How-To Guide

A secured creditor's priority over government dues is statutory, but it is not automatic. Section 26E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 confers priority only after the security interest has been registered, and a revenue department that has attached property can still defeat a lender that cannot produce the right record. The Bombay High Court's judgment of September 11, 2026 in Indian Overseas Bank v. S

Insolvency proceedings concerning the same corporate group routinely end up before different Benches of the National Company Law Tribunal. A corporate debtor is admitted where its registered office sits, while a creditor files against the personal guarantor wherever it finds a convenient forum. The Code prefers a single forum, and the NCLAT has now confirmed that the President's transfer power under Rule 16(d) of the NCLT Rules, 2016 is not confined by territorial limits. Thi

Section 29A of the Insolvency and Bankruptcy Code, 2016 is the gatekeeping provision of the resolution process. It disqualifies defined categories of persons from submitting a resolution plan, and it reaches beyond the applicant to anyone acting jointly or in concert with him and to his connected persons. Eligibility disputes are among the most common grounds on which approved plans are challenged, and the NCLAT has recently confirmed that the list is exhaustive: a practising

Provident fund, pension and gratuity dues occupy a distinct position in an insolvency. Under Section 36(4)(a)(iii) of the Insolvency and Bankruptcy Code, 2016 (IBC), sums due to workmen and employees from these funds are excluded from the liquidation estate altogether. They are not a high-ranking claim inside the Section 53 waterfall; they sit outside it. The Supreme Court's order of August 31, 2026 in State Bank of India v. Manoj Kumar Das, arising from the Jet Airways liqui

When a Corporate Insolvency Resolution Process (CIRP) fails to produce an approved resolution plan, the company enters liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016 (IBC). Liquidation does not always mean piecemeal asset stripping. Under Regulation 32(e) of the IBBI (Liquidation Process) Regulations, 2016, the liquidator can sell the corporate debtor as a going concern, preserving the business, its workforce, and its enterprise value. This guide wal

The Insolvency and Bankruptcy Code (Amendment) Act 2026 has fundamentally changed how parties can withdraw from an admitted Corporate Insolvency Resolution Process (CIRP). The substituted Section 12A narrows the withdrawal window to a single phase: after the Committee of Creditors (CoC) is constituted but before the Resolution Professional issues the first invitation for resolution plans in Form G. This guide walks through each step of the withdrawal process under the new fra

Form AOC-4 is the statutory form under Section 137 of the Companies Act, 2013 through which every company files its financial statements with the Registrar of Companies (RoC). For the financial year ending March 31, 2026 (FY 2025-26), MCA has deployed revised AOC-4 e-forms on the V3 portal with effect from July 14, 2025, introducing mandatory CSR-2 linked filing, new Board's Report disclosures on POSH and maternity benefits, and signed PDF requirements for XBRL filers. This g

The Digital Personal Data Protection Rules, 2025, notified by the Ministry of Electronics and Information Technology (MeitY) on 13 November 2025, introduce the Consent Manager framework through Rule 4, which is scheduled to come into force on 13 November 2026. A Consent Manager is a registered intermediary that provides Data Principals (individuals whose personal data is processed) with an accessible, transparent, and interoperable platform to give, manage, review, and withdr

Tag-along and drag-along rights are among the most commercially significant provisions in any shareholders' agreement (SHA). They govern what happens when one shareholder wants to sell their stake to a third party, and their design directly affects the balance of power between majority and minority shareholders. This guide walks through the key considerations and drafting steps for both clauses under Indian law. Understanding the Two Rights Tag-Along Right (Co-Sale Right) A t

The information memorandum (IM) is one of the most critical documents in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). Prepared by the resolution professional (RP), it serves as the primary disclosure instrument that enables prospective resolution applicants to evaluate the corporate debtor and formulate their resolution plans. This guide walks through the legal requirements, practical steps, and key considerations in

When a company enters the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC), equity shareholders are often the most affected stakeholders. Their shares may be diluted or extinguished entirely under an approved resolution plan, and they rank last in the priority waterfall for distribution of assets. Despite this, shareholders have certain procedural rights during the CIRP that, if exercised early, can influence the outcome or a

Private placement of debt securities is one of the most widely used methods for listed companies to raise capital without the regulatory burden and public scrutiny associated with a public offering. Under the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations), the process involves a structured sequence of approvals, disclosures, and compliance steps. This guide walks through the complete process, from board approval to listing, with pra

When a Corporate Insolvency Resolution Process (CIRP) is closed on the basis of a settlement between the financial creditor and the corporate debtor, the settlement may include a liberty clause allowing the creditor to revive the proceedings if the debtor defaults. This guide explains the step-by-step process for a financial creditor to apply for restoration of insolvency proceedings when the corporate debtor breaches the terms of a court-recorded settlement. Step 1: Confirm

When a holder of securities passes away, the transfer of those securities to legal heirs is known as "transmission" rather than "transfer." SEBI's simplified framework, effective August 19, 2026, significantly reduces the documentation burden for legal heirs claiming transmission of shares, debentures, mutual fund units, and other securities. This guide walks through the process step by step, covering the Quick Transmission Processing (QTP) route for small claims, the simplif

Every listed entity in India must assess whether any of its subsidiaries qualifies as a "material subsidiary" under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The classification triggers specific governance, disclosure, and audit obligations that carry enforcement consequences if missed. Following the LODR amendments of 2026, which replaced "income" with "turnover" in the materiality test, companies need to revisit their assessme