IBC Updates_ IP Rajnish

सावजी भाई ढोलकिया
जन्म - 12 अप्रैल 1962 (अमरेली, गुजरात)
शिक्षा- चौथी पास
पत्नी - गौरीबेन ढोलकिया
संस्थापक- हरिकृष्ण ग्रुप
छह हजार करोड़ रु. की कंपनी लेकिन अपने ही MBA बेटे से करवाई मजदूरी, क्यों-
• 600 कर्मचारियों को दीपावली पर तोहफे में कार
• 900 को फिक्स्ड-डिपॉजिट दिए
• फ्लैट्स, जूलरी सेट,
• इंश्योरेंस पॉलिसी दे चुके हैं।
सूरत.
• तब सावजी भाई महज 12 साल के थे, जब उन्होंने सूरत पहुंचकर हीरा घिसने का काम शुरू किया था। उस समय सावजी भाई को तनख्वाह में महज 180 रुपए मिलते थे। आज उनकी कंपनी 6 हजार करोड़ रुपए से भी ज्यादा की है।
• हालांकि, इसके बावजूद अपने बेटे द्रव्या को जिंदगी का सबक सिखाने के लिए एक महीने के लिए केरल भेज दिया, वह भी केवल सात हजार रुपए देकर।
• द्रव्या ने अमेरिका से MBA किया था, लेकिन सावजी भाई चाहते थे कि उनका बेटा असल जिंदगी में मैनेजमेंट करना सीखे।
यहां भी रख दी 3 शर्तें
1. पहली, एक हफ्ते से ज्यादा कहीं काम नहीं करना है, मतलब अलग-अलग जगह का अनुभव लेना है।
2. दूसरी, सात हजार रुपए सिर्फ आपात स्थिति में ही खर्च करने हैं। यानी रोजमर्रा के काम के लिए उसे वहां कमाए पैसे ही इस्तेमाल करने हैं।
3. तीसरी, उसे कहीं भी अपने पिता का नाम या रसूख का इस्तेमाल नहीं करना है।
द्रव्या ने वहां फूड आउटलेट और जूतों की दुकान तक में काम किया।
सावजी भाई ने 12 साल पहले अपने भाई के बेटों को भी इसी तरह से दूसरे शहरों में काम करने के लिए भेज दिया था।
जानिए इस पर क्या कहना है सावजी भाई का
जब बच्चों के हाथ में पैसा होता है और उन्होंने किसी तरह की कोई आर्थिक परेशानी नहीं देखी होती तो ऐसे में
• संवेदनाओं,
• मानवीय मूल्यों
• और असल जिंदगी के संघर्षों
की सीख के लिए हमें इस तरह के रास्ते अख़्तियार करने पड़ते हैं। अगर जिंदगी में इस तरह के पाठ सीखने को मिल जाएं तो परिस्थितियों से निबटने के रास्ते इंसान को खुद-ब-खुद मिल ही जाते हैं।'
 खुद 10 साल तक हीरा घिसाई का काम किया
 सावजी भाई के पिता छोटे-से किसान थे।
 घर में पैसों की तंगी के चलते 12 साल की उम्र में पढ़ाई छोड़ दी
 और चाचा के पास सूरत आ गए। उन्होंने 10 साल तक हीरा घिसाई का काम किया।
 आज उनके ब्रांड 'कृष्णा डायमंड ज्वेलरी' के देशभर में 6500 से भी अधिक आउटलेट हैं।

ये है सावजी भाई का ध्येय
सावजी भाई के अनुसार जिंदगी में सफलता और काम में फायदा
1 अनुभव
2 और ज्ञान
को एप्लाई करने से मिलता है।
चाहे थोड़ा पढ़ा और सीखा हो, उसे ज्यादा से ज्यादा एप्लाई करना चाहिए।
सावजी भाई पहली बार 2014 में चर्चा में आए थे,

जब उन्होंने अपने कर्मचारियों को
 200 फ्लैट,
 491 कारें
 और 525 डायमंड जूलरी के सेट उपहार में दिए थे।

उसके बाद 2015-16 में भी हजारों कर्मचारियों को दीपावली पर तोहफे में कार-फ्लैट्स दिए।

Update from NCLT/IBC Cases by INSOLVENCY PROFESSIONAL RAJNISH BANSAL

👉 In a big relief to cash-starved firms, the government on Sunday said insolvency proceedings against fresh defaulters would remain suspended for up to one year and Covid-19-related debt would be excluded from the definition of default. The breather, however, will potentially hit financial and operational creditors hard and bleed their balance sheet, apart from temporarily depriving them of a credible mode of bad debt resolution. Lenders may be forced to seek regulatory forbearance on provisioning and capital requirements.

Initially, proceedings under the Insolvency and Bankruptcy Code (IBC) can’t be invoked for six months, which can then be extended by another six months, depending on the pandemic situation. There will be a special insolvency framework under section 240-A of the IBC. Already, in a bid to insulate small businesses from being dragged to the NCLT, the default threshold for triggering insolvency has recently been raised to Rs 1 crore from just Rs 1 lakh earlier.

Finance minister Nirmala Sitharaman said an ordinance will be promulgated soon to implement the proposed changes. However, proceedings in the cases already admitted will remain unaffected by the latest move. Data available with the IBBI show, proceedings in 1,961 cases were going on as of December 2019.

Despite risks of a sharp deterioration in credit quality of banks and cash flows of operational creditors due to the suspension of IBC initiation, many experts believe that given the unprecedented crisis, the existence of companies must take precedence over the resolution of stressed assets.

The suspension on fresh initiation of insolvency proceedings for one year is likely to increase provisioning for banks. “The advantage we were getting to refer a case to the National Company Law Tribunal (NCLT) was reversal of additional provisioning, now that option will not be there,” an MD & CEO of a bank who did not wish to be named told FE. According to the June 7, 2019, circular of the Reserve Bank of India (RBI), banks can reverse 20% provisioning for unresolved cases, after referring a case to the NCLT.

👉 Group Insolvency is a process in which claims against debtors of the same group are consolidated in a single resolution application to adjudicate upon by the Adjudicating Authorities ("hereinafter referred as AA"). It was difficult for the AAs across the country to adjudicate upon such resolution requests by the creditors due to the lack of provisions in Insolvency and Bankruptcy Code ("hereinafter referred as IBC"). The Companies Act 2013 itself provides for separate legal entity and preparation of consolidated financial statements of associate and subsidiary companies in the same form. The rule of 'separate legal entity' requires modifications owing to the increase in formation of Corporate Groups in Indian markets. The author in this article analyses the concept of Group Insolvency in brief in the light of judgments and the recommendations put forth by the Working Group formed by the Insolvency Bankruptcy Board of India.

United States Bankruptcy Laws, Bankruptcy Courts have consolidated proceedings along with assets and liabilities of the Debtors on the basis of criteria for substantive consolidation viz.

The degree of difficulty in segregating and ascertaining individual assets and liabilities;

presence or absence of consolidated financial statements;

the profitability of consolidation at a single physical location;

the commingling of assets and business functions;

the unity of interests and ownership between the various corporate entities;

The existence of parent and inter corporate guarantees on loans; and g. the transfer of assets of without formal observance of corporate formalities.

👉 You may send me any queries related to: [email protected].

IP CA. RAJNISH BANSAL
B.Com, FCA, DISA, CISA, I.P.
INSOLVENCY PROFESSIONAL
FORENSIC AUDITOR &
SYSTEM AUDITOR
M. 9999925301, 9899400108
E: [email protected]
Add: B-4/281-282,
Sector-7, Rohini
New Delhi- 110085
Date – 18/05/2020

Update from NCLT/IBC Cases by INSOLVENCY PROFESSIONAL RAJNISH BANSAL

👉 The National Company Law Tribunal (NCLT), Bengaluru, has ordered the winding up of Super Royal Holidays India Pvt. Ltd., Bengaluru, by declaring that the incorporation and conduct of business of the company was for “fraudulent objects” of ponzi scheme in the guise of offering holiday tour packages by collecting membership fees.

The Ministry of Corporate Affairs (MCA) sought the winding up of the company following the outcome of an investigation carried out after noticing that the company had deposited and withdrawn around ₹10 crore during the period of demonetisation in 2016.

“On perusing the financial statements of the company, it is clear that the money they collected by way of membership fees etc. was largely being pocketed by agents and director-cum-shareholders by way of commission, awards, dividends for directors, etc., leaving paltry remains for the so-called service [tour packages] for their members. Therefore, it is established that the company is running a ponzi scheme, as rightly contended by the MCA,” the tribunal held.

The tribunal also said that the company was “established exclusively for the benefit of the three promoters-cum-directors-cum-shareholders and their agents” and hardly any service was provided to most its customers.

The company enrolled members by collecting ₹11,000 for single membership, ₹22,000 for triple membership, and ₹33,000 for family membership. This life membership fee carried an offer of free tour packages for two nights/three days, to be availed within the next three years by paying a package cost ranging ₹375 to ₹4,800, depending upon location. The company claimed that it had around two lakh members, but could not produce the complete membership details before the authorities.

👉 Established under Sec 410 of Companies Act, NCLAT hears appeals against the orders of benches of NCLTs across the country under IBC and Companies Act as well as appealable orders of CCI. Till recently NCLAT had only one Bench at New Delhi. However, in a welcome move, vide notification dated 13 March 2020, Central Government announced that a bench has been constituted at Chennai which shall entertain appeals against orders passed by benches of NCLT in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Puducherry and Lakshwadeep. Therefore, NCLAT now has two benches ~ the Principal Bench at New Delhi and the Chennai Bench which shall be functional from 18 March 2020 but shall operate from New Delhi for some time.

The setting up of the Chennai Bench undoubtedly after the verdict of the Apex Court in WP (Civil) No 99 of 2018 - Swiss Ribbons Private Ltd Vs Union of India on 25 Jan 2019 is a positive step forward in ensuring that NCLAT is considered an "efficacious" remedy. However, there shall still be exceptions where High Courts have stepped in and may continue to step in what is the ambit of NCLAT.

This critique therefore is an attempt to analyse the setting up of Chennai Bench of NCLAT on the basis of the verdict of the Apex Court in Swiss Ribbons supra, established principles whereby High Courts can step in even when a forum for statutory appeal has been provided for in exceptional cases, and some case laws where High Courts have intervened and can continue to intervene. It is in the interests of the entire fraternity of IPs that NCLAT which has delivered some landmark judgments involving substantial questions of law becomes stronger by the day and intervention of High Courts under Article 226 and 227 would be a rare exception rather than the rule. There is no denying the fact that had it not been for NCLAT, matters which are now being adjudicated in a couple of months would have taken a year or more in cases that land in High Courts. Lex dilationes semper exhorret. The other justification for NCLAT is that with the perpetual shortage of judges which plagues the entire Indian justice delivery system, NCLAT is a necessity and not a luxury for India.

👉 You may send me any queries related to: [email protected].

IP CA. RAJNISH BANSAL
B.Com, FCA, DISA, CISA, I.P.
INSOLVENCY PROFESSIONAL
FORENSIC AUDITOR &
SYSTEM AUDITOR
M. 9999925301, 9899400108
E: [email protected]
Add: B-4/281-282,
Sector-7, Rohini
New Delhi- 110085
Date – 17/05/2020