ACS - 46417 SIRC 511 MR. LAXMAN SHANKAR GAIKWAD ACS - 46484 WIRC
445 MS. NAMAN VASUDEV PANDYA ACS - 46418 WIRC 512 MR. ADITYA SANJAY JOSHI ACS - 46485 WIRC
446 MS. TEENA RATHI ACS - 46419 NIRC 513 MR. NIKHILRAJIV JOGLEKAR ACS - 46486 WIRC
447 MS. NIDA BASHIR KHOT ACS - 46420 WIRC 514 MS. RAVINA DEEPAK ATHWANI ACS - 46487 WIRC
448 MS. SHARVARI MAHESH KAMAT ACS - 46421 WIRC 515 MR. JIGAR KANAKCHANDRA TRIVEDI ACS - 46488 WIRC

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516 MS. RADHIKA VIVEK JOSHI ACS - 46489 WIRC 583 MS. GUNJAN SINGHI ACS - 46556 EIRC
517 MS. RASHI AGRAWAL ACS - 46490 WIRC 584 MR. SUMIT JAIN ACS - 46557 EIRC
518 MS. SUZETTE RUTH PEREIRA ACS - 46491 WIRC 585 MR. SOURABH CHITLANGIA ACS - 46558 EIRC
519 MS. DHARA BHARAT UDESHI ACS - 46492 WIRC 586 MS. SNEHA MURARKA ACS - 46559 EIRC
520 MR. RAI ANAND JAYPRAKASH ACS - 46493 WIRC 587 MS. KIRTY AGARWAL ACS - 46560 EIRC
521 MR. CHENNA KESAVA CHEBROLU ACS - 46494 SIRC 588 MS. ANKITA PAREEK ACS - 46561 EIRC
522 MR. SANTOSH KUMAR JAIN ACS - 46495 SIRC 589 MS. KUNIKA CHAINANI ACS - 46562 NIRC
523 MS. MEENAKSHI ACS - 46496 NIRC 590 MR. PRATHAM KHURANA ACS - 46563 NIRC
524 MS. PRASHASTI TRIPATHI ACS - 46497 NIRC 591 MS. MAHIMA AGRAWAL ACS - 46564 NIRC
525 MS. JEYA PACKIAMANI ACS - 46498 SIRC 592 MS. AVINASH KAUR ACS - 46565 NIRC
526 MS. VAISHNAVI SUBRAMANIA RAJA ACS - 46499 SIRC 593 MS. JYOTI RANI ACS - 46566 NIRC
527 MS. KAMIYA ACS - 46500 NIRC 594 MS. HIMANI ACS - 46567 NIRC
528 MS. SHEETAL SANJAY BRAHMBHATT ACS - 46501 WIRC 595 MR. KAPIL KUKREJA ACS - 46568 NIRC
529 MS. BHAWNA GUPTA ACS - 46502 EIRC 596 MR. AMIT KUMAR KATHURIA ACS - 46569 NIRC
530 MS. CHETNA SOOD ACS - 46503 NIRC 597 MS. KANIKA GOEL ACS - 46570 NIRC
531 MS. SWATI MAHESHWARI ACS - 46504 NIRC 598 MS. NEHA TAHIR ACS - 46571 NIRC
532 MR. RAJAT KUMAR GOYAL ACS - 46505 NIRC 599 MS. NEHA VERMA ACS - 46572 NIRC
533 MR. SAIPRASATH ACS - 46506 SIRC 600 MS. SHIKHA NIRWAL ACS - 46573 NIRC
534 MR. P BALASUBRAMANIAN ACS - 46507 SIRC 601 MS. TANISHA GERA ACS - 46574 NIRC
535 MR. SHINUMON K S ACS - 46508 SIRC 602 MR. SAURABH KUMAR GOYAL ACS - 46575 NIRC
536 MS. ANU GOPI ACS - 46509 SIRC 603 MS. SHRUTI VERMA ACS - 46576 NIRC
537 MS. RUBY MISHRA ACS - 46510 WIRC 604 MS. KAMLA CHOUDHARY ACS - 46577 NIRC
538 MR. BALAJI MAHADEV VYAVAHARE ACS - 46511 WIRC 605 MS. PALLAVI CHHABRA ACS - 46578 NIRC
539 MR. JINESH HIRENBHAI PAREKH ACS - 46512 WIRC 606 MR. MOHIT SINGLA ACS - 46579 NIRC
540 MR. THARU RAJESH LAXMAN ACS - 46513 WIRC 607 MS. ABHISHREE VAIJAPURKAR ACS - 46580 NIRC
541 MR. KRISHNA MOHAN TP KURPAD ACS - 46514 SIRC 608 MS. SAMRIDHI AGARWAL ACS - 46581 NIRC
542 MR. MANOJ KUMAR YADAV ACS - 46515 WIRC 609 MS. MANEPALLI MANISHA ACS - 46582 SIRC
543 MS. DEEPIKA KAMLESH TODI ACS - 46516 WIRC 610 MR. SHANKARANARAYANAN V ACS - 46583 SIRC
544 MR. JOGAJYOTI PRADHAN ACS - 46517 EIRC 611 MS. ADIMULAM KALA ACS - 46584 SIRC
545 MS. ARUNITA CHOUDHURY ACS - 46518 EIRC 612 MR. GUVVALA BABU REDDY ACS - 46585 SIRC
546 MS. CHANCHAL GOYAL ACS - 46519 EIRC 613 MS. SURUCHI JAIN V ACS - 46586 SIRC
547 MR. MANISH LOYALKA ACS - 46520 EIRC 614 MS. MARIYAM SHAFFANA R ACS - 46587 SIRC
548 MS. NEHA DAMANI ACS - 46521 EIRC 615 MR. VIJU VINCENT K ACS - 46588 SIRC
549 MR. ANKUR SOMANI ACS - 46522 NIRC 616 MS. SHREYA K ACS - 46589 SIRC
550 MR. HIMANSHU MAHENDRU ACS - 46523 NIRC 617 MR. SANDEEP BALU SHEDBALE ACS - 46590 WIRC
551 MS. APOORVA MEHTA ACS - 46524 NIRC 618 MS. MANISHA SONI ACS - 46591 WIRC
552 MS. BHANVI MANCHANDA ACS - 46525 NIRC 619 MS. ADITI DIVYESHKUMAR BHAVSAR ACS - 46592 WIRC
553 MR. LALIT MOHAN ACS - 46526 NIRC 620 MS. SMRUTI SUDHAKAR DEHERKAR ACS - 46593 WIRC
554 MS. SONAM KHARBANDA ACS - 46527 NIRC 621 MS. MEHA BHAGIRATH MURARKA ACS - 46594 WIRC
555 MS. SURBHI SAXENA ACS - 46528 NIRC 622 MS. SWATI RAJUBHAI THAKREL ACS - 46595 WIRC
556 MS. SAAXSHI KOTHARI ACS - 46529 NIRC 623 MS. BHAKTI SANJAY WAZARKAR ACS - 46596 WIRC
557 MR. SUNIL MANGLA ACS - 46530 NIRC 624 MS. ADITI AJIT BHIDE ACS - 46597 WIRC
558 MS. MEENU KHANDELWAL ACS - 46531 NIRC 625 MS. RASHMI SHRINIWAS MALU ACS - 46598 WIRC
559 MR. AMAN JAIN ACS - 46532 NIRC 626 MS. DIMPY MUKUND THAKKAR ACS - 46599 WIRC
560 MR. ANKUSH KUMAR GUPTA ACS - 46533 NIRC 627 MS. NAINA RAJAT KUMAR KANAGAT ACS - 46600 WIRC
561 MR. GANDHARV KHANDELWAL ACS - 46534 NIRC 628 MS. HRUCHA MILIND DHAMDHERE ACS - 46601 WIRC
562 MS. JYOTI SHARMA ACS - 46535 NIRC 629 MS. SHIVANI KAMLESH SHAH ACS - 46602 WIRC
563 MR. NARESH KUMAR PUTREVU ACS - 46536 SIRC 630 MS. CHHAYA LAKHMANI ACS - 46603 WIRC
564 MS. SRIDEVI SRINIVASAN ACS - 46537 SIRC 631 MR. SUMIT SAHGAL ACS - 46604 EIRC
565 MS. SHWETA SUBRAMANIAN ACS - 46538 WIRC 632 MR. SUMIT SONI ACS - 46605 EIRC
566 MRS. SWATI KSHITIJ DHEDIA ACS - 46539 WIRC 633 MS. EKTA KHERIA ACS - 46606 EIRC
567 MR. ROHIT JAGDISH ASRANI ACS - 46540 WIRC 634 MR. RAGHAVENDRA HERLE ACS - 46607 SIRC
568 MS. CHAITALI MUKESHKUMAR PATEL ACS - 46541 WIRC 635 MR. PRANAV MARU ACS - 46608 WIRC
569 MR. ANKITKUMAR LAVJIBHAI TANK ACS - 46542 WIRC 636 MR. HARDIK RAJNIKANT SHAH ACS - 46609 WIRC
570 MS. ZARANA PANKAJ SONI ACS - 46543 WIRC 637 MR. ANIKET ABHILASH KHADILKAR ACS - 46610 WIRC
571 MS. URAVASHI DRAVENDRA KHANNA ACS - 46544 WIRC 638 MR. JUGAL MUKESH BHAI VAZIR ACS - 46611 WIRC
572 MR. JITENDRA KUMAR DAYAMA ACS - 46545 NIRC 639 MR. SANDEEP VERMA ACS - 46612 EIRC
573 MR. SANJAY JHINGAN ACS - 46546 NIRC 640 MR. DIPROVAH GHOSH ACS - 46613 EIRC
574 MR. ANIL SINGH NEGI ACS - 46547 NIRC 641 MR. GAURAV KUMAR CHAUDHARY ACS - 46614 EIRC
575 MS. BHANVI CHOUDHARY ACS - 46548 NIRC 642 MS. NIDHI LOHARUKA ACS - 46615 EIRC
576 MS. BARBIE SAURABH SINGH ACS - 46549 WIRC 643 MS. KANIKA BAID ACS - 46616 EIRC
577 MS. DEEPIKA KHUBSINGH RAIKWAR ACS - 46550 WIRC 644 MS. SHILPA BAHETI ACS - 46617 EIRC
578 MS. UDETI SUNIL GAJJAR ACS - 46551 WIRC 645 MS. APARNA KOTHARI ACS - 46618 EIRC
579 MS. MANSI UPENDRA MANIAR ACS - 46552 WIRC 646 MS. SHIBOTOSH DUTTA CHOWDHURY ACS - 46619 EIRC
580 MR. SAURABH ARVIND KHANORKAR ACS - 46553 WIRC 647 MR. ARUN KUMAR ACS - 46620 NIRC
581 MS. SWATI GIDRA ACS - 46554 EIRC 648 MR. ASIM KUMAR MANDAL ACS - 46621 NIRC
582 MS. CHINKY AGARWAL ACS - 46555 EIRC 649 MR. RAJESH ACS - 46622 NIRC

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650 MR. ARPIT BASLAS ACS - 46623 NIRC 718 MS. LAJJA MANOJ KUMAR MODHA ACS - 46691 WIRC
651 MS. RAVEENA GAUTAM ACS - 46624 NIRC 719 MS. K LAKSHMI ACS - 46692 SIRC
652 MS. SWATI TIWARI ACS - 46625 NIRC 720 MS. JAMBURI SHAILAJA ACS - 46693 SIRC
653 MS. KHUSHBU GUPTA ACS - 46626 NIRC 721 MS. [Link] LAKSHMI ACS - 46694 SIRC
654 MS. DAKSHITA GARG ACS - 46627 NIRC 722 MR. ARUN CHIMANLAL NILE ACS - 46695 WIRC
655 MS. SHRADHA SHARMA ACS - 46628 NIRC 723 MS. PRIYANKA VITTHAL MUNDRA ACS - 46696 WIRC
656 MR. VINOD SINGH ACS - 46629 NIRC 724 MR. PANKAJ RATHI ACS - 46697 NIRC
657 MR. HARIOM ACS - 46630 NIRC 725 MR. KUSH KUMAR ACS - 46698 NIRC
658 MR. HARVINDER SINGH ACS - 46631 NIRC 726 MR. MEETESH GIRISHBHAI SHIROYA ACS - 46699 WIRC
659 MS. PAYAL AGGARWAL ACS - 46632 NIRC 727 MR. SUALEHEEN ACS - 46700 NIRC
660 MS. KANIKA BHATIA ACS - 46633 NIRC 728 MS. KARTIKA KANKARIYA ACS - 46701 NIRC
661 MS. PRATIMA KUMARI SINGH ACS - 46634 NIRC 729 MS. BABY MARIA SHARON ACS - 46702 SIRC
662 MR. JATIN BAJAJ ACS - 46635 NIRC 730 MR. MAULIK JAYENDRAKUMAR MODI ACS - 46703 WIRC
663 MS. NISHA SINGH ACS - 46636 NIRC 731 MS. DUVVURI VENKATA PADMAJA ACS - 46704 SIRC
664 MS. PARUL SETHI ACS - 46637 NIRC 732 MR. KAUSHIK NIRANJANLAL GOTHWAL ACS - 46705 WIRC
665 MS. SHIVANGI MATHUR ACS - 46638 NIRC 733 MR. SANJAY SADASHIV NAVLE ACS - 46706 WIRC
666 MS. SADHNA SHARMA ACS - 46639 NIRC 734 MS. ANURADHA RAMAKANT BELEKAR ACS - 46707 WIRC
667 MR. SUSHANT BHALLA ACS - 46640 NIRC 735 MS. RIMA HEMCHANDRA PATIL ACS - 46708 WIRC
668 MR. KARAN SINGH ACS - 46641 NIRC 736 MS. ADITI GARODIA ACS - 46709 EIRC
669 MS. RITIKA AHUJA ACS - 46642 NIRC 737 MR. RAHUL VERMA ACS - 46710 NIRC
670 MS. NEHA MITTAL ACS - 46643 NIRC 738 MS. MANISHA GAHLAN ACS - 46711 NIRC
671 MS. STUTI TANEJA ACS - 46644 NIRC 739 MR. RANJEET ROY ACS - 46712 NIRC
672 MR. AVIRAL BHARGAVA ACS - 46645 NIRC 740 MS. AANCHAL PRABHAKAR ACS - 46713 NIRC
673 MR. MOHIT SONI ACS - 46646 NIRC 741 MR. MAHESH BAWGE ACS - 46714 SIRC
674 MR. GAURAV SHAH ACS - 46647 NIRC 742 MS. REETU ACS - 46715 NIRC
675 MS. TANISHA SHARMA ACS - 46648 NIRC 743 MS. NEHA PAHWA ACS - 46716 NIRC
676 MS. NEETIKA MATHUR ACS - 46649 NIRC 744 MR. RAGHAV TRIPATHI ACS - 46717 NIRC
677 MS. ISHITA SINHA ACS - 46650 NIRC 745 MS. RAVEENA ACS - 46718 NIRC
678 MR. PRAMOD KALRA ACS - 46651 NIRC 746 MS. SHEETAL ACS - 46719 NIRC
679 MS. RITU DHYANI ACS - 46652 NIRC 747 MR. AMIT MOHTA ACS - 46720 NIRC
680 MS. ANSHIMA ACS - 46653 NIRC 748 MS. NEHA SHUKLA ACS - 46721 NIRC
681 MS. RICHA BHATIA ACS - 46654 NIRC 749 MS. MALVIKA JAGANT ACS - 46722 NIRC
682 MS. NEHA DUBEY ACS - 46655 NIRC 750 MR. APOORV SRIVASTAV ACS - 46723 NIRC
683 MS. SHIKHA MUNJAL ACS - 46656 NIRC 751 MR. BINNY CHOPRA ACS - 46724 NIRC
684 MS. SAKSHI MANGLANI ACS - 46657 NIRC 752 MS. RICHA AGARWAL ACS - 46725 NIRC
685 MR. VINAY ANAND ACS - 46658 NIRC 753 MS. MEENU PAPREJA ACS - 46726 NIRC
686 MS. MEHAK NAYYAR ACS - 46659 NIRC 754 MS. AAKANSHA DHINGRA ACS - 46727 NIRC
687 MR. SHOBHIT KUMAR KUSHWAHA ACS - 46660 NIRC 755 MS. SHILPA B M ACS - 46728 SIRC
688 MR. JITESH SADHWANI ACS - 46661 NIRC 756 MR. SHREYAS VILAS PONKSHE ACS - 46729 WIRC
689 MS. RUPA BISHT ACS - 46662 NIRC 757 MS. VIDYADEVI VISHWANATH PATTANAYAK ACS - 46730 WIRC
690 MS. KIRTI SHARMA ACS - 46663 NIRC 758 MS. KOTHARI MITTALBEN VAIKUNTHBHAI ACS - 46731 WIRC
691 MS. ASHU DHIMAN ACS - 46664 NIRC 759 MR. VARUN RAJNIKANT BATRA ACS - 46732 WIRC
692 MR. NIKHIL SINGH ACS - 46665 NIRC 760 MR. SAGAR RAJENDRA MODVE ACS - 46733 WIRC
693 MR. MAYANK PRATAP SINGH ACS - 46666 NIRC 761 MR. RAHUL KHARBANDA ACS - 46734 NIRC
694 MS. AARTI JAIN ACS - 46667 NIRC 762 MS. SUNITA SHARMA ACS - 46735 NIRC
695 MS. TANVI SARAF ACS - 46668 NIRC 763 MS. SHUBHI NARESH AGRAWAL ACS - 46736 WIRC
696 MS. NEELAM JAIN ACS - 46669 NIRC 764 MR. SATYAVEER ACS - 46737 NIRC
697 MS. KAJAL JAIN ACS - 46670 NIRC 765 MS. EKTA BHARGAVA ACS - 46738 NIRC
698 MS. SHIKHA AGARWAL ACS - 46671 NIRC 766 MR. HEMANT KUMAR ACS - 46739 NIRC
699 MR. LOHITH K N ACS - 46672 SIRC 767 MR. GOPAL ACS - 46740 NIRC
700 MS. B TARUNI ACS - 46673 SIRC 768 MR. PRAVEEN KUMAR ACS - 46741 NIRC
701 MS. SAPNA JAIN ACS - 46674 SIRC 769 MS. DEEPA SHREE PARIHAR ACS - 46742 NIRC
702 MS. DEVYANI RAJUBHAI KORPE ACS - 46675 WIRC 770 MR. ANKIT DAGA ACS - 46743 NIRC
703 MS. SUPRIYA VIJAY UTEKAR ACS - 46676 WIRC 771 MR. ADIVENKATARAMA RAJANEDI ACS - 46744 SIRC
704 MR. SWAPNIL KIRAN THATTE ACS - 46677 WIRC 772 MS. PRIYANKA I MISSER ACS - 46745 SIRC
705 MR. MUKESH BHAWAR LAL UNECHA ACS - 46678 WIRC 773 MS. POOJA KETAN SHAH ACS - 46746 WIRC
706 MS. SHAH DARSHITA RAMESHBHAI ACS - 46679 WIRC 774 MR. DIPEN ASHIT DALAL ACS - 46747 WIRC
707 MS. MEENAKSHI MISHRA ACS - 46680 NIRC 775 MS. BHASWATI ROY CHOUDHURY ACS - 46748 EIRC
708 MR. NEELABH KAUSHIK ACS - 46681 WIRC 776 MS. SUSHMITA CHAKRABORTY ACS - 46749 EIRC
709 MS. NEELAM MOHANLAL GURBAXANI ACS - 46682 WIRC 777 MS. SWETA RAMPURIA ACS - 46750 EIRC
710 MR. GANDHI KARAN BANKIMBHAI ACS - 46683 WIRC 778 MS. NIHARIKA GUPTA ACS - 46751 EIRC
711 MS. HETAL TEJASH LODHIYA ACS - 46684 WIRC 779 MS. PUJA SARAF ACS - 46752 EIRC
712 MR. SMIT ANADAJI TANK ACS - 46685 WIRC 780 MS. KHUSBOO PRASAD ACS - 46753 EIRC
713 MR. MITHAIWALA RAHUL SURENDRABHAI ACS - 46686 WIRC 781 MR. ANKUR AWASTHI ACS - 46754 NIRC
714 MS. RASHMI JAGDISHBHAI PATEL ACS - 46687 WIRC 782 MS. SWATI GARG ACS - 46755 NIRC
715 MR. NITINBHAI JASHUBHAI MISTRY ACS - 46688 WIRC 783 MS. TARA RAWAT ACS - 46756 NIRC
716 MS. PALAK AJAY THAKKAR ACS - 46689 WIRC 784 MS. YASHIKA ARORA ACS - 46757 NIRC
717 MS. SONIA OMPRAKASH CHHAJER ACS - 46690 WIRC 785 MR. MUKESH KUMAR SHARMA ACS - 46758 NIRC

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NEWS FROM THE INSTITUTE
786 MR. RISUL AGARWAL ACS - 46759 NIRC 7 A 3960 A S CASTELINO WIRC
787 MS. VANDANA JHINJHERIA ACS - 46760 NIRC 8 A 29671 RENUKA M C SIRC
788 MR. ASHUTOSH SHUKLA ACS - 46761 NIRC 9 A 12198 SUBRATA KUMAR NAG SIRC
789 MS. KOMAL ANAND ACS - 46762 NIRC 10 A 12906 RAJESH SOOD NIRC
790 MR. TARUN KUMAR ARORA ACS - 46763 NIRC 11 A 19225 MADHURI METKAR DALAL WIRC
791 MS. JYOTI GARG ACS - 46764 NIRC 12 A 19966 RITESH CHOUDHRY NIRC
792 MR. RAHUL BHATIA ACS - 46765 NIRC
13 A 37302 MADHUR SINGH NIRC
793 MS. POOJA SONI ACS - 46766 NIRC
14 A 31578 PRIYANKA SHARMA WIRC
794 MS. PRIYANKA BANGARI ACS - 46767 NIRC
795 MS. JUHI MADAN ACS - 46768 NIRC 15 A 21778 POONAM AGARWAL EIRC
796 MS. DIVITA SAHAI ACS - 46769 NIRC 16 A 36160 KHUSHBOO VINOD KUMAR SHAH WIRC
797 MR. JASPREET SINGH MAKKER ACS - 46770 NIRC 17 A 24710 MONICA PASRICHA SIRC
798 MR. AJAY AGRAWAL ACS - 46771 NIRC 18 F 3331 MANABENDRA SARMA DEVA EIRC
799 MS. SONI ACS - 46772 NIRC 19 A 15773 S NANDAKUMARAN SIRC
800 MR. SACHIN MAVI ACS - 46773 NIRC 20 A 27075 AKSHAY SATYAVIJAY RANJANIKAR WIRC
801 MS. BHARTI KASHYAP ACS - 46774 NIRC 21 A 22370 VIMAL TANK NIRC
802 MS. GARIMA GAUTAM ACS - 46775 NIRC 22 A 38509 KANIKA NIRC
803 MS. SONAL TANEJA ACS - 46776 NIRC 23 A 30706 AZEEM TARIQ KHAN WIRC
804 MS. ADITI AGARWAL ACS - 46777 NIRC 24 A 37696 RICHA BHOLA NIRC
805 MS. NIMISHA DADHICH ACS - 46778 NIRC 25 A 11133 RAJIVE BANSAL NIRC
806 MS. MEGHA SINGH ACS - 46779 NIRC
26 A 34504 SUMAN BHANDARI NIRC
807 MS. KOMAL SARDA ACS - 46780 NIRC
27 A 25100 SWATI SHINGHAL NIRC
808 MS. BHARTI CHUGH ACS - 46781 NIRC
809 MS. PURNIMA BHASIN ACS - 46782 NIRC 28 A 33760 TWINKLE SALUJA NIRC
810 MS. DISHA MAHESHWARI ACS - 46783 NIRC 29 A 31495 MEGHANA EKANATH KASHTE WIRC
811 MR. AMAN GUPTA ACS - 46784 NIRC 30 A 12442 G MUTHUKRISHNAN SIRC
812 MR. YOGI SRIVASTAVA ACS - 46785 NIRC 31 A 15765 S PADMANABHAN SIRC
813 MS. RICHA SHARMA ACS - 46786 NIRC 32 A 33000 PRATHEMESH YESHWANT APTE WIRC
814 MS. DISHA SAXENA ACS - 46787 NIRC 33 A 25410 KAJAL GURNANI NIRC
815 MS. ELIZABETH MANUEL ACS - 46788 SIRC 34 A 38669 GHANSHYAM BINANI EIRC
816 MR. CHANDRA SHEKAR SRIRAMULU ACS - 46789 SIRC 35 A 30820 ARCHANA NIRC
817 MR. RAVINDRA UTTURE ACS - 46790 SIRC 36 A 7729 TARSEM SINGH F/NIRC
818 MR. DEEPAK KUMAR SAVALGE ACS - 46791 WIRC 37 A 5378 MUHAMMAD R MULLICK F/WIRC
819 MR. VISHAL BASTIMAL JAIN ACS - 46792 WIRC 38 A 34173 ANSHU BHANDARI NIRC
820 MS. KHUSHBOO SIDDHARTH SHAH ACS - 46793 WIRC
39 A 26940 SAI VINAYAK KHATRI WIRC
821 MR. KRUNAL RAJENDRA KUMAR PUROHIT ACS - 46794 WIRC
40 A 32466 LALITASHARAN RAMESHCHANDRA PATHAK WIRC
822 MS. DHARA MUKESH LAKHANI ACS - 46795 WIRC
823 MS. SONAL LALJI NISAR ACS - 46796 WIRC 41 A 12960 SUSHIL KUMAR RATHI EIRC
824 MS. ESHA PRAMOD KULKARNI ACS - 46797 WIRC 42 A 9192 T S JAGADHARINI SIRC
825 MS. DEVANSHI SHAILESH PAREKH ACS - 46798 WIRC 43 F 3217 DEEPAK JAGDISH ACHARYA F/WIRC
826 MS. DARSHNA RAJESH NEGANDHI ACS - 46799 WIRC 44 F 1496 SUNDRAN KATHIRESAN WIRC
827 MR. HEMANSHU ROHIT KUMAR UPADHYAY ACS - 46800 WIRC 45 F 4419 BIRESWAR CHAKRABORTY EIRC
828 MR. SHIBLEE SHABBIR KHAN ACS - 46801 WIRC 46 A 14257 G RAJESH WIRC
829 MR. PARTH MURALIDHARAN NAIR ACS - 46802 WIRC 47 A 17611 ANJU JAIN F/EIRC
830 MR. SULABH SINGH PARIHAR ACS - 46803 WIRC 48 A 33788 SNEHLATA NIRC
831 MS. ASHIKA ANAND SHETTY ACS - 46804 WIRC 49 A 37004 AARTI MAHENDRA KUMAR JAIN WIRC
832 MR. UMESHKUMAR SUDHAKAR VANI ACS - 46805 WIRC 50 A 8855 ARUN VIRMANI NIRC
833 MR. BHAVIN JAGDISHBHAI WAGHELA ACS - 46806 WIRC 51 A 26911 KIRTI SHARMA NIRC
834 MR. JIGAR KANTILAL JAIN ACS - 46807 WIRC
52 A 29681 KANIKA KHANDELWAL WIRC
835 MS. ISHITA PRAVIN SHAH ACS - 46808 WIRC
53 A 32025 KALAVATHI S SIRC
836 MS. DHWANI JAYESH SHAH ACS - 46809 WIRC
837 MR. VRUSHANG PARESHBHAI SHAH ACS - 46810 WIRC 54 A 13460 C R LAKSHMAN F/WIRC
838 MS. KHUSHBOO KAMAL DHANUKA ACS - 46811 WIRC 55 F 1253 A P JAIN NIRC
839 MS. ANKITA VINAYAK JOSHI ACS - 46812 WIRC 56 A 9715 V KOTHANDARAMAN WIRC
840 MR. AMIT SINGH ACS - 46813 NIRC 57 A 25422 DIPALI MAYUR PAREKH WIRC
841 MR. SAMIR DOHA ACS - 46814 NIRC 58 A 16072 SAMTA NIRC
842 MR. SONTIMALLI ESWAR REDDY ACS - 46815 SIRC 59 A 23284 VRUSHALI CHINMAY OAK WIRC
RESTORED* 60 A 7836 DINESH KUMAR SARRAF NIRC
S. A/F MEM. MEM. NAME PLACE 61 A 14006 BHAGWANDAS N THAKKAR WIRC
NO. NO. 62 A 8969 KRIPA DEVI BHAT SIRC
1 A 25122 ABHILASHA TYAGI NIRC 63 A 10719 MANOJ KUMAR JAIN EIRC
2 A 21195 RAJ KUMAR MANOCHA NIRC 64 A 31413 V K HARISH BABU SIRC
3 A 16682 AMIT SARAN NIRC 65 A 26959 NITHYA KAMARAJ SIRC
4 A 26098 CHESHTA NARANG NIRC 66 A 12532 MALINI KAPOOR NIRC
5 A 18293 REENA SHARDA WIRC 67 A 17725 DEEPESH PATORIA WIRC
6 A 27902 VISHAKHA PRAKASH BRAHMANKAR SIRC 68 A 7673 S K SHARMA WIRC
* RESTORED FROM 1/6/2016 TO 31/7/2016

136 I
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 NEWS FROM THE INSTITUTE
CERTIFICATE OF PRACTICE
ISSUED*
62
63
64
MR. HIMANSHU AGARWAL
MS. DEEPA
MR. MEHTA DEVESH UPENDRA
ACS - 45355
ACS - 45409
ACS - 45544
NIRC
NIRC
WIRC
16647
16648
16649
SI. NAME MEMBNO REGION COP 65 MS. NAGASHRUTI SHIVANAND LAKKIMARAD ACS - 45681 SIRC 16650
NO. NO. 66 MS. MITALI CHAKRABORTY ACS - 45713 WIRC 16651
1 SH. PUTTIGE SAMEERDAS ACS - 6365 SIRC 16586 67 MS. MEGHNA PIPLANI ACS - 45447 NIRC 16652
2 MS. POONAM GUPTA FCS - 8599 NIRC 16587 68 MS. SAPNA JAIN ACS - 28869 NIRC 16653
3 SH. NAVEEN KUMAR SHENOY ACS - 10817 SIRC 16588 69 MS. NEHA BANSAL ACS - 38848 NIRC 16654
4 SH. RAJKISHORE RAM ACS - 22447 EIRC 16589 70 MR. ROHIT RAMACHANDRAN ACS - 45485 SIRC 16655
5 MS. NISHA PATWARI ACS - 23994 EIRC 16590 71 MR. CHETAN RAJGOPAL BHUTADA ACS - 45548 WIRC 16656
6 MRS. APARAJITA JOHARI FCS - 8787 NIRC 16591 72 MR. NEERAJ PURI ACS - 45591 NIRC 16657
7 MR. ABHISHEK JAIN ACS - 28201 NIRC 16592 73 MS. NISHA KISHU GIDWANI ACS - 45729 WIRC 16658
8 MR. RAMESH KASAPURA CHOWDAIAH ACS - 29079 SIRC 16593 74 MR. MARATH SURESH BABU AMAL ACS - 45743 SIRC 16659
9 SH. KIRANA KULIHITALU RAMACHANDRA ACS - 30325 SIRC 16594 75 SH. ANDE MOHAN RAMI REDDY FCS - 2147 SIRC 16660
10 MR. ARCHIT AGARWAL ACS - 30928 NIRC 16595 76 MS. MADHUMITA ROY FCS - 5155 WIRC 16661
11 MS. PRAKRITI MEHROTRA ACS - 33280 WIRC 16596 77 SH. V S SATYAMOORTHY ACS - 4946 WIRC 16662
12 MS. KAVITA BARFA ACS - 38921 WIRC 16597 78 MS. PRERNA SINGHANIA ACS - 42432 EIRC 16663
13 MR. ANOOP KUMAR ACS - 41380 NIRC 16598 79 MR. DIPEN VIJAYKUMAR SHAH ACS - 43449 WIRC 16664
14 MR. RONAK BHARATBHAI LADHAWALA ACS - 41819 WIRC 16599 80 MR. SANDESHA ACS - 45480 SIRC 16665
15 MR. ABHISHEK GUPTA ACS - 43089 NIRC 16600 81 SH. BAL KISHAN OJHA FCS - 1955 NIRC 16666
16 MS. SWATI SANDEEP NIVALKAR ACS - 43815 WIRC 16601 82 SH. SANJAY KUMAR AGGARWAL FCS - 4059 NIRC 16667
17 MS. NIKITA AGARWAL ACS - 43941 EIRC 16602 83 SH. PUNIT KUMAR TRIVEDI FCS - 8682 NIRC 16668
18 MS. MONIKA JAIN ACS - 43991 EIRC 16603 84 MRS. MINU TULSIAN ACS - 24930 EIRC 16669
19 MS. AKANSHA GUPTA ACS - 45224 NIRC 16604 85 MR. KOSHAL AGARWAL ACS - 37508 EIRC 16670
20 MS. VAISHALI RISHABH UPADHYAY ACS - 45291 WIRC 16605 86 MS. AMBIKA SHARMA ACS - 37783 EIRC 16671
21 MS. RESHMA AGRAWAL ACS - 45317 WIRC 16606 87 MS. SHILPA AGARWAL ACS - 38815 EIRC 16672
22 MS. SHELLY GUPTA ACS - 45369 NIRC 16607 88 MR. ADITYA MOHAN KHANDELWAL ACS - 41187 EIRC 16673
23 MR. SANDEEP SINGH ACS - 45393 NIRC 16608 89 MS. KRUTIKA MAHESHWARI ACS - 43984 WIRC 16674
24 MS. MANISHA SONI ACS - 45396 NIRC 16609 90 MR. DINESH DEVICHANDJI LOHADE ACS - 44182 WIRC 16675
25 MS. PARIDHI PATNY ACS - 45399 WIRC 16610 91 MR. HIMANSHU YADAV ACS - 44654 NIRC 16676
26 MR. ANKITKUMAR NILESHBHAI THAKRAR ACS - 45563 WIRC 16611 92 MR. CHANDRASEKARAN KATHIRAVAN ACS - 45204 SIRC 16677
27 SH. GAJANAN DATTATRAYA BHAVSAR ACS - 12479 WIRC 16612 93 MS. AANCHAL BEDI ACS - 45290 WIRC 16678
28 MS. PURVASHI D. ADHVARYU ACS - 16234 WIRC 16613 94 MR. RUDHRU KRISHNA ACS - 45474 SIRC 16679
29 MR. MILAN MALIK ACS - 32559 NIRC 16614 95 MR. VINAY MANGAL AGRAWAL ACS - 45715 WIRC 16680
30 MR. BHARAT HASSANI ACS - 38724 NIRC 16615 96 MS. VIRAL KAUSTUBH JOSHI ACS - 45763 WIRC 16681
31 MS. HUMA M TAMATGAR ACS - 44303 SIRC 16616 97 MS. SNEHA CHOWDHURY ACS - 45774 EIRC 16682
32 MS. SHIVALI GUJELA ACS - 44603 NIRC 16617 98 MR. ASHISH GROVER ACS - 45821 NIRC 16683
33 MR. SANTHOSHKUMAR REDDY MEDA ACS - 45045 SIRC 16618 99 MR. KORATTIKKATIL DEEPAK ACS - 45823 SIRC 16684
34 MR. V CHANDRA SEKHAR PATNAIK ACS - 45479 SIRC 16619 100 SH. P V V RAGHAVAN ACS - 17313 WIRC 16685
35 MR. MIDHUNKUMAR ERUMPANATHU MADHU ACS - 45498 SIRC 16620 101 MS. SEETA VENKATRAMAN IYER ACS - 17489 WIRC 16686
36 MS. TARUNA KUMARI KHOKHAWAT ACS - 45592 NIRC 16621 102 MS. ZARNA DHANAL SODAGAR ACS - 23062 WIRC 16687
37 SH. YAYAVARAM SRINIWAS ARUN FCS - 6940 SIRC 16622 103 MS. NEHA JAIN ACS - 23417 NIRC 16688
38 SH. ARVIND HIRALAL GUPTA FCS - 7861 WIRC 16623 104 MS. HEMLATA DANGI ACS - 42855 NIRC 16689
39 SH. PAWAN KUMAR ACS - 4628 NIRC 16624 105 MR. NARENDER ACS - 43952 NIRC 16690
40 SH. GOPAL SHARMA ACS - 19384 EIRC 16625 106 MR. MILIND MANOHARRAO SATFALE ACS - 45270 WIRC 16691
41 MS ANITA JENA ACS - 21496 SIRC 16626 107 MR. RAHUL VIJAYKUMAR KABARA ACS - 45508 WIRC 16692
42 MS. CHESHTA NARANG ACS - 26098 NIRC 16627 108 MS. ANKIT NAGPAL ACS - 45798 NIRC 16693
43 MS. REEMA SACHDEVA ACS - 26673 NIRC 16628 109 MR. AMAR ANANDRAO PATIL ACS - 45835 WIRC 16694
44 MR. NIHIT SRIVASTAVA ACS - 29273 NIRC 16629 110 MR. VIKASH JOSHI ACS - 44269 EIRC 16695
45 MS. RUBI JHA ACS - 30884 WIRC 16630 111 MS. ANSU ELEZABETH THOMAS ACS - 21879 SIRC 16696
46 MR. MUKUL TYAGI ACS - 33949 NIRC 16631 112 MS. RASHMI GUPTA ACS - 25382 NIRC 16697
47 MS. ANKITA JAIN ACS - 34759 NIRC 16632 113 MS. KUSHMANJALI SHARMA ACS - 29483 NIRC 16698
48 MS. MADHU JAISWAL ACS - 37136 EIRC 16633 114 MR. ROHIT DILIP KUDTARKAR ACS - 28001 WIRC 16699
49 MR. RAHUL MALHOTRA ACS - 37641 NIRC 16634 115 MS. SWATI DHRUV AGGARWAL ACS - 37760 NIRC 16700
50 MR. ABHISHEK JAIN ACS - 37738 WIRC 16635 116 MS. KANIKA ACS - 38509 NIRC 16701
51 MS. ARADHANA GUPTA ACS - 38918 WIRC 16636 117 MR. SAMIR JAYESHBHAI MEHTA ACS - 42362 WIRC 16702
52 MR. CHANDER PRAKASH KARWA ACS - 41709 SIRC 16637 118 MS. PINKI SHARMA ACS - 44136 NIRC 16703
53 MR. RAVI SHANKAR SHARMA ACS - 42841 NIRC 16638 119 MR. DINESH SHARMA ACS - 44736 NIRC 16704
54 MS. NEHA JAIN ACS - 43489 EIRC 16639 120 MR. SAGAR MEHRA ACS - 44744 NIRC 16705
55 MS. RICHA KUMARI ACS - 44237 NIRC 16640 121 MS. SHWETA SINGH ACS - 44864 NIRC 16706
56 MS. NIRALI MUKESH PATEL ACS - 44520 WIRC 16641 122 MR. MUSAB DASTGIR SHAIKH ACS - 45255 WIRC 16707
57 MR. AJAY SHARMA ACS - 44649 NIRC 16642 123 MS. GAURI HAMANT GOKHALE ACS - 45512 WIRC 16708
58 MS. SARIKA AJAY GUPTA ACS - 44674 WIRC 16643 124 MS. SWATI JAIN ACS - 45674 NIRC 16709
59 MR. MANISH KUMAR ACS - 45049 NIRC 16644 125 MS. VINISHA JAIN ACS - 45739 WIRC 16710
60 MS. TRISHA AMAR ROOPCHANDANI ACS - 45099 WIRC 16645 126 MS. ANITHA GOPALA MENON ACS - 45825 SIRC 16711
61 MR. SHOBHIT TANDON ACS - 45353 NIRC 16646 127 MS. SHRADDHA VIVEK BHAGWAT ACS - 45836 WIRC 16712
128 MS. PRERNA JAIN ACS - 45908 NIRC 16713
* ISSUED DURING THE MONTH OF JUNE & JULY, 2016

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NEWS FROM THE INSTITUTE
129 MR. RAKESH HULIHALLI ACS - 45933 SIRC 16714 196 MR. SANTOSH KUMAR SENAPATI ACS - 43062 SIRC 16782
130 MR. DHARMARAJAN SENTHIL ACS - 45934 SIRC 16715 197 MS. RIPTA MUKHERJEE ACS - 43481 EIRC 16783
131 MR. MANIKIRAN RENDUCHINTALA ACS - 45969 SIRC 16716 198 MR. NARESHKUMAR SHANKARLAL TRIVEDI ACS - 43681 WIRC 16784
132 MS. PRIYANKA DINESH JAIN ACS - 26417 NIRC 16717 199 MS. RASHMI SHARMA ACS - 44108 NIRC 16785
133 MS. KRISHMA PRANAY KOTHARI ACS - 32284 WIRC 16718 200 MR. KUNAL SIPPY ACS - 44904 NIRC 16786
134 SH. ADARSH PAUL SINGH ACS - 8000 NIRC 16720 201 MS. AKSHI KATARIA ACS - 45202 NIRC 16787
135 SH. JAY NARAYAN NAIK ACS - 26297 WIRC 16721 202 MS. PRIYANKA GARG ACS - 45312 WIRC 16788
136 MS. NAZIA REHMAN ACS - 29226 NIRC 16722 203 MR. PRABIN K ACS - 45478 SIRC 16789
137 MS. ASHWINI RAHUL VARTAK ACS - 29463 WIRC 16723 204 MR. SACHIN KUMAR ACS - 45590 NIRC 16790
138 MR. AZEEM TARIQ KHAN ACS - 30706 WIRC 16724 205 MR. ADITYA SONI ACS - 45810 WIRC 16791
139 MR. ANAND KANKANI ACS - 36922 WIRC 16725 206 MS. ANKITA KAMLESH ACS - 45904 NIRC 16792
140 MS. PRIYA TIRTHANI ACS - 39552 WIRC 16726 207 MR. ANKIT KUMAR ACS - 45917 NIRC 16793
141 MS. DIVYA GUPTA ACS - 45062 NIRC 16727 208 MS. NEHA SHARMA ACS - 46040 NIRC 16794
142 MS. SHAHANA ISTAK KHAN ACS - 45259 WIRC 16728 209 SH RUPAK KUMAR SINHA FCS - 7947 NIRC 16795
143 MR. RAVINDER REDDY SURUKANTI ACS - 45501 SIRC 16729 210 SH. MADHAVAN M K FCS - 8408 SIRC 16796
144 MS. SNEHAL VILAS KAREKAR ACS - 45530 WIRC 16730 211 MS. SOWMYA R A PARASURAMAN FCS - 8431 SIRC 16797
145 MS. MAHUA SINGHA ACS - 45622 EIRC 16731 212 SH. RAJENDRA KR. CHOTIA ACS - 17841 EIRC 16798
146 MR. PRADEEP SHARMA ACS - 45867 EIRC 16732 213 SH. AMITAVA BANERJEE ACS - 21175 NIRC 16799
147 MR. NITIN KUMAR ACS - 45968 NIRC 16733 214 MS. KINJAL SATISH TRIVEDI ACS - 22010 WIRC 16800
148 SH. K VAIDYANATHAN FCS - 6726 SIRC 16734 215 MR. AKSHAYA KUMAR PRUSTY ACS - 37230 EIRC 16801
149 MS. SNEHA JAGDISH HOTCHANDANI ACS - 28769 WIRC 16735 216 MS. ANNIE JAIN ACS - 30903 SIRC 16802
150 MS. DISHA JIGAR PAREKH ACS - 29091 WIRC 16736 217 MR. RAHUL BHANUDAS SHINDE ACS - 32412 WIRC 16803
151 MS. SWATI AGARWAL ACS - 31723 WIRC 16737 218 MS. MUKTA SHARMA ACS - 32358 NIRC 16804
152 MS. ALKA JUGALKISHORE GATTANI ACS - 40269 WIRC 16738 219 MS. NUPUR MIMANI ACS - 37847 EIRC 16805
153 MS. URVI DEEPAK CHOKSI ACS - 40620 WIRC 16739 220 MR. VIJAY MAHENDRA YADAV ACS - 39251 WIRC 16806
154 MR. SASIKANTH VADDADI ACS - 41128 SIRC 16740 221 MS. AKSHARA PAREEK ACS - 41780 NIRC 16807
155 MR. VARUN GUPTA ACS - 41445 NIRC 16741 222 MS. MEENU BHOMIA ACS - 42439 EIRC 16808
156 MS. AKANSHA ACS - 41944 NIRC 16742 223 MS. MONA ACS - 43221 NIRC 16809
157 MS. SHANU GYANCHAND JAIN ACS - 42408 WIRC 16743 224 MR. DHEERAJKUMAR PANNALAL TIWARI ACS - 44510 WIRC 16810
158 MR. SACHIN ISHWAR BANAKAR ACS - 42801 SIRC 16744 225 MS. ANJALI GUPTA ACS - 44758 NIRC 16811
159 MS. NIKITA AGARWAL ACS - 43097 NIRC 16745 226 MS. SUVARNA SHREEKRUSHNA JOSHI ACS - 45141 WIRC 16812
160 MS. NUPUR SHARMA ACS - 43990 EIRC 16746 227 MR. PRABHAS SINGH ACS - 45753 NIRC 16813
161 MR. AZHAR ASSIM SHAIKH ACS - 45954 WIRC 16747 228 MR. SANDEEP KULKARNI ACS - 45860 SIRC 16814
162 SH DILIP KUMAR OJHA FCS - 7206 EIRC 16748 229 MR. MANJEET SINGH DHILLON ACS - 45866 NIRC 16815
163 SH. HARESH RAMNIKLAL KAPURIYA ACS - 26109 WIRC 16749 230 MS. VARSHA KISHAN CHOITHANI ACS - 45961 WIRC 16816
164 MR. ARPIT SURI ACS - 30095 NIRC 16750 231 MS. SHWETA PATHAK ACS - 46070 NIRC 16817
165 MS. GARVI SANJAY BHAI SHAH ACS - 42663 WIRC 16751 232 MR. ARANKAL SHIVAKUMAR GURUPADAPPA ACS - 46149 SIRC 16818
166 MR. MANISH KUMAR TRIPATHI ACS - 44292 NIRC 16752 233 MR. NARASIMHARAJU O R ACS - 46150 SIRC 16819
167 MS. DEEPIKA DADHEECH ACS - 45037 NIRC 16753 234 MR. SUNIL KUMAR KACHAM ACS - 46155 SIRC 16820
168 MS. KARISHMA JAIN ACS - 45059 WIRC 16754 235 MR. SAURABH KRISHNA PATHAK ACS - 46164 WIRC 16821
169 MS. NEELAM TARAWAT ACS - 45060 NIRC 16755 236 MR. GAURAV AGRAWAL ACS - 46173 WIRC 16822
170 MR. EMIL ALEX ACS - 45209 SIRC 16756 237 MR. VEERASH MYSORE JAGADISH ACS - 46222 SIRC 16823
171 MR. SHEKHAR PAREEK ACS - 45630 NIRC 16757 238 MR. SURESH CHANDRA NAINWAL ACS - 46253 NIRC 16824
172 MR. ARVIND KUMAR KUSHWAHA ACS - 45635 NIRC 16758 239 MS. NAMITA JAISWAL ACS - 40543 EIRC 16825
173 MR. SAGAR PARMANAND KHATRI ACS - 45728 WIRC 16759 240 MS. VISHAKHA MAHESH PHADKE ACS - 37675 WIRC 16826
174 MR. HARDIKKUMAR JAYANTILAL RATANI ACS - 45766 WIRC 16760 241 MS. PRIYANKA RAJENDRA BAJAJ ACS - 41409 WIRC 16827
175 MR. KUMAR GAUTAM ACS - 45780 EIRC 16761 242 SH. VIKRAM BHARAT KUMAR JOSHI ACS - 16149 WIRC 16828
176 MR. NITIN JAISWAL ACS - 45981 NIRC 16762 243 MS. MEENA CHOWDHARY ACS - 41084 EIRC 16829
177 MS. POOJA SONI ACS - 45801 NIRC 16763 244 MS. PURNIMA SHARMA FCS - 7706 NIRC 16830
178 MS. HARSHITA SAXENA ACS - 45932 NIRC 16764 245 MR. SUMIT KUMAR ACS - 46110 NIRC 16831
179 MS. SHARMILA PARAMBATT ACS - 42864 SIRC 16765 246 SH. DEEPAK KUMAR GOYAL ACS - 24424 NIRC 16832
180 MR. BALWANT SINGH ACS - 43702 EIRC 16766 247 SH. M PAREKH ACS - 4556 WIRC 16833
181 SH. VINOD H. KANKARIA ACS - 13190 WIRC 16767 248 SH. MAHEENATH ANANDA ACS - 4650 SIRC 16834
182 MS. MANISHA LATH ACS - 15614 EIRC 16768 249 SH. ARUN VIRMANI ACS - 8855 NIRC 16835
183 SH JITESH JOITARAM PATEL ACS - 20400 WIRC 16769 250 MS ANUSHA NARASIMHAN ACS - 20275 SIRC 16836
184 MRS. MONIKA GUJARWASIA ACS - 20731 WIRC 16770 251 SH. VIJAY A N S ACS - 22983 SIRC 16837
185 MR. JOBY MATHEW ACS - 24411 SIRC 16771 252 MRS. RIA KUNAL AHUJA ACS - 29556 WIRC 16838
186 MS. JAYARAMAN BHUVANESWARI ACS - 25193 SIRC 16772 253 MR. MUNISH KUMAR ACS - 43710 NIRC 16839
187 MS. DEEPIKA YATISH MAROO ACS - 30417 SIRC 16773 254 MS. SWATI AGGARWAL ACS - 44081 NIRC 16840
188 MS. DEEPTI SHARMA ACS - 32221 NIRC 16774 255 MS. NIKHITA SETIA ACS - 44169 NIRC 16841
189 MS. CHANCHAL GARG ACS - 38457 NIRC 16775 256 MS. SETA NAMRATA JAGDISHBHAI ACS - 44802 WIRC 16842
190 MS. DOLLY NARESHBHAI JETHWA ACS - 39228 WIRC 16776 257 MR. VIBHU GAUTAM ACS - 45411 NIRC 16843
191 MR. JITENDER YADAV ACS - 40034 NIRC 16777 258 MR. ROHIT MERANI ACS - 46055 WIRC 16844
192 MS. EKTA GOSWAMI ACS - 40657 EIRC 16778 259 MR. ABU SUFYAN NISAR AHMED ACS - 46237 WIRC 16845
193 MR. AASHISH NANGALIA ACS - 40957 EIRC 16779 260 MS. AVANI BHAGYESH SHARMA ACS - 32370 WIRC 16846
194 MR. LAVNEESH BAREJA ACS - 41312 NIRC 16780 261 MR. KAMALJIT SINGH ACS - 40780 NIRC 16847
195 MS. CHAUHAN URVI ASHWINBHAI ACS - 43032 WIRC 16781 262 MS. SWEETY VINOD AGRAWAL ACS - 43025 WIRC 16848

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263 MR. KUNAL RAJKUMAR BAJAJ ACS - 43192 WIRC 16849 331 MR. NIHAR GAURANG SHETH ACS - 44829 WIRC 16920
264 MS. BHAVYA BANSAL ACS - 43273 NIRC 16851 332 MR. RAKESH KUMAR PALATASINGH ACS - 45149 EIRC 16921
265 MR. JAGSIR SINGH ACS - 45400 NIRC 16852 333 MR. MOHIT SINGH KHARAYAT ACS - 46356 NIRC 16922
266 MS. POONAM GUPTA ACS - 45589 NIRC 16853 334 MS. DIPTI HARSHAL BHATT ACS - 29886 WIRC 16923
267 MS. NIDHI KIRIT SHAH ACS - 45720 WIRC 16854 335 MS. KAJAL GARG ACS - 43609 NIRC 16924
268 MS. TEJASWITA KISHOR DHEMBARE ACS - 45833 WIRC 16855 336 MR. ROHIT RAWAT ACS - 44932 NIRC 16925
269 MR. VIRAL HARESHBHAI THAKRAR ACS - 46235 WIRC 16856 337 MS. VIJAYA MAHESH RAO ACS - 44951 SIRC 16926
270 MR. NAVEEN KUMAR ACS - 46279 NIRC 16857 338 MS. NUPUR CHAKRABORTY ACS - 45714 WIRC 16927
271 MS. KSHAMA PARAS SHAH ACS - 42472 WIRC 16858 339 MR. BALAWANT SINGH ACS - 46282 WIRC 16928
272 MS. SHIVANI LAJPAT JAIN ACS - 44444 WIRC 16859 340 MR. MANOJ HARSHADBHAI LOTIA ACS - 45844 WIRC 16929
273 MR. MOHIT BANSAL ACS - 46112 NIRC 16860 341 SH. SUNDRAN KATHIRESAN FCS - 1496 WIRC 16930
274 SH. UTTAM SHETTY FCS - 8691 WIRC 16861 342 SH. PRASHANT KUMAR KESHARWANI ACS - 21087 WIRC 16931
275 MS. VINI GUPTA ACS - 23312 NIRC 16862 343 MS. SADHANA RAMNIHOR YADAV ACS - 27559 WIRC 16932
276 MS. ARTI KUMARI SHARMA ACS - 28379 WIRC 16863 344 MS. NEEMA NEGI ACS - 39203 NIRC 16933
277 MS. NIDHI JAYANTIBHAI THAKAR ACS - 44796 WIRC 16864 345 MR. ABHISHEK BHANDARI ACS - 42647 NIRC 16934
278 MS. KIRTI DUREJA ACS - 38334 NIRC 16865 346 MR. MANDAR DEEPAK AWASARE ACS - 45256 WIRC 16935
279 MS. SUJATA SACHIN TEMKAR ACS - 39049 SIRC 16866 347 MS. PRIYANKA GUPTA ACS - 45430 NIRC 16936
280 MR. ROHIT KUMAR ACS - 40599 NIRC 16867 348 MR. DODDAPANENI SATWIK ACS - 46234 SIRC 16937
281 MR. PRAVIN BHUDARBHAI CHAUHAN ACS - 44263 WIRC 16868 349 MS. KAVITHA N MOORTHY ACS - 14955 SIRC 16938
282 MS. DEBASHREE DAS ACS - 44708 EIRC 16869 350 MS. KAVITA CHATURVEDI ACS - 25064 NIRC 16939
283 MR. GAGAN ARORA ACS - 46100 NIRC 16870 351 MR. VIKASH BANSAL ACS - 30969 NIRC 16940
284 MS. DIXIT SANEJA ACS - 46142 NIRC 16871 352 MR. ANSHUL GARG ACS - 32301 NIRC 16941
285 MR. AMBER DURGESH KESHARWANI ACS - 46195 WIRC 16872 353 MR. VISHWASKUMAR ASHOKKUMAR SHARMA ACS - 33017 WIRC 16942
286 MR. JATIN BAJAJ ACS - 46273 NIRC 16873 354 MS. MEHAK GOSWAMI ACS - 33378 NIRC 16943
287 MS. NEHA GUPTA FCS - 8269 NIRC 16874 355 MR. JATIN SAHNI ACS - 34587 NIRC 16944
288 SH. CHINTAN DEWAN ACS - 18698 NIRC 16875 356 MS. HEMALATHA G ACS - 37572 SIRC 16945
289 MS. NIDHI SHARMA ACS - 46101 NIRC 16876 357 MS. NEHA KULCHANDER ACS - 43044 NIRC 16946
290 MR. AMIT KUMAR ACS - 28804 NIRC 16877 358 MS. DUBE ANUJA OMPRAKASH ACS - 44198 WIRC 16947
291 MS. MONIKUNTALA BOWRA ACS - 29713 EIRC 16878 359 MR. JAYMIN PIYUSHBHAI MODI ACS - 44248 WIRC 16948
292 MS. SURABHI JAIN ACS - 31754 WIRC 16879 360 MR. SHAH MASOOM HIMANSHUBHAI ACS - 44325 WIRC 16949
293 MR. IMRAN HUSSAIN W ACS - 33999 SIRC 16880 361 MS. SHREYA SRIVASTAVA ACS - 44648 NIRC 16950
294 MS. LOVELY KUMARI ACS - 34778 NIRC 16881 362 MR. AVIK CHAKRABORTY ACS - 45014 EIRC 16951
295 MR. ANKIT SHARMA ACS - 39175 NIRC 16882 363 MR. SHOBHIT GERA ACS - 46042 NIRC 16952
296 MR. ANAND SUBROTO MUKHERJEE ACS - 40485 WIRC 16883 364 MS. ANAGHA KSHITIJ SHIRKHEDKAR ACS - 44623 WIRC 16953
297 MR. ANKIT KHURANA ACS - 42090 NIRC 16884 365 MS. TINA BAGARIA ACS - 45873 EIRC 16954
298 MS. GARGI BHUSHAN GHATPANDE ACS - 43415 WIRC 16885 366 MR. BIKASH KUMAR AGARWALA ACS - 46080 EIRC 16955
299 MR. SONU FANDA ACS - 43455 NIRC 16886 367 MS. ASHA RAMBAHADUR RATHOR ACS - 46207 WIRC 16956
300 MR. VINAY VERMA ACS - 44643 NIRC 16887 368 MR. KRISHNA MOHAN TP KURPAD ACS - 46514 SIRC 16957
301 MS. LABDHI KOCHAR ACS - 44913 NIRC 16888 369 SH. S BALAKRISHNAN FCS - 6852 SIRC 16958
302 MS. JAYA VERMA ACS - 46103 NIRC 16889 370 MS. KHUSHBOO SETHIA ACS - 36230 EIRC 16959
303 SH. RAVINDER KUMAR GUPTA FCS - 6590 NIRC 16890 371 MS. MAYA BHOJWANI ACS - 44171 NIRC 16960
304 MS. ANURADHA NEWATIA ACS - 24613 NIRC 16891
CANCELLED*
305 MS. ASHWINI ASHOK DESALE ACS - 25191 WIRC 16892
306 MR. SHASHANK CHINTAMAN GHAISAS ACS - 40386 WIRC 16893 SL. NAME MEMB NO COP NO REGION
No
307 MS. NAMRATA SUHAS GADRE ACS - 45527 WIRC 16894
1 MS. BARKHA ARORA ACS 35918 15800 NIRC
308 MS. PRIYANKA CHANDRASHEKHAR GOLE ACS - 45706 WIRC 16895
2 MR. K A RANGASWAMY FCS 4065 3794 SIRC
309 MS. BHUMIKA JIGNESH JAIN ACS - 44553 WIRC 16896
310 MR. ANKIT DUBEY ACS - 46212 WIRC 16897 3 MS. MADHURI RAJENDRA MORE ACS 27540 14310 WIRC
311 MS. SURABHI BHANDARI ACS - 36541 NIRC 16898 4 MR. RISHAV JAISWAL ACS 38834 15709 NIRC
312 MR. AJAY MADAIAH BOLLARAPPANDA ACS - 28904 SIRC 16899 5 MS. MEGHA CHANDAK ACS 38350 14975 NIRC
313 MR. ANANT PRAKASH ACS - 29224 NIRC 16900 6 MR. SUBRATA PANDA FCS 7083 16273 NIRC
314 MR. NARESH KUMAR GOEL ACS - 31967 NIRC 16901 7 MS. KHUSHBOO VIJAY ACS 36456 16392 NIRC
315 MS. PREETIKA MISHRA ACS - 32490 NIRC 16902 8 MS. MAMTA ACS 41762 15533 NIRC
316 MS. DILPREET KAUR KOMAL ACS - 39656 NIRC 16903 9 MR. ANKIT JAIN ACS 29499 12579 WIRC
317 MR. SANKET BANSAL ACS - 45757 NIRC 16905 10 MS. REVATI AMEY GOKHALE ACS 18465 10723 WIRC
318 MS. CAUVERAMMA B B ACS - 46064 SIRC 16906 11 MR. ARANI GUHA FCS 8246 9573 EIRC
319 MS. DISHA VIKRAMBHAI PATEL ACS - 46189 WIRC 16907 12 MS. KARISHMA KHANDEL ACS 34358 15835 WIRC
320 MR. CHANDER MOHAN AGGARWAL ACS - 46277 NIRC 16908 13 MS. SNEHA AGARWAL ACS 34455 14401 NIRC
321 MS. P D MEHTA ACS - 5131 WIRC 16909 14 MR. AJAY KUMAR ACS 33207 14865 NIRC
322 SH. V VENUGOPALAN ACS - 13511 SIRC 16910 15 MS. SONICA BAMBI ACS 33704 12479 NIRC
323 MR. KARUNAKARAN RADHAKRISHNAN ACS - 30614 SIRC 16911
16 MR. KAPIL KUMAR BALI FCS 5284 9458 NIRC
324 MS. DEEPIKA PREMSINGH KHANGAROT ACS - 38978 WIRC 16912
17 MS. SONAL MANISH SHARMA ACS 19898 15940 WIRC
325 MR. SUMIT KUMAR ACS - 46313 EIRC 16913
18 MS. ANKITA SUSHIL JASRAPURIA ACS 38477 14322 WIRC
326 MR. RAKESH KUMAR ACS - 41739 NIRC 16915
19 MR. PAWAN KUMAR ACS 40931 16393 NIRC
327 MS. ANUPAMA GOVARDHANAGIRI ACS - 16404 SIRC 16916
328 MS. PRAKRITI AJAY JAIN ACS - 44359 WIRC 16917 20 MS. S KRITHIKA ACS 37001 14276 SIRC
329 MR. LIJESH K ACS - 44880 SIRC 16918 21 MR. ASWIN SARMA M ACS 41969 15778 SIRC
330 MRS. SHALINI MALIK ACS - 27980 NIRC 16919 * DURING THE MONTH OF JUNE & JULY 2016

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NEWS FROM THE INSTITUTE
22 MR. RAJAT KHANEJA ACS 38840 14618 NIRC 84 MS. BHARTI RAMCHANDANI ACS 41526 16060 NIRC
23 MS. POONAM KAMBOJ ACS 38544 14438 NIRC 85 MRS. DIPTI MODI ACS 25460 12912 WIRC
24 MRS. ARCHANA SAPRA ACS 22550 15355 NIRC 86 MR. SOORAJ SONI ACS 36771 13747 WIRC
25 MR. DINESH ARORA FCS 5393 12433 NIRC 87 MR. M S I LAKDAWALA FCS 935 12521 WIRC
26 MS. K PRIYA ACS 11090 4490 SIRC 88 MRS. MILAN BHATIA ACS 34850 13603 EIRC
27 MS. NISHANKA SRIVASTAVA ACS 28684 15382 NIRC 89 MS. SAPNA OMER ACS 29353 10594 WIRC
28 MR. P M NAIR ACS 7692 7515 WIRC 90 MR. SHASHIDHARA S ACS 30286 14627 SIRC
29 MS. SMITA MISHRA ACS 26489 9918 EIRC 91 MR. HARMEET SINGH ACS 34121 13276 NIRC
30 MS. NIDHI KHANDELWAL ACS 37896 14579 SIRC 92 MR. HIMANSHU BASANTLAL GAJRA ACS 40729 15168 WIRC
31 MR. KAILASH PRASAD GUPTA ACS 2382 5029 EIRC 93 MS. VINTI TANGRI ACS 38118 14708 SIRC
32 MR. JATINDER KUMAR KATARIA ACS 28523 11863 NIRC 94 MR. NISHANT SINGH ACS 43967 16119 NIRC
33 MR. ARUN GOYAL ACS 29223 10510 NIRC 95 MR. ABHINAV KUMAR PANDEY ACS 43487 16022 EIRC
34 MRS. AMISHA RITESH JAIN ACS 28773 10553 WIRC 96 MS. ANKITA NAVNEET DAGA ACS 34728 13009 WIRC
35 MS. RACHNA ACS 43339 15988 EIRC 97 MS. TANISHA YADAV ACS 34870 12949 NIRC
36 MS. SHEETAL MEHRA FCS 8544 9277 WIRC 98 MS. NEHA ACS 44389 16553 NIRC
37 MS. ANTIMA GUPTA ACS 38140 14599 NIRC 99 MR. ANUJ JAIN ACS 27661 10298 NIRC
38 MS. RACHANA PRAKASH ACS 32481 13166 NIRC
39 MR. ANANG KUMAR SHANDILYA FCS 6693 13330 NIRC
40
41
MS. NIDHI BHUTRA
MRS. ROHINI SATISH KADU
ACS 40125
ACS 34525
15318
15078
NIRC
WIRC
LICENTIATE ICSI
42 MS. KHUSHBU SINGHAL ACS 25992 9929 NIRC ADMITTED*
43 MR. VISHWAS HEGDE ACS 41955 15595 SIRC S. NAME LICENTIATE REGION
44 MS. PRITI SHIRKE ACS 23044 9970 WIRC NO. NO.
45 MR. VINOD KUMAR RAINA FCS 5668 16719 NIRC
1 MR. SHRINIDHI K A 6846 SIRC
46 MR. VISHWAS KESHAV BODAS ACS 1541 8104 WIRC
47 MR. SUBHAS CHANDRA BOSE ACS 4667 2529 EIRC 2 MR. KUPPILI SREERAMAM 6847 SIRC
48 MR. ARJIT GUPTA ACS 30696 15385 NIRC 3 MR. RAHUL KUMAR PILANIA 6848 EIRC
49 MR. PARMINDER SINGH ACS 41652 15525 NIRC 4 MR. N SANTHANA KRISHNAN 6849 SIRC
50 MR. VIVEKA FANIPATI HEGDE ACS 38552 14515 SIRC
5 MR. SAIBAL CHANDRA DUTTA 6850 EIRC
51 MS. ANUBHUTI TIWARI ACS 35731 13989 WIRC
6 MR. RAJESH RAMACHANDRAN 6851 SIRC
52 MS. NANCY BHANDARI ACS 28486 10338 NIRC
53 MRS. DIPTI ATISH VARTAK ACS 23882 8579 WIRC 7 MR. AMIT KAUSHAL 6852 NIRC
54 MS. JYOTI SHARMA ACS 36607 13621 NIRC 8 MR. KANAKARAJU S 6853 SIRC
55 MS. RIYA ARORA ACS 39623 15240 EIRC 9 MS. SUKANYA VASHIST 6854 NIRC
56 MR. PARTHASARATHI ACS 43037 16127 SIRC
KUMARASWAMI REDDIAAR
10 MR. SRIVATSAN B 6855 SIRC
57 MR. ANILKUMAR G ACS 18030 14365 SIRC 11 MS. BHUMI RAMESH CHANDRA RUPAREL 6856 WIRC
58 MS. RITU GUPTA ACS 40060 15399 NIRC 12 MR. LUV KUMAR GARG 6857 NIRC
59 MR. VIJAY KUMAR ACS 40118 14920 NIRC 13 MR. KUSHAGRA TIBREWAL 6858 EIRC
60 MS. SARITA KUMAR LEELARAMANI ACS 35587 14133 WIRC
14 MR SIDHAARDHA MANNAVA 6859 WIRC
61 MS. NANCY GUPTA ACS 39529 14766 NIRC
62 MS. ANUPAMA SHARMA ACS 34704 14258 NIRC 15 MR. MANOJ KUMAR SINGH 6860 NIRC
63 MS. C SAI SHARANYA ACS 36827 13862 SIRC 16 MS. JANHAVI MEHUL KOTHARI 6861 WIRC
64 MS. PRADEEBHA R FCS 7892 14291 SIRC 17 MR. SHAILESH GOWRI SHANKAR 6862 SIRC
65 MS. RASHI TIWARI ACS 27852 15856 SIRC 18 MR. SUDARSHAN NANJANGUD SUBRAMANYA 6863 SIRC
66 MR. RAJEEV RANJAN ACS 42840 16220 EIRC
19 MS. SHAIKH SHAHABANOO SIDDIQ AHMED 6864 WIRC
67 MS. SHAMITA SINHA MAHAPATRA ACS 44282 16574 EIRC
68 MR. PRAVEEN KUMAR ACS 32631 15477 NIRC
* DURING THE MONTH OF JUNE & JULY, 2016
69 MR. ROHIT KUMAR ACS 37781 15205 EIRC
70 MR. AYUSH JAIN ACS 39017 14559 NIRC
71 MR. SWAMINATHAN NATARAJAN ACS 19931 12904 SIRC ATTENTION MEMBERS
72 MR. BIRAJA PRASAD PANDA ACS 44627 16583 EIRC
73 MS. AMRITA CHITRANSHI ACS 42274 16046 NIRC The Institute has brought out a CD containing List of
74 MR. SHRIKANT W HAWALDAR ACS 10173 15440 WIRC Members of the Institute as on 1st April, 2016. The
75 MRS. NITA ASHOK BUGADE ACS 34576 15302 WIRC CDs are available at the headquarters of the Institute
76 MS. AKANKSHA KANDOI FCS 6883 16024 WIRC for a cost of Rs. 250/- for members and Rs. 500/- for
77 MS. DEEPIKA KAPOOR ACS 39042 15296 NIRC non-members. Request along with the payment may
78 MS. GARIMA PRAVEEN JAMAD ACS 24630 12740 SIRC please be sent to the Membership section at email id
79 MRS. DHARA MITHIL PABARI ACS 36808 14587 WIRC
[Link]@[Link].
80 MR. S VIDHYASHANKAR FCS 5322 8118 SIRC
81 MR. ANAND KUMAR GUPTA FCS 6396 11481 NIRC
For queries if any, please contact on telephone no: 011-
82 MS. DIVYA JAIN ACS 24638 11624 NIRC
83 MRS. PRITI KANODIA ACS 34579 13907 EIRC
45341063.

140 I
SEPTEMBER 2016 CHARTERED SECRETARY
 NEWS FROM THE INSTITUTE
Company Secretaries
Benevolent Fund
MEMBERS ENROLLED REGIONWISE AS LIFE MEMBERS OF THE
COMPANY SECRETARIES BENEVOLENT FUND*

S. LM NAME MEMB No. CITY S. LM NAME MEMB No. CITY

No. No. No. No.
EIRC 16 11436 MS. AKRITI MAHAJAN FCS - 8809 DELHI
1 11411 MR. AVIJEET PATTANAIK ACS - 46240 BHUBANESWAR SIRC
2 11433 MR. PINTU MAZUMDAR ACS - 43390 RANCHI 17 11409 MS. JEYA PACKIAMANI ACS - 46498 CHENNAI
NIRC 18 11412 MS. HANSIKA JAIN H ACS - 45937 BANGALORE
3 11410 MRS. MONIKA GUPTA ACS - 25480 FARIDABAD 19 11430 MS. JAMBURI SHAILAJA ACS - 46693 KHAMMAM DISTT
4 11413 MR. KAPIL KUKREJA ACS - 46568 DELHI 20 11431 MR. P DURAIBABU ACS - 44558 CHENNAI
5 11415 MR. SIDHARTH SHARMA ACS - 30367 DELHI 21 11432 MRS. JYOTHI SHIVAYOGI ACS - 33062 BANGALORE
6 11416 MS. PRIYA ACS - 43972 DELHI WIRC
7 11417 MR. HANUMAN PRASAD ACS - 46027 CHURU DISTT 22 11408 MR. HARISH KUMAR ACS - 38713 VADODARA
8 11418 MS. SHIPRA PAREEK ACS - 45434 BUNDI MALSATTER
23 11414 MR. GIRISH AGRAWAL ACS - 46425 INDORE
9 11419 SH. UDAYVEER YADAV ACS - 26743 DELHI
24 11424 MR. BIRJUKUMAR ACS - 41903 SURAT
10 11420 SH. A K MATHUR FCS - 2391 NEW DELHI MOHANBHAI GODHANI
11 11421 MS. SWATI DAGA ACS - 43208 BIKANER 25 11425 MR. YOGESH HARILAL ACS - 36731 MUMBAI
12 11422 MR. MOHD ARSHAD ACS - 32811 NEW DELHI SONEJI
26 11426 MR. JITESHKUMAR ACS - 31727 SURAT
13 11423 MR. RANJIT KUMAR BEHERA ACS - 44706 NEW DELHI RAMCHANDRA VARKAL
14 11429 SH. SAURABH SRIVASTAVA FCS - 7275 LUCKNOW 27 11427 MS. SHEETAL VAZE FCS - 6729 PUNE
15 11435 MS. PURNIMA BHASIN ACS - 46782 KANPUR 28 11428 MR. BALAWANT SINGH ACS - 46282 PUNE
* ENROLLED DURING THE PERIOD 21.07.2016 TO 19.08.2016
29 11434 MR. SAGAR BANSIKUMAR ACS - 44519 VADODARA
GANDHI

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CHARTERED SECRETARY SEPTEMBER 2016 141
 List of Practising
NEWS FROM THE INSTITUTE
3B, VISHVESHVARYA NAGAR, GOPALPURA BYPASS, NEAR TRIVENI
PULIYA PINCODE:302018, JAIPUR
Members Registered KETY PILLO MISTRY
KALPAK HORMUS, FLAT NO.501, PERRY CROSS ROAD, BANDRA-WEST
For The Purpose of PINCODE:400050, MUMBAI
MADHUMITA ROY
Imparting Training During 601, CRYSTAL ISLE 2, ROYAL PALM, AAREY MILK COLONY, MAYUR
NAGAR, GOREGON EAST, PINCODE:400065, MUMBAI
The Month of July, 2016 MANOJ RAY
[Link]. 9-29-19/A, FLAT NO. 201, LEVEL -2, WALTAIR HEIGHTS, BALAJI
NAGAR, VIP ROAD, NEAR TYCOON HOTEL, SIRIPURAM PINCODE:530003
A. PADMASRI VISAKHAPATNAM
1-1-711/1, GANDHI NAGAR, PINCODE:500080, HYDERABAD NAVNIT PADIA
AJAY SHARMA 11, DEVDARSHAN BUNGLOWS, KABIR ENCLAVE VIBHUSA ROAD, GHUMA
8/35 1ST FLOOR, SANTI BRAVA SCHOOL MARG, KAROL BAGH PINCODE:380058, AHMEDABAD
PINCODE:110005 NEW DELHI NEHA ARORA
ANITA GEHLOT A-5/146 C, ASCHIM VIHAR, PINCODE:110063, NEW DELHI
SPL 1, NEW POWER HOUSE ROAD, INDUSTRIAL ESTATE, SHASTRI NAGAR NEHA JAIN
PINCODE:342003, JODHPUR 60, 2ND FLOOR, KALYAN COLONY, KHATIPURA PINCODE:302012,
ARUN JAIN JAIPUR
C/O RAJENDRA SINGH CHAUHAN, ADVOCATE, KASHI RAM CIRCLE, NEAR PANKAJ
TEMPO STAND ROAD NO.2, PINCODE: 301001, ALWAR 88/9 3RD FLOOR, STREET NO.1, SHAKARPUR PINCODE:110092, DELHI
ASHWIN ASHOK AHIR PANKESH HIRABHAI SUTARIYA
VRINDAVAN COMPLEX, OFFICE NO. 26, SECTOR 9/A, KUTCH D-23, SHANTI SHOPPING CENTER, GROUND FLR, MIRA RD STATION, MIRA
PINCODE:370201, GANDHIDHAM ROAD (E), PINCODE:401107, THANE
AVIJIT VASU PARVEEN KUMAR SAINI
CORPORATE TOWER, PLOT NO. 21 & 22, BEHIND BANK OF 175, 1ST FLOOR GALI NO. 17, PRATAP NAGAR, MAYUR VIHAR PHASE - 1
MAHARASHTRA, 2ND PULIYA, COMMERCIAL CENTRE, CHOPSANI HSG PINCODE:110091, NEW DELHI
BOARD, PINCODE:342008, JODHPUR PAWAN KUMAR KAUSHIK,
AVINASH PRAKASH GANDHEWAR C-9/128, YAMUNA VIHAR, PINCODE:110053, DELHI
PLOT NO. 87, ANANT NAGAR, PINCODE:440013, NAGPUR PRACHI HARSHAD SHAH
CHANCHAL MITTAL 16TH KOTHARI TOWER, 4TH FLOOR, RAM NAGAR, ABARMATI,
R-303, ROHAN MITTILA, NEW AIRPORT ROAD, VIMAN NAGAR PINCODE:380005, AHMEDABAD
PINCODE:411014, PUNE PRIYA JHALANI
CHETAN SUBHASH DESHPANDE P. NO. 8, VIKAS NAGAR, KALWAR ROAD, JHOTWAR PINCODE:302012,
C-31, 1ST FLOOR, MAHALAXMI CHAMBERS, NEAR CENTRAL BUS STAND, JAIPUR
PINCODE:416001, KOLHAPUR RAJDEEP VILAS MAKOTE
CHIRAG KALRA C 34 1ST FLOOR, MAHALAXMI CHAMBERS, NEAR CENTRAL BUS STAND,
SHOP NO. 1, HOUSE NO. 2976, N H B C UJHA ROAD, PINCODE:132103, PINCODE:416001, KOLHAPUR
PANIPAT RAMA LAKHOTIA
CHOPRA NAYNA PARASMALJI 18, RABINDRA SARANI, PODDAR COURT, GATE NO.3, 5TH FLOOR, ROOM
101, SHRI PARASWANATH APP, SUBHASNAGAR SOCIRTY, NO. B4 PINCODE:700001, KOLKATA
GIRDHARNAGAR, SHAHIBAUG, AHMEDABAD RAVISHANKAR PERIWAL
DRASHTI ANANDPRAKASH SHARMA G-36, MANISH MARKET, NR. RESHAMWALA MARKET, RING ROAD
51 `K`GOVT COLONY, OPP SARDAR PATEL SEVA SAMAJ, NAVRANGPURA PINCODE:395002, SURAT
PINCODE:380009, AHMEDABAD RENU KATHURIA
ESAKI VENUGOPAL 283/1, JAWAHAR COLONY, N I T PINCODE:121005, FARIDABAD
NO. 52/A VOC NAGAR, NEHRU STREET, ANNA NAGAR EAST, RIKTA GUPTA
PINCODE:600102, CHENNAI
B-29/B, STREET NO. 3 KANTI NAGAR EXTENSION,
GAURAV AGARWAL PINCODE:110051, DELHI
3, PRAKASH NAGAR, NAV LAKH CHORAHA, PINCODE:452001, INDORE ROHIT RAMACHANDRAN
GAURAV KUMAR NO. 13 B CLASSIC SUNNY SANDS, CANAL ROAD, NEAR BHARATH MATA
91 SPRING BOARD PLOT NO.23, SECTOR-18, PINCODE:122002, GURGAON COLLEGE THRIKKAKARA PINCODE:682021, KOCHI
GAURAV PAWAN SINGLA RONAK BHARATBHAI LADHAWALA
D-139, PARASH PRABHU SOCIETY, OPP VISHAL NAGAR, NEAR SONAL 314-315, V2 COMPLEX, NR. BHAIKAKA CIRCLE, VALLABH VIDHYANAGAR
PARK, ISANPUR, PINCODE:382443, AHMEDABAD PINCODE:388120, ANAND
HEMLATA DANGI RUKHSAR PERWEEN
376, SECTOR -6, SHIV COLONY, HIRAN MAGRI, ZAMAR KOTRA ROAD H. NO. 528, 39, MISTRI MOHALLADORANDA NEAR JHARKHAND
PINCODE:313002, UDAIPUR HIGHCOURT PINCODE:834002, RANCHI
HIMANSHU YADAV SANCHIT KUMAR
194 FAITHFUL GANJ, CANTT, PINCODE:208004, KANPUR 91 SUKHIMAL DASNA GATE, PINCODE:201001, GHAZIABAD
HIRAPARA KRUNAL VINUBHAI SANJEEV KUMAR DIKSHIT
10, SHIVSAGAR COMPLEX, INSIDE AAYUSH, NURSING HOME, OPP DHARAM KUNJ, B-121, NEAR PATEL PARK OPP. E TV OFF, HARMU
KAMESHWAR PARK, NR KAK, ARIYA MANINAGAR BANK, MAHADEVNAGAR HOUSING COLONY PINCODE:834002, RANCHI
TEKRA PINCODE:382418, AHMEDABAD SANJOG VITTHAL NARAVANKAR
JYOTI RAMKISHAN PRAJAPATI SAHARSH CO-OP HSG, PLOT NO. 256, ROOM NO. 16, NEAR IES SCHOOL
601-A WING, NATIONAL GARDEN, TAKKA, PANVEL PINCODE:410206, SECTOR NO. 2, CHARKOP, KANDIVALI (W), PINCODE:400067, MUMBAI
RAIGAD SHANKY SANTANI
KAPIL KAUSHIK PURSHOTTAM COMPLEX, CMD CHOWK, PINCODE:495001, BILASPUR

142 I
SEPTEMBER 2016 CHARTERED SECRETARY
 NEWS FROM THE INSTITUTE
SHASHI KIRAN M V GANGANAGAR MOTORS LIMITED
NO. 10/6, 1ST FLOOR, 4TH CROSS, 13TH MAIN ROAD, BANASHANKARI, 1, TRANSPORT NAGAR, JAIPUR(24)
3RD STAGE, 1ST BLOCK SRINAGAR PINCODE:560050, BANGALORE GRJ DISTRIBUTORS &DEVELOPERS PRIVATE LIMITED 64,SCINDIA HOUSE
SRISHTHI MATHUR CONNAUGHT PLACE, NEW DELHI 110001
K-3 LAXMAN PATH, NEAR POST OFFICE, SHYAM NAGAR, SODALA INDIA GREEN REALITY LIMITED
PINCODE:302019, JAIPUR 12, SATYAM MALL [Link] SCHOOL, JODHPUR CHAR RASTA,SATELLITE,
SUNITA AHMEDABAD - 380015
1139, FIRST FLOOR, SECTOR 12 A, PINCODE:134100, PANCHKULA JHARKHAND ACCELERATED ROAD DEVELOPMENT
COMPANY LTD
SURAJ SINGH
443/A, ROAD NO. - 5, ASHOK NAGAR, RANCHI
F-3196, 1ST FLOOR, RAJAJIPURAM, PINCODE:226017, LUCKNOW
MULTI INFRATECH PRIVATE LIMITED
SWEENY GULATI
1/18 -20DL 110055 IN RANI JHANSI ROAD NEW DELHI
GH-14, FLAT NO. 73, PASCHIM VIHAR, PINCODE:110087 NEW
S V CREDITLINE PRIVATE LIMITED
DELHI
5TH FLOOR TOWER B, S A S TOWERS, MEDICITY, SECTOR- 38, GURGAON
TEJAS BHARAT SHAH
SHIRDI INDUSTRIES LIMITED
205, SAI LEELA COMMERCIAL COMPLEX, OPP. MOKSHA PLAZA, S.V.
ROAD, BORIVALI (WEST) PINCODE:400092, MUMBAI 2ND FLOOR, MHATRE PEN BUILDING, GYAN MANDIR BUILDING, SENAPATI BAPAT
MARG, DADAR WEST, MUMBAI- 400028
VARUN KUMAR SINHA
SIEMENS HEALTHCARE PRIVATE LIMITED
2/3, 3RD FLOOR, AAKASH TOWER, WATER WORKS ROAD, NEAR SHITLA 130 PANDURANG BUDHKAR MARG, MUMBAI-RO(79)
MANDIR (ABOVE IDBI BANK), SAKCHI PINCODE:831001, JAMSHEDPUR
SKT BUILDCON PRIVATE LIMITED
VENKATESWARLU DEVASANI
[Link].271,MANDIR ROAD,GIRITAL, KASHIPUR, DISTT-UDHAM SINGH NAGAR
NO.5, AISHWARYA ARCADE, GULMOHAR, ENCLAVE ROAD, OPP SBI BANK,
SPECTRA OUTSOURCE SOLUTIONS PRIVATE LIMITED
KUNDANHALLI, GATE, MUNNEKOLALA, MARTHAHALLE, PINCODE:560037
BANGALORE OFFICE NO-247,SECOND FLOOR,,14/5, MAIN MATHURA ROAD,NEAR MEWLA
MAHARAJPUR METRO STATION FARIDABAD
VIKAS BANSAL
SUZUKI MOTOR GUJARAT PRIVATE LIMITED
411, B-09, ITL TWIN TOWER, NETAJI SUBHASH PLACE,PITAMPURA,
PINCODE:110034, NEW DELHI B-3 SAFAL PROFITAIRE PRAHLADNAGAR AHMEDABAD AHMEDABAD(61)
USC ADVISORY PVT. LTD.
VIKAS GUPTA
33, ECSTASY BUSINESS PARK, GROUND FLR, J S DOSSA ROAD ,CITY OF
B-95, STREET NO.10, SHASHI GARDEN, PATPARGANJ PINCODE:110091, JOY,MULUND, MULUND WEST, MUMBAI
NEW DELHI
UTSAV SECURITIES PRIVATE LILMITED
VIKAS KUMAR GARG
4TH FLOOR,15/3198, STREET NO.1, SANGAT RASHAN, PAHAR GANJ, NEW DELHI
D-4 B FIRST FLOOR RAMPRASTHA, NEAR RAGHUNATH TEMPLE, CENTRAL DELHI DL 110055
PINCODE:201011, GHAZIABAD VIBHU INTERNATIONAL LIMITED
VIKAS RAJU VARMA 316, EXPRESS TOWER, COMMERCIAL COMPLEX, AZADPUR-110033 DELHI-
3/3, BMC COLONY, KHERWADI ROAD, BANDRA (E) PINCODE:400051, RO(39)
MUMBAI VISHVARAJ INFRASTRUCTURE LIMITED
YESHA H SHAH JOLLY MAKER 2, UNIT NO.88 (A), 8TH FLOOR, NARIMAN POINT MUMBAI-
# 39, 1ST FLOOR, SAJJAN RAO ROAD, V V PURAM PINCODE:560004, RO(79)
BANGALORE A F ENTERPRISES LIMITED

List of Companies DSM-334, DLF TOWER, SHIVAJI MARG, DELHI-RO(39)

ADHIRAJ DISTRIBUTORS LIMITED
Registered for 105/5/1,KSHETRA BANERJEE LANE,HOWRAH : 711 102, KOLKATA-RO(19)
BAZEL INTERNATIONAL LIMITED
Imparting C-119, FIRST FLOOR LAJPAT NAGAR-II, DELHI-RO(39)
COMPANY BIRLA TOWER
Training during the 3RD, FLOOR, 25, BARAKHAMBA ROAD, NAGPUR(67)
CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED
DE

month of July, 2016 TOWER 3, 1ST FLOOR, EQUINOX BUSINESS PARK, LBS MARG, KURLA (WEST),
MUMBAI 400 070
GWALIOR POLYPIPES LIMITED
ALLENGERS MEDICAL SYSTEMS LIMITED 263 LGF GREATER KAILASH - 1, NEW DELHI
SCO-212-13-14, SECTOR-34, CHANDIGARH(21) JALAN CEMENT WOKS LIMITED
C T A APPARELS PRIVATE LIMITED 81 N S ROAD, 2ND FLOOR NO 202, KOLKATA, KOLKATA-RO(19)
C-633, NEW FRIENDS COLONY, DELHI-RO (39) MAHINDRA RURAL HOUSING FINANCE LIMITED
CONSTELLATION BLU MANAGEMENT CONSULTANTS SADHANA HOUSE, 2ND FLOOR, 570 P.B. MARG, WORLI,
LLP 412, NAVIJIVAN BUILDING NO.3, LAMINGTON ROAD, NAVIJIVAN COMMERCIAL MUMBAI, 400018
PREMISES, CO-OP SOCIETY, MUMBAI 400008. MARSHALL SONS & CO (INDIA) LTD
CORPORATE CAPITALVENTURES PVT. LTD. 3, N.S ROAD, KOLKATA-RO(19)
160(BASEMENT), VINOBA PURI, LAJPAT NAGAR, DELHI-RO(39) MOMAI APPARELS LIMITED
DELOITTE TOUCHE TOHMATSU INDIA LLP 305-309, 3RD FLOOR, PACIFIC PLAZA, MAHIM DIVSION, TPS IV, [Link], DADAR
12, DR. ANNIE BESANT ROAD OPP. SHIVSAGAR ESTATE, WORLI MUMBAI- WEST MUMBAI 400028
RO(79) PARTH ALLUMINIUM LIMITED
DLF UNIVERSAL LIMITED “GAYATRI HOUSE”, ASHOK VIHAR, NEAR MAITRI AVENUE SOCIETY,OPP. GOVT.
SHOPPING MALL, 3RD FLOOR, ARJUN MARG, DLF CITY, PHASE- I, GURGAON ENG. COLLEGE, MOTERA, SABARMATI, AHMEDABAD(61)
ENDURANCE WEB SOLUTIONS PRIVATE LIMITED PRATIBHA INDUSTRIES LIMITED
UNIT NO.501, 5TH FLOOR, IT BLDG. 3, NESCO IT PARK, NESCO COMPLEX, SHRIKANT CHAMBERS, PHASE II, 5TH FLOOR, SION - TROMBAY ROAD, NEXT TO R.
WESTERN EXPRESS HIGHWAY, GOREGAON (E), MUMBAI - 400063 K. STUDIO, CHEMBUR MUMBAI MH 400071
FOODWORLD SUPERMARKETS PRIVATE LIMITED RELICAB CABLE MANUFACTURING LTD 57/1(4B), BHENSLORE INDUSTRIAL
NO. 740, ESWARI INDUSTRIAL ESTATE, GATE NO. 2, HULIMAVU, ESTATE, VILLAGE DUNETHA, NANI DAMAN, DAMAN - 396213
BANNERGHATTA ROAD, BANGALORE(41) SURAJ HOLDINGS LIMITED
A-92C, TAIMOOR NAGAR, NEW FRIENDS COLONY, DELHI-RO(39)

I
CHARTERED SECRETARY SEPTEMBER 2016 143
 BRAIN – TEASERS! Attention Members
(Win Prizes)
Revolving Fund Schemes for becoming
life members of CSBF
The Managing Committee of Company Secretaries Benevolent
Fund (CSBF) has launched the following schemes for enrolling
To win prizes, a person has to send replies to both (i.e. Legal
the members of the Institute as life members of the CSBF. The
Jargons & Case Study). Three prizes – a first, a second and a members may take benefit out of these schemes.
third carrying Rs. 2000, Rs. 1500 and Rs. 1000 respectively will
be awarded to the best entries in order of merit. The decision of Employer’s Revolving Fund Scheme for their employees:
the Institute will be final and binding and no query/clarification
whatsoever will be entertained. The names of the winners will Under this scheme, the Companies, Practising Company
Secretaries (PCS) and other organizations where the members
be published in one of the future issues of the Journal. Please
of the Institute are working may create a Revolving Fund, to
send your replies to [Link]@[Link] latest by 25th of September provide financial assistance out of this fund to their employee(s)
2016 highlighting Replies to September 2016 Brain Teasers by paying his/her one time subscription amount (Rs.7500/-) to
Column. CSBF to enable them to become life member of the CSBF. This
amount so disbursed as financial assistance to the member may
Brain Teasers September 2016 be deducted from the monthly salary of the member employee
in instalments or as per the mutually agreed terms between the
Simple Legal Terms employer and the employees. The employer companies, PCS and
other organizations will be given proper recognition by CSBF and
their names will be hosted at the webpage of CSBF as well as
published in the Chartered Secretary journal.

General Revolving Fund Scheme for the Members of the

Institute:

This scheme will be administered by the Individual Members

(“Contributory Member”) of the Institute to enable the eligible
members (“Beneficiary Member”) of the Institute to become
Across members of CSBF. The financial assistance will be provided at
1. Let the Seller beware
2. A Court order to stop/start a the discretion of the contributory member but in no case it should
prescribed action be more than 80% of the one-time subscription amount (Rs.7500/-
3. To take a legal vow
4. For a particular purpose ) to be paid by the beneficiary member for becoming a Life
5. An agreement made for member of CSBF. Members having less than five years standing
restricting competition
Down as an Associate member shall only be eligible for this scheme.
1. A written statement made
under Oath The financial assistance so provided by the Individual Members
2. Also known as a bond will be refunded in instalments as per the terms and conditions
3. Compensation in terms of
Money for a legal wrong mutually agreed between them. The Contributory Members will be
4. Without notice to other party given proper recognition by CSBF and their names will be hosted
5. Order to produce a person
at the webpage of CSBF as well as published in the Chartered
CASE STUDY
physically
6. A legally enacted law Secretary journal.

Transport sector is prone to monopolies / abuse across Revolving Fund Scheme administered by CSBF:
the globe.
Under this scheme any company, individual (member or non-
In India, a shake up of services and prices in the transport sector member) or entity may contribute any amount towards the
is being witnessed thanks to the app based aggregators. Low Revolving Fund Scheme to be administered by the CSBF. The
prices of Rs 6/km, share taxis, surge pricing are entering common CSBF will administer this revolving fund scheme for the new
parlance of a regular commuter. Still black spots exists across members of the Institute to enable them to become member of
India, be it upmarket Gurgaon or rural Uttrakhand, consumer the CSBF. Members having less than five years standing as an
Associate shall only be eligible for this scheme. This scheme shall
is being squeezed. Such phenomena are witnessed amongst
be administered out of the contributions received by the CSBF
Private Transport Operators like taxis, autos, buses, tempos, specifically for this scheme only and earmarked for the scheme:
vans, etc. “CSBF Membership Assistance Fund”. Beneficiary Members
shall have to contribute at least 20% of the one-time subscription
India needs a solution. amount to be paid by them for becoming a Life-member of CSBF.
1) Has the state failed in delivering to its citizens their freedom They shall refund the amount to the Fund in not more than four
to travel. quarterly instalments by way of Post dated cheques within a
period of one year. Amount refunded by the beneficiaries would
2) Are Internet based services a boon or a bane. be credited to the CSBF. Beneficiary Members shall be required
3) If you were ‘forum shopping’, where would you seek a remedy - to submit an undertaking to refund the amount.
a) Consumer Protection, b) Writ, c) PIL,d) Competition
Commission,e) civil proceedings, or other. Note: In the above schemes, no interest or other amount shall be
charged from the members seeking financial assistance.

144 I
SEPTEMBER 2016 CHARTERED SECRETARY
 NEWS FROM THE INSTITUTE & REGION
RANCHI CHAPTER
Programme QR Code/Weblink
Investor Awareness Pro- [Link]/portals/21/ IAP_

NEWS FROM
gramme held on 14.8.2016 - Ranchi on [Link]
The investors were made
aware of investor protection-
THE REGIONS dos & don’ts and also apprised
about the fraudulent aspects of
various Chit funds and Ponzi
schemes prevailing in the mar-
ket. Dr. Diwakar Minz, Proctor,

EASTERN INDIA REGIONAL COUNCIL

Ranchi University was the
Chief Guest.
Independence Day celebration [Link]/portals/21/ Inde-
held on 15.8.2016 pendence [Link]
Programme QR Code/Weblink
Education Summit with MCC [Link]
[Link]
Interactive Meeting with B.
Mohanty, Registrar of Compa-
nies (WB)
Study Circle Meeting on “Direc-
tors’ Report and Notice of AGM”.
NORTHREN INDIA REGIONAL COUNCIL
Programme QR Code/Weblink
BHUBANESWAR CHAPTER Session on Start up & Stand up NA
Programme QR Code/Weblink on 3.8.2016
Celebration of Independence [Link] Workshop on NCLT/NCLAT
Day on 15/08/2016 baneswar/[Link] Rules, 2016 held on 6.8.2016
Study circle meeting on GST – PCS Help Line on “Technical
General Exposure on Issues relating to E-filing” held
23/08/2016 on 10.8.2016
Panel Discussion on GST on 70th Independence Day
27/08/2016 Celebration and Flag Hoisting
Full day workshop on GST on held on 15.8.2016
30/08/2016 Seminar on Delegated
Legislation : Changes &
HOOGHLY CHAPTER Impact (Recent Amendment to
Rules under Companies Act,
Programme QR Code/Weblink 2013 & NCLT & NCLAT Rules,
2016) held on 20.8.2016
Study Circle Meetings Held on [Link] PCS Help Line on FEMA held on
19.6.2016 on Board Report Home/NewsEventsandAn- 24.8.2016
and Notice and also on Corpo- [Link] Capacity Building Session on
rate Governance Report and Applicability of CPC, CrPC &
other Disclosures in Annual allied laws on NCLT proceedings
Report. held on 26.8.2016
Study circle meetings held on Empowerment Series on GST –
7.8.2016 on Preparation and Filing Overview & Opportunities held
Before Statutory Authorities: on 29.8.2016

KANPUR CHAPTER
NCLT, RD Etc. and also on
Recent Changes in Company Law.
On the same day other study Programme QR Code/Weblink
circle meetings were held on Flag Hoisting on Independence [Link]
“Adjudication of Service Tax” Day 15.08.2016 Flag%20Hoisting%[Link]
and on “Introduction of Goods
& Service Tax”.
Full-Day Workshop held on
3.7.2016
Seminar on NCLT / NCLAT [Link]
Campus Placement for Mem- and President's visit at Kanpur Users/Seminar%[Link]
bers and Students Held on Chapter office 28.8.2016
31.7.2016
Independence Day Celebration
Held On 15.8.2016

I
CHARTERED SECRETARY SEPTEMBER 2016 145
NEWS FROM THE INSTITUTE & REGION

MODINAGAR CHAPTER
Programme QR Code/Weblink
Study Circle Meeting [Link]
Programme QR Code/Weblink
Study Circle Meeting on GST NA
held on 28.8.2016

SOUTHREN INDIA REGIONAL COUNCIL

Programme QR Code/Weblink HYDERABAD CHAPTER
Programme QR Code/Weblink
Seminar Held On Foundation [Link]
Day Programme-on 31.7.2016 SIRC_Proceedings_FndDayPro- Interactive Session with CS [Link]
Dinesh Chandra Arora, Activity/[Link]
gandSem_31072016.pdf
Secretary, the ICSI on
31.7.2016

Press Meet with President, ICSI

on 3.8. 2016
Study Circle Meeting 09.08.2016 [Link]
on Latest Updates on Sales Tax ules/Proceedings_SCM_Meetin- Panel Discussion on Gender
gon_09082016.docx Diversity in Corporate Board
Room held on 3.8.2016:

Meeting on Income Declaration

Scheme (IDS)-2016 held on
4.8.2016

AMRAVATI CHAPTER ICSI - GST& CSR 5K WALK

held on 21.8.2016
Programme QR Code/Weblink
Full day Seminar on Insolvency [Link] Programme on SEBI Financial
& Bankruptcy Code, sem%[Link] Educational Workshop held on
Companies (Amendment) Bill 24.8.2016
2016, Boards Report, Goods &
Service Tax (GST) held on
26.8.2016
MYSORE CHAPTER
Programme QR Code/Weblink

BENGALURU CHAPTER Seminar on Goods & Service

Tax Act (GST) Jointly with CII
[Link]
ChapterActivities/SeminarPDP.
Programme QR Code/Weblink & Study Circle Meeting aspx
Van Mahotsava [Link]

Half Day Seminar [Link] Independence Day [Link]

Celebrations ChapterActivities/
[Link]

Joint Seminar [Link]

Snapshots of the above [Link]

mentioned programmes ChapterActivities/Snapshots.
aspx
Full Day Seminar [Link]

146 I
SEPTEMBER 2016 CHARTERED SECRETARY
 NEWS FROM THE INSTITUTE & REGION
PALAKKAD CHAPTER
Programme QR Code/Weblink
Full Day Conference for [Link]
Programme QR Code/Weblink Members & Students on WRITE%20UP_1.08.2016%20
Independence Day [Link] "Company Secretary- Be the TO%[Link]
Celebrations [Link] Change" held on 4.8.2016

43rd Foundation day [Link]

Celebration held on 4.8.2016 WRITE%20UP_1.08.2016%20
Session On Investments, [Link] TO%[Link]
Loans And Deposits Under [Link]
Companies Act 2013

Study Circle Meeting on [Link]

“Career Opportunities in WRITE%20UP_1.08.2016%20
Government Sector” held on TO%[Link]

SALEM CHAPTER
5.8.2016

Programme QR Code/Weblink
Special Lecture on the [Link]

BHAYANDER CHAPTER
Companies Act, 2013 : [Link]

Programme QR Code/Weblink
Full Day Semimar on “National [Link]
Company Law Tribunal - Law [Link]
& Practice” held on 28.08.2016
SANGAMAM - One Day Joint [Link]
Seminar Activities/[Link]

PUNE CHAPTER
Programme QR Code/Weblink

WESTERN INDIA REGIONAL COUNCIL

Study Circle Meeting on [Link]
“Recent Changes in Labour Chartered_
Laws” Secretary_21_08_31_08_2016.pdf
Programme QR Code/Weblink
“1st NCLT Clinic” program of [Link]
ICSI-WIRC held on 14.08.2016 Year%202016/August%20CSJ.
pdf
Program on Corporate Laws – Workshop on “Knowledge [Link]
Emerging Career Avenues held Refresher Course on Critical CHARTERED_SECRETARY_%20
on 20.08.2016 at Nashik Aspects of Companies Act, 01st_TO_10th_08.pdf
2013” (A Series of Four
ICSI-WIRC PCS Study Circle Workshops)
Meeting on Practical Aspects of
GST held on August 30, 2016

AHMEDABAD CHAPTER RAJKOT CHAPTER

Programme QR Code/Weblink Programme QR Code/Weblink
Half Day Seminar on “Goods & [Link] Celebration of the [Link]
Service Tax - An Endeavour to AUGUST_21.08.2016%20 Foundation programme of the Foundation%20Day%[Link]
comprehend The GST TO%[Link] Rajkot Chapter on 17.08.2016.
Trajectory” held on 27.8.2016

Study Circle Meeting on “World [Link] THANE CHAPTER

Economy vs. India Changing Portals/25/11.08.2016%20 Programme QR Code/Weblink
World Order” held on to%[Link]
17.8.2016 Seminar on NCLT & NCLAT [Link]
Rules on 20.8.2016

I
CHARTERED SECRETARY SEPTEMBER 2016 147
 For further information/clarification, please write at email id csbf@[Link] or contact Mr. Saurabh Bansal, Executive on
telephone no.011-45341088.

148 I
SEPTEMBER 2016 CHARTERED SECRETARY
Miscellaneous
Corner
6
n ETHICS & CODE OF CONDUCT CORNER
n GST CORNER
n PCS CORNER
n 17TH NATIONAL CONFERENCE OF PRACTISING COMPANY SECRETARIES
n BRAIN TEASERS
n 41ST REGIONAL CONFERENCE OF COMPANY SECRETARIES
n 44TH NATIONAL CONVENTION OF COMPANY SECRETARIES

I
CHARTERED SECRETARY SEPTEMBER 2016 149
 GST CORNER
ETHICS AND CODE OF CONDUCT CORNER

FREQUENTLY ASKED QUESTIONS ON PROFESSIONAL AND OTHER MISCONDUCT IN RELATION TO MEMBER OF THE
INSTITUTE IN SERVICE UNDER THE FIRST AND SECOND SCHEDULE TO THE COMPANY SECRETARIES ACT, 1980

Q1. Can a member in employment share emoluments of the imprisonment for a term not exceeding six months.
employment with any person? Q7. What happens if as a result of his action, a member of the
Ans No, a member of the Institute in employment cannot share his Institute brings disrepute to the profession or the Institute?
emoluments of the employment undertaken by him, with any other person Ans If a member of the Institute, whether in practice or not, in the opinion
not even a member of the Institute. of the Council brings disrepute to the profession or the Institute, as a
Both direct and indirect sharing of the emoluments is prohibited under Item result of his act or omission, whether the same relates to his professional
(1) of Part II of the First Schedule to the Company Secretaries, Act, 1980. work or not, or such act or omission, does not fall under any of the items
However, it may be noted that under Part I of the First Schedule, a of the First and Second Schedule to the Company Secretaries Act, 1980,
member in practice can share the fee, commission or brokerage or profits the member shall be deemed to be guilty of other misconduct under Item
with any other member of the Institute who is his partner. (1) of Part IV of the First Schedule to the Company Secretaries Act, 1980.
Q2. Can a member in employment accept any secret benefit from Q8. Is a member of the Institute, bound to follow provisions of the
employment? Company Secretaries Act, 1980, the Regulations made
Ans No, a member of the Institute in service cannot accept or agrees to thereunder and the guidelines issued by the Council?
accept any secret benefit from the employment, such as any part of fees, Ans Yes, a member of the Institute, whether in practice or not, is bound
profits or gains from a lawyer, a Company Secretary or broker engaged to follow the Company Secretaries Act, 1980 (including the Rules), the
by such employer, by way of commission or gratification. It is prohibited Regulations made thereunder and the Guidelines issued by the Council
under Item (2) of Part II of the First Schedule to the Company Secretaries of the Institute from time to time. Contravention of the same amounts to
Act, 1980. professional misconduct under Item (1) of Part II of Second Schedule to
Q3. Who can act as Fellow of the Institute? the Company Secretaries Act, 1980.
Ans A member, whose name has been enrolled in the Register of Q9. Can a member of the Institute in employment disclose
Members of the Institute as Fellow member, can only act as a Fellow confidential information acquired in the course of his
member of the Institute. employment?
Item (1) of Part III of the First Schedule to the Company Secretaries Act, Ans No, a member of the Institute in employment cannot disclose
1980 prohibits a member, whether in practice or not, to act as a Fellow confidential information acquired in the course of his employment. He is
Member of the Institute if he is not a Fellow member. expected to maintain confidentiality of any information which may cause
Q4. Are the members bound to supply the information called for harm to the employer if disclosed to any undesirable person or outsider.
or to comply with the requirements asked for by the Institute Disclosure of the same amounts to professional misconduct under Item
and its various authorities? (2) of Part II of the Second Schedule of the Company Secretaries Act,
Ans Yes, it is the duty of a member, whether in practice or not, to supply 1980.
information called for or to supply the requirements as asked for, by the Q10. Can a member include particulars knowing them to be false in
Institute, Council or any of its Committee and other authorities such as any information, statement, return or form, to be submitted to
Director (Discipline), Board of Discipline, Disciplinary Committee, Quality the Institute, Council/Committee and other authorities?
Review Board or the Appellate Authority as constituted under the Ans No, a member of the Institute, whether in practice or not, cannot
Company Secretaries Act, 1980. Non-compliance of the same would include any particulars which he knows it to be false, in any information,
amount to professional misconduct under Item (2) of Part III of the First statement, return or form to be submitted to the Institute, Council or any
Schedule to the Company Secretaries Act, 1980. of its Committees, Director (Discipline), Board of Discipline, Disciplinary
Q5. Can a member give information knowing it to be false, Committee, Quality Review Board or the Appellate Authority.
while inviting professional work from another Company Secretary or It amounts to professional misconduct under Item (3) of Part II of the
while responding to tenders or enquiries or while advertising Second Schedule of the Company Secretaries Act, 1980.
through a write up? Q11. Can a member of the Institute defalcates or embezzles
Ans No, a member of the Institute, whether in practice or not, cannot give moneys received in his professional capacity?
any information which he knows it to be false, while inviting professional Ans No, a member of the Institute, whether in practice or not, cannot
work from another Company Secretary or while responding to tenders or defalcate or embezzle moneys received by him in his professional
enquiries or while advertising through a write up, or anything as provided capacity as the same amounts to professional misconduct under Item (4)
for in items (6) and (7) of Part I of the First Schedule to the Company of Part II of the Second Schedule to the Company Secretaries Act, 1980.
Secretaries Act, 1980, as the same would amount to professional Misappropriation of funds received in professional capacity by a member
misconduct under Item (3) of Part III of the First Schedule to the Company of the Institute, would amount to misconduct under this Item.
Secretaries Act, 1980. Q12. What happens if a member of the Institute is held guilty by any
Q6. What happens if a member of the Institute is held guilty by any civil or criminal court for an offence which is punishable with
civil or criminal court for an offence which is punishable with imprisonment for a term exceeding six months?
imprisonment for a term not exceeding six months? Ans A member of the Institute, whether in practice or not, shall be
Ans A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, under Part III of the Second
deemed to be guilty of other misconduct, under Item (1) of Part IV of the Schedule to the Company Secretaries Act, 1980, if he is held guilty by
First Schedule to the Company Secretaries Act, 1980, if he is held guilty any civil or criminal court for an offence which is punishable with
by any civil or criminal court for an offence which is punishable with imprisonment for a term exceeding six months.

150 I
SEPTEMBER 2016 CHARTERED SECRETARY
 • Additional Excise Duties

GST CORNER
GST CORNER •
•
CVD (levied on imports in lieu of Excise duty)
SAD (levied on imports in lieu of VAT)
GST Updates • Excise Duty levied on Medicinal and Toiletries
preparations,
• RajyaSabha approved the Constitutional (122nd • Surcharges and Cesses
Amendment) Bill, 2014 on 3rd August, 2016 and LokSabha • Central Sales Tax
on 8th August, 2016.
• Following is the state-wise status of ratification of the Bill as At State level
on date : • VAT/Sales tax
1. Assam (12thAugust, 2016) • Entertainment tax (unless it is levied by the local bodies)
2. Bihar (16thAugust, 2016) • Luxury Tax
3. Jharkhand (17thAugust, 2016) • Taxes on lottery, betting and gambling
4. Himachal Pradesh (22ndAugust, 2016) • Entry tax not in lieu of Octroi
5. Chhattisgarh (22nd August, 2016) • Cesses and Surcharges
6. Gujarat (23rdAugust, 2016) Alcohol for human consumption has been kept out of purview
7. Madhya Pradesh (24thAugust, 2016) of GST. Petroleum and petroleum products shall be subject to
8. Delhi (24thAugust, 2016) GST on a later date based on recommendation of GST Council.
9. Nagaland (26thAugust, 2016)
10. Maharashtra (29thAugust, 2016) Some Interesting Facts
11. Haryana (29thAugust, 2016) • Various countries follow different types of models (40) as
12. Telangana (30th August, 2016) per their own legislations / practices
13. Mizoram (30th August, 2016) • In Australian Model, tax is collected by the Centre and
14. Sikkim (30th August, 2016) distributed to the States
• In Canadian Model, there are three variants of taxes
15. Goa (31st August,2016)
• In India, GST rate will be decided under the GST law but
16. Odisha (1stSeptember, 2016)
will be collected by both, Union and States, along with
Integrated GST on inter-state supplies levied by Union
• With 16 States ratifying the Bill, it moves forward for • In Indian GST ,while exports will be zero rated, imports will be
President’s assent. subject to levy of integrated Goods & Services Tax (IGST)
• Supply of Goods and Services will include supply without
GST in News consideration in the Indian GST Model
• Governmentis hopeful that all States would table respective
GST Bills in the Winter Session
• Existing benefitsgiven to hill , North-East States may Invitation to Participate
continue under GST regime
• Ministry of Finance and Empowered Committee on 16th ICSI National Awards for Excellence in Corporate
GST holds interactive meetings with various trade and Governance
professional bodies to seek suggestions on Model GST Law In its pursuit to recognize the best governed companies, ICSI
• Over 30 cesses, surcharges to push GST rate on higher unfolds the “16th ICSI NATIONAL AWARDS FOR EXCELLENCE
side IN CORPORATE GOVERNANCE”. The Awards are committed
• GST platform is likely to become analytics powerhouse to foster and reward globally acceptable corporate
• CBEC sets up Panel to smooth road to GST governance among Indian Companies.
• More states riding on Goods and Services Tax Network The jury comprising distinguished experts from various fields
(GSTN) technology to roll out GST reform under the chairmanship of Hon’ble Justice of India, Mr. V N
• Trade and Industry chambers have voiced that GST rate at Khare, former Chief Justice of India will adjudge the winners.
18% may be revenue neutral
•
•
50% of states expected to approve GST by early September
West Bengal deters ratification of Constitutional
AWARD CATEGORIES & ELIGIBILITY
Amendment Bill. l Two best governed companies
• Government is working hard to have GST introduced from
April, 2017 but also expects that it may be delayed by few l Certificate
of Recognition to five
months if industry is not fully prepared companies for exemplary
corporate governance practices
Salient Features of GST adopted
Various indirect taxes would be subsumed into a single indirect
tax i.e. Goods & Services Tax. Taxes proposed to be subsumed
Eligibility for participation: All
under GST are:
Listed entities
At Central level
• Central Excise Duty
• Service Tax Last date for Participation 25th September, 2016

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CHARTERED SECRETARY SEPTEMBER 2016 151
PCS CORNER

Proceedings of the 17th National Conference of Practising Company

Secretaries on the theme PCS @ Startup – Accelerate – Outpace held at
Welcome Heritage Glenview Resort Kasauli, HP during August 12-13, 2016

Day 1: August 12, 2016

INAUGURAL SESSION CS P K Mittal apprised the participants about the nuances of Drafting,
Appearances and Pleadings before various quasi judicial authorities.
Hon’ble Shri A R Kohli, Former Governor of Mizoram, inaugurated the
17th National Conference of Practising Company Secretaries on the CS (Dr.) Sanjiv Agarwal, made an elaborate presentation covering the
theme ‘PCS @ Startup – Accelerate – Outpace’. Emphasizing on various provisions of the model GST law and the role of Company
Good Governance Shri Kohli said, “With rights comes the duties and Secretaries therein.
obligations and Good Corporate Governance leads to good business
regime”. He congratulated the ICSI for organizing this Conference as CS (Dr.) Gourav Vallabh in his masterly manner deliberated upon the
it offered a great platform for enlightening and capacity building of the basics of Financial Risk Management and importance thereof for
professionals in key areas which would benefit the corporate as well Corporate. He explained the need for Company Secretaries to have an
as the society at large. understanding of the risk management procedures in a very lucid
manner.
CS Mamta Binani, President, ICSI delivering her Presidential Address
covered the opportunities and challenges for company Secretaries CS Subhash Setia, Company Secretary, DLF Limited spoke about the
posed by the recent regulatory prescriptions. She also informed all Real Estate (Regulation and Development) Act, 2016 and the
present at the Conference about the efforts made by the Institute opportunities for Practicing Professionals. He also explained that the
during the last few months towards seeking more recognitions for Real Estate is the second largest sector of the country in terms of
Company Secretaries. employment generation and there are huge opportunities for Company
Secretaries both in Employment as well as in Practice, in the Real
CS Ashish Garg, Council Member, ICSI & Chairman, PCS Committee Estate Sector.
introduced the theme for the Conference.
CS Upender Gupta highlighted the enormous scope for Practice under
CS Vineet K. Chaudhary, Council Member, ICSI & Programme the upcoming law on Goods and Services Tax. He stressed upon the
Director for the Conference delivered the welcome address and need for Capacity Building of the members in the field of GST.
thanked all the delegates and their family members for participating in
the Conference. The session was summed up with a question answer session by the
audience and CS Satwinder Singh, Council Member, ICSI proposed a
CS Manish Gupta, Chairman, NIRC of ICSI and Programme formal vote of thanks.
Co-ordinator introduced the Chief Guest at the Inaugural Session.
SECOND TECHNICAL SESSION
CS Gurvinder Sarin, Chairman, Chandigarh Chapter welcomed all The second session was chaired by CS U K Chaudhary, Past
present at the Conference and arranged for release of the Conference President, ICSI and Senior Advocate. CS Sanjay Grover, Partner,
Souvenir cum Backgrounder and other publications. Sanjay Grover & Associates, CS Saurabh Kalia, Partner, Sasttra Legal
and Shri Anil Kumar Bhardwaj, Advisor (Eco.), Competition Commission
CS Dinesh C. Arora, Secretary, ICSI proposed a hearty vote of thanks of India addressed the participants at the session.
at the end of the Inaugural Session.
CS S K Agrawala, Council Member, ICSI introduced the dignitaries on
FIRST TECHNICAL SESSION the dais and also arranged for release of publications.
The first technical session was a Panel Discussion on Startup India –
Professional Opportunities for PCS and was addressed by CS Anil CS Sanjay Grover, made a presentation on the proposed amendments
Murarka, Past President, ICSI, CS P K Mittal, Chief Advisor, PKMG in the Companies Act, 2013 under the Companies (Amendment) Bill,
Law Chambers, CS (Dr.) Sanjiv Agarwal, Partner, Agarwal Sanjiv & 2016.
Company; CS (Dr.) Gourav Vallabh, Professor, XLRI Jamshedpur and
CS Subhash Setia, Company Secretary, DLF Limited. The Session CS Saurabh Kalia, Partner, Sasttra Legal, discussed the provisions of
was chaired by CS Upender Gupta, IRS, Commissioner (GST). the Companies Act, 2013 relating to NCLT and NCLAT and shared the
practical nuances of representing the clients before the NCLT and
CS Ahalada Rao V., Council Member, ICSI, introduced the faculties on NCLAT. He emphasized the role of Company Secretaries in NCLT and
the dais and set the tone of the discussions during the session. NCLAT.
CS Anil Murarka spoke about the landmark reforms under the
Insolvency and Bankruptcy Code, 2016 enabling India to rise in Shri Anil Kumar Bhardwaj, Advisor (Eco.), Competition Commission of
rankings of Ease of Doing Business. He also presented the India spoke about the expectations of the regulator and other
opportunities for Professionals under the Insolvency Law. stakeholders from professionals like Company Secretaries. Shri

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 PCS CORNER
Bhardwaj explained that competition is necessary in every field to get audience.
the better option, competition increases the quality of life in the
country. CS Ranjeet Kumar Pandey, Council Member, ICSI proposed a formal
vote of thanks.
CS Amit Gupta, Member, NIRC of ICSI proposed a formal vote of
thanks at the end of the session. VALEDICTORY SESSION
Mr. Justice M M Kumar, President, National Company Law Tribunal
was the Chief Guest at the Valedictory Session of the Conference. Ms.
Day 2: August 13, 2016 Kiran Oberoi Vasudev, Chairperson, Quality Review Board, ICSI was
INTERACTIVE SESSION the Guest of Honour.

The Second day of the conference started with an Interactive Session CS Mamta Binani, President, ICSI, CS Vineet K. Chaudhary,
for Practising Company Secretaries. CS Mamta Binani, President, Programme Director and Council Member, ICSI, CS Ashish Garg,
ICSI briefly informed the recent initiatives taken by the Institute. The Chairman, PCS Committee and Council Member, ICSI addressed the
members raised a few of their concerns and gave their suggestions for delegates. CS Manish Gupta, Programme Co-ordinator and Chairman,
the betterment of the profession. All queries raised were satisfactorily NIRC of ICSI introduced the Chief Guest and CS G S Sarin,
answered. Programme Facilitator and Chairman, Chandigarh Chapter of ICSI
introduced the Guest of Honour at the session. CS Dinesh C. Arora,
THIRD TECHNICAL SESSION Secretary, ICSI gave the concluding remarks and proposed a vote of
The third session of the National Conference was on Spiritual thanks.
Wellbeing and Self Motivation for Professionals. CS Ashish Doshi,
Council Member, ICSI introduced the speakers at the session. Dr. Release of Publications
Gopal Krishan Nair and Ms. Anukrishna P K were the speakers at the The following publications were released at the National Conference:
session. The session started with the chanting of the sacred word 1. Souvenir cum backgrounder
‘Oum’ and deliberations on the need for having a healthy body and 2. Guidance Note on Code of Conduct for Company Secretaries
soul. There was a short session on yoga for relaxing the mind and 3. Udaan
body. 4. Setting up of Practice by Company Secretaries
5. CS in Practice-Areas of Recognition
CS K V Singhal, Vice Chairman, Chandigarh Chapter of ICSI proposed 6. CD containing ICSI Publications
a formal vote of thanks at the end of the session. 7. Brochure-THE CONFIDENT ‘YOU’
8. Guidance Note on AOC-4
FOURTH TECHNICAL SESSION 9. Guidance Note on Secretarial Audit (Release 1.3)
The fourth technical session was a Panel Discussion on Ease of 10. Referencer on Board’s Report-Revised Edition
Doing Business in India – Facilitations and Obstructions and was 11. FAQs on Section 8 companies
addressed by CS Pavan Kumar Vijay, Past President, ICSI, CS 12. SEBI (LODR) Regulations 2015 – Debt Securities
Nesar Ahmad, Past President, ICSI and Shri Anupam Malik, 13. NCLT and NCLAT – Manual
Additional Labour Commissioner, State of Haryana. 14. Brochure for knowledge Essentiality workshops on NCLT and
NCLAT - Law and Practice.
Shri Rajesh Sharma, Government Nominee on the Council of ICSI 15. Golden Leafs - ICSI National Conventions (1972 - 2015)
introduced the speakers at the session and delivered the opening
remarks.
OBITUARIES
CS Pavan Kumar Vijay deliberated on the various issues relating to “Chartered Secretary” deeply regrets to record the sad
the ease of doing business. He explained the use of technology in the demise of the following Members:
sphere of doing business. He also explained to the participants that CS Vallabhdas Jamnadas Ashar (07.05.1932 – 12.10.2013),
now-a-days government is moving completely to electronic mode, a Fellow Member of the Institute from Mumbai.
whether it comes to registration of a company or getting approvals CS Karni Dan Baheti (10.04.1938 -15.02.2015), a Fellow
Member of the Institute from New Delhi. He was Chairman of
etc. NIRC in the year 1988.
CS Hem Raj Singal (26.10.1939 -20.12.2012), a Fellow
CS Nesar Ahmad spoke about Facilitations and Obstructions in doing Member of the Institute from Delhi.
business in India. He also spoke about the Government’s flagship CS Chandravadan B Shah (21.01.1934 – 19.06.2016), a
Fellow Member of the Institute from Ahmedabad.
programmes such as Make in India, Skill India, etc. CS Tirukallam Srinivasan Raju (10.01.1958 – 31.07.2016), a
Fellow Member of the Institute from Chennai.
Shri Anupam Malik explained the need and importance of complying
with the Labour Laws. He also spoke about the third party inspection May the almighty give sufficient fortitude to the bereaved family
of compliances with the labour laws, which is to be done by Company members to withstand the irreparable loss.
Secretaries. May the Departed souls rest in peace.

The session was summed up with a question answer session by the

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CHARTERED SECRETARY SEPTEMBER 2016 153
41ST REGIONAL CONFERENCE

8 PCH for Members

16 PDP for Students

Theme:
Rewarding Avenues : Reaping Benefits
Growing by Leaps and Bounds

Friday & Saturday, October 14 & 15, 2016

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SEPTEMBER 2016 CHARTERED SECRETARY
 41ST REGIONAL CONFERENCE

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CHARTERED SECRETARY SEPTEMBER 2016 155
44TH NATIONAL COVENTION

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 44TH NATIONAL COVENTION

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CHARTERED SECRETARY SEPTEMBER 2016 161
 SPECIAL ISSUES OF CHARTERED SECRETARY
It is proposed to bring out the following special issues of Chartered Secretary during the
remaining period of 2016:
2. LODR (October, 2016 issue)
3. Competition Law (November 2016 issue) and
4. Social Audit and CSR (December 2016 issue).
Members and others having expertise on the aforesaid subjects are welcome to contribute
articles for consideration by the Editorial Advisory Board for publication in the said special issues.
The articles may kindly be forwarded to:
The Director (Publications), the ICSI, 22, Institutional Area, Lodhi Road, New Delhi – 110003.
e-mail: [Link]@[Link]

* By 30th November, 2016 – Not less than 25 %

By 31st March, 2017 – Not less than 50 % less already paid
By 30th September, 2017 – 100% less already paid

* Updated
**Source: [Link]

162 I
SEPTEMBER 2016 CHARTERED SECRETARY
 size: 180mm (W) x 240mm (H)

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