Alternative Remedies For Operational Creditors In view Of Increase In Threshold For Filing CIRP

first_imgColumnsAlternative Remedies For Operational Creditors In view Of Increase In Threshold For Filing CIRP Akash Agarwal21 May 2020 5:31 AMShare This – xThe Union Finance Minister of India has on March 24, 2020 notified in the official gazette that the threshold for triggering insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (“Code”) stands increased with immediate effect from Rs.1,00,000/- to Rs.1,00,00,000/-. The reason for the increase of threshold is to prevent triggering of insolvency proceedings against…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginThe Union Finance Minister of India has on March 24, 2020 notified in the official gazette that the threshold for triggering insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (“Code”) stands increased with immediate effect from Rs.1,00,000/- to Rs.1,00,00,000/-. The reason for the increase of threshold is to prevent triggering of insolvency proceedings against the Micro, Small and Medium Enterprises (“MSME”) which are currently facing the heat of coronavirus pandemic. Union Ministry has increased the threshold limit to save a lot of businesses which are already facing a threat of default. This action will safeguard an economic meltdown by avoiding large scale insolvencies. It is pertinent to note that, before the increment in the threshold limit, the Operational Creditors significantly contributed in triggering insolvency proceedings under the Code. Appended is the table demonstrating the percentage of insolvency proceedings initated by the Operational Creditors and the Finanical Creditors.Credits: See at16 (identifying the Creditors triggering insolvency proceedings)  After the increment in the threshold limit, the Operational Creditors/Financial Creditors having claim less than 1,00,00,000/- will be estopped from triggering insolvency proceedings under the Code leaving the Creditors high and dry. Hence, such Creditors will now have to adopt remedies available under the MSME Act, file Summary Suits and/or Regular Suits for recovery of the outstanding payment by obtaining a money decree in alternate to the remedies under the Code. Moreover, amidst the financial distress faced by the enterprises due to Corona pandemic, the Government of India has proposed to introduce Section 10A under the Code, with the objective of suspending Section 7, Section 9 and Section 10 of the Code which deal with initiation of Corporate Insolvency Resolution Process (CIRP). The suspension of these sections will bar the Financial Creditors, the Operational Creditors and a Corporate Applicant seeking initiation of CIRP for a period of six months, but not exceeding twelve months. However, in light of Section 230 of the Companies Act, 2013 as amended from time to time, mere suspension of Sections 7, 9, and 10 of the Code does not take away the alternate remedy available with the Companies Act, 2013. The remedy under Section 230 of the Companies Act, 2013 provides for a compromise, composition or an arrangement between the company and any class of its creditors and members which continues to exist. According to the Rules under the Code, even if a petition filed by the Operational Creditor is admitted against the Corporate Debtor, the Operational Creditor cannot participate in the Committee of Creditors. As a result, the right to vote over matters of CIRP is confined to the Financial Creditors of the Debtor. On contrary, in context with the Companies Act, 2013 as per scheme of arrangement or compromise provided under Section 230(1), the Tribunal may order a meeting of the creditors or class of creditors, or of the members or class of members, as the case may be, and such meeting to be conducted in a manner as directed by the Tribunal. Thus, ‘creditor’ and every class of creditor i.e. unsecured, secured, statutory creditors, comes under the purview of Section 230 of the Companies Act, 2013 to arrive at a compromise with the Debtor. To aid the industries to run their businesses, the Hon’ble Prime Minister of India announced a stimulus package of Rs.20 lakh crores out of which Rs.3 lakh crore will be given to enterprises as collateral-free automatic loan. It is anticipated that such a financial package will benefit around 45 lakh small businesses. The loan will have a tenure of 4 years alongwith a moratorium period of 12 months. In addition to increment of the threshold limit for triggering the insolvency proceedings under the Code, on May 13, 2020, in view to protect the industries, the Union Finance Ministry of India enlarged the definition of MSMEs by revising the investment limit on the machinery and the turnover. This revision will give enterprises a larger scope to stay protected from defaulting and avail the benefits of the stimulus package. Appended table demonstrates the existing and revised definitions of MSMEs.In a scenario, where the Operational Creditor wants to recover its money, the Operational Creditor can make a reference under the MSME Act, 2006. As per section 15 of the MSME Act, the Debtor must make payment before the agreed time. In case of absence of such agreement, the Debtor must pay within 45 days from receipt of the goods and services. On failure to make the payment, the Debtor is liable to pay compound interest at three times the bank lending rate notified by Reserve Bank of India as per section 16 of the MSME Act. If the Debtor does not honor the payment against the goods and services supplied by the Operational Creditor, as per the Section 18 of the MSME Act, a reference can be made to the Micro and Small Enterprise Facilitation Council (MSEFC) in the prescribed form and it shall be decided within 90 days from the date of making such a reference. Therefore, this makes the adjudication process under the MSEFC, a speedy remedy for recovery of outstanding payment. Now, one should be aware about the Adjudication procedure under the MSME Act: Once a matter is referred to the MSEFC, online intimation is given to both parties. A chance for mutual settlement through conciliation. On failure of conciliation process, the MSEFC determines if the matter is to be continued as a case or to be rejected. If accepted as a case, it is referred to arbitration. MSEFC gives a final and binding award. The award is to be communicated to Interim Resolution Professional and Hon’ble National Company Law Tribunal (NCLT) during insolvency procedure, wherein the award holder is treated as a secured debtor. It is interesting that the award can also be made against foreign buyer, which is binding and enforceable. The execution of the award is as per provisions of Arbitration and Conciliation Act, 1996. As per Section 19 of MSME Act, the MSME Act provides stringent measures against the defaulter where the defaulter cannot appeal against the award unless the appellant deposits at least 75% of the award before filing an appeal. As per Section 28 of the MSME Act, the offences of the defaulter shall be tried by the Metropolitan Magistrate or Magistrate of First Class or courts of higher hierarchy. Therefore, because of stringent measures under the MSME Act, there are several benefits under the MSME Act which provides faster and most affordable process for the MSME-vendors. Operational Creditors are the most beneficial as MSME-vendors. One can file cases through online portal – MSME SAMADHAAN. The total amount due along with interest accrued during the period can be obtained without limiting to the Resolution plan and liquidation amount which cannot be availed under the Code. MSME can check the status through online portal. Moreover, under section 23 of the MSME Act, any interest paid by the defaulter to the applicant is not computed as income and is allowed as deduction. Subscribe to LiveLaw, enjoy Ad free version and other unlimited features, just INR 599 Click here to Subscribe. All payment options available.loading….Next Storylast_img read more

Trojan duo named Players of the Week for women’s tennis, women’s water polo

first_imgSteven Kramer | Daily TrojanTwo Trojans took home Player of the Week honors this week due to their weekend performances. Junior Gabby Smith was recognized on the women’s tennis team, while senior driver Stephania Haralabidis won the award for women’s water polo.Smith was named Pac-12 Player of the Week for the second time in her career on Monday, after she helped USC top UC Santa Barbara in its season opener last Thursday. Smith dropped her doubles match to start the day, but she rebounded with a momentum-shifting 7-6 (5), 6-0 victory in singles play. Smith is currently riding a six-match unbeaten streak, including an undefeated weekend at the National Collegiate Tennis Classic earlier this month. During the tournament, Smith defeated Arizona’s No. 18-ranked Lauren Marker 6-0, 6-3. Smith and her doubles partner, senior Zoë Katz, are also currently ranked No. 18 in the nation.Haralabidis then earned MPSF Player of the Week honors on Tuesday. The senior tallied an incredible 17 goals in five games over the weekend, as USC stormed to a perfect 5-0 record at the UCSB Winter Invitational. Haralabidis scored in every single game of the tournament and also set a new career high with nine goals in the final game against hosts No. 9 UCSB — which also matched a single-game MPSF record. She has now scored on 202 occasions as a Trojan, eighth most in program history. Three more goals will push herup to No. 7.Both players will look to defend their titles this weekend. Smith and the women’s tennis team will head to Auburn, Ala. for the ITA Kickoff Weekend on Saturday, while Haralabidis and women’s water polo will make a trip to Riverside for the Cal Baptist Invitational, which also begins on Saturday.last_img read more

With 11 of 13 players returning, SU volleyball poses offensive threat

first_imgSubscribe to the D.O. Sports NewsletterWant the latest in Syracuse sports delivered to your inbox? Subscribe to the D.O. Sports newsletter to read our best sports articles, sent to you every Friday morning.* indicates requiredEmail Address * The Daily Orange is a nonprofit newsroom that receives no funding from Syracuse University. Consider donating today to support our mission.After an injury-plagued start to 2019 led to four losses in Syracuse’s first five conference games, the Orange recovered with a five-game winning streak in late October and early November. They finished the season eighth of 15 teams in the Atlantic Coast Conference.Polina Shemanova was the driving force during the Orange’s best spell of the season, which included five-set wins over Boston College and Louisville. Shemanova led the ACC in points, points per set, kills and kills per set. Then a sophomore, she was named ACC player of the week for three consecutive weeks. But for the Orange’s season, that wasn’t enough.After making it to the NCAA tournament in 2018 for the first time in program history, Syracuse (12-13, 9-9 ACC) turned in a middling season plagued by injuries and inexperience. The Orange couldn’t seem to overcome early season woes, and their season turned into an unexpected “developmental year,” outside hitter Kendra Lukacs said.This year, due to the ACC’s coronavirus schedule adjustments, SU is set to play a shortened season with 10 conference games. With 11 of the Orange’s 13 players returning this fall, here’s a complete breakdown of the 2020 roster and what to expect from Syracuse.AdvertisementThis is placeholder textWho’s backIn 2019, the Orange’s roster was young — nearly half the roster spots were filled by freshmen, and Aliah Bowllan was the only senior regularly in the starting lineup. Now, with the Orange returning five of their six regular starters, expectations should be higher.Sophomore Marina Markova, who suffered a season-ending finger injury in mid-October, finished the year with the second-most aces per set in the ACC (0.46). Early in the season, she led SU in service aces and had the eighth most in the country. The outside hitter also found success at middle blocker during SU’s spell of blocking struggles.Alongside Markova will likely be middle blocker Abby Casiano, who recorded nine blocks and five kills in the Orange’s 3-2 win over Boston College. Head coach Leonid Yelin utilized various combinations of Markova, Casiano, Yuliia Yastrub and Dana Gardner as middle blockers last season — and all four will be back in 2020. Setter Elena Karakasi recorded 804 assists last season, and barring a few mishaps in her first season as a starter, she was perhaps the Orange’s most consistent player. As the season went on, Karakasi developed more on-court chemistry with outside hitters Ella Saada — who had the second most kills on the team — and most importantly, her roommate Shemanova. Shemanova attributes much of her success to her setter, and this season, the two should pick up with the same rhythm they left off with the end of 2019. Now a junior, Shemanova is coming off a 2019 season where she finished fifth in the nation for points per set and broke the Syracuse record for most kills in a single game (36) against Louisville on Nov. 3. Though she lacked consistency early on during the season, she made up for it in the latter half and the expectation is that she’ll only get better, Lukacs said last year.Polina Shemanova won ACC player of the week for three consecutive weeks last season, and is expected to continue her offensive rhythm in 2020. Corey Henry | Senior Staff PhotogrpaherWho’s goneThe Orange lost libero Bowllan and Lukacs to graduation, but will return the remaining 11 players from last season. Replacing the difficult digs that Bowllan made look routine will not be easy. She had 240 digs last season and averaged a team-high four per set, and served as “the leader of the defense,” assistant coach Derryk Williams said. Sophomore Berkley Hayes is Bowllan’s expected replacement, but in comparison to her fellow sophomores, Hayes rarely saw the court in 2019 — she had 27 digs in 61 sets last year. Hayes has big shoes to fill, though she was relatively consistent during her limited playing time as a freshman.When Bowllan missed nearly a month due to a right ankle injury, Lukacs filled in. Though she was only used sporadically throughout the season, she played a large role as a “senior leader” on the team, Williams said. This season, the Orange will turn to seniors Saada, Gardner and Yastrub, to fill those vacated leadership roles.SU also added two new players to fill those roster spots, freshmen Lauren Hogan and Naomi Franco. Facebook Twitter Google+ What to expectWith the offensive abilities of Shemanova, Markova, Saada and an emerging Casiano, paired with the growing chemistry the four have developed with Karakasi, SU will be a serious offensive threat.The Orange already have a superstar in Shemanova, and so long as she continues to show up in the game’s most clutch moments, the Orange will continue to impress offensively. When she gets into a rhythm, Shemanova is able to notch kills through as many as three blockers. “(You) cannot have five drivers in one car. You know what’s going to happen, and (our team is) not an exception for this,” Yelin said in 2019. “Shemanova is one who can make a difference and has to step up to the challenge that we have.”Though there isn’t an NCAA tournament this fall, the Orange can be a very dangerous side, if they show up defensively. Following the unexpected rebuild in 2019 and barring another injury plagued season, Syracuse’s more experienced 2020 team should outperform last year’s.center_img Published on August 30, 2020 at 9:59 pm Contact Roshan: [email protected] | @Roshan_f16 Commentslast_img read more

Irish Football Association to fight over FIFA disciplinary proceedings

first_imgNorthern Ireland’s football association says it’ll ‘robustly defend’ itself, after FIFA launched disciplinary proceedings over the wearing of poppies.Both the I-F-A and the Welsh FA are now being investigated – despite agreeing not to wear the symbol during this month’s internationals.England and Scotland are already facing charges.last_img