Corporate Updates – 23-05-2017


In exercise of the powers conferred by Section 419, the President, NCLT hereby re-constitutes the Benches at New Delhi. There will be now 4 Benches at New Delhi comprising of Principal Bench, Division Bench ant two Single Benches. Further, the Single Benches headed by Shri R. Varadharajan, shall attend matters presently pending before it and all the matters related to Amalgamation (section 230-232 of Companies Act, 2013 and section 391-394 of Companies Act, 1956 below 50 Lakh paid up capital. Further, this Bench shall also attend the matters of amalgamation above 50 Lakhs paid up capital whenever assigned by Hon’ble President through Special Order. Thos order shall come into force with effect from 22nd May, 2017.


Reserve Bank of India has outlined the steps taken and those on the anvil post the promulgation of the Banking Regulation (Amendment) Ordinance, 2017. The amendments to the BR Act 1949, introduced through the Ordinance, and the notification issued thereafter by the Central Government empower RBI to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). It also enables the Reserve Bank to issue directions with respect to stressed assets and specify one or more authorities or committees with such members as the Bank may appoint or approve for appointment to advise banking companies on resolution of stressed assets. Immediately upon the promulgation of the Ordinance, the Reserve Bank issued a directive bringing the changes to the existing regulations on dealing with stressed assets. The Reserve Bank is working on a framework to facilitate an objective and consistent decision making process with regard to cases that may be determined for reference for resolution under the IBC. Reserve Bank has already sought information on the current status of the large stressed assets from the banks. The RBI would also be constituting a Committee comprised majorly of its independent Board Members to advise it in this matter.

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