<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>SELECTED SYLLABUS – ECONOMY</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>CONTEXT:</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>The Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations for liquidation under the Insolvency and Bankruptcy Code (IBC) by which it effectively allowed the liquidator to assign or transfer a “not readily realizable asset” to any person in consultation with the stakeholders’ consultation committee.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>THE NEW REGULATIONS :</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• To ensure quick liquidation of companies which are unable to find bidders under IBC, the liquidator can “assign or transfer a not readily realizable asset” to any person.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• The said transfer must be done in consultation with the stakeholders committee.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• The IBBI has also cleared that the definition of “a not readily realizable asset” would include any assets of the corporate debtor, which could not be sold through the available options. </span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Financial creditors can, for the purpose of furnishing a record of default, submit their own book which establishes lapse of payment of debt by the corporate debtor.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Financial creditors can also attach a copy of any court or tribunal’s order which has, through an order, established that the company had defaulted on debt payments.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Insolvency regulator has also amended the regulation to allow certain creditors, who do not want to wait for the liquidation process to be over, to exit the process by assigning or transferring the debt due to them, to other creditors of the company.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>BENEFITS OF THE CHANGES IN LIQUIDATION NORMS:</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• It provides the flexibility. Earlier, the liquidator used to have limited options for assets which could not have been readily or advantageously sold due to their peculiar nature.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Speed up of the liquidation process.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Liquidation norms are likely to benefit real estate companies the most.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>CHALLENGES FOR THE NEW AMENDED REGULATIONS :</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Definition of “a not readily realizable asset” is contentious.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>• Allowing the liquidator to distribute the un-disposed of assets among stakeholders, with the approval of the adjudicating authority.This will lead to creditors, be they financial or operational, challenging the distribution of the assets, and claiming that one or the other party has been favored by the liquidator.</span></span></span></span></span></span></p>
<p style=”margin-bottom:13px”> </p>
<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:"Cambria","serif"”>Source: Indian Express</span></span></span></b></span></span></span></p>
<p style=”margin-bottom:13px”> </p>