My learnings from dealing with insolvency cases
Rohil Malhan, a young, aspiring restructuring and insolvency professional shares his learnings from dealing with insolvency cases.
The learning experience of dealing with the Insolvency and Bankruptcy Code (IBC) goes beyond mere understanding of legal principles, as I discovered during my initial days of practical training. It entails more than just knowledge of the law or the process of resolving cases; it revolves around the constant need for reminders and adherence to compliance requirements.
It involves consistently sending timely correspondence, ranging from submitting Form A for advertisement to communicating with the Registrar of Companies and the Suspended Board of Directors. It is through these continuous and punctual interactions that the essence of IBC unfolds. More than the thrill of receiving a new case, it is the creation of a fresh email ID for Corporate Insolvency Resolution Process (CIRP) that brings a sense of freshness and rejuvenation.
The enormity of the learning experience lies in effectively crafting and dispatching accurate emails to the appropriate recipients within the specified timeframe. Although the objective of IBC is aimed at resolution, its success is often uncertain within the initial 60 days. The Resolution Professional (RP) can discern whether the case will ultimately proceed towards resolution or move towards the fate of liquidation. Liquidation, however, should not be discredited; it signifies the acknowledgement of the impossibility of reviving a particular factory or plant, when all hopes have been exhausted and someone else will make better use of those resources.
Yet another significant challenge arises in obtaining audit reports or the Transactional Record Analysis (TRA) Report within the designated timeline. Despite the commencement of the RP’s efforts and their team’s pursuit of these reports, the final version often fails to reach the office before the Prospective Resolution Applicants are at the podium. Nevertheless, this situation offers valuable lessons in people management skills and accomplishing tasks effectively and getting the task done by last moment.
In the fortunate circumstances of my first ten days of work, I had the opportunity to be involved in two CIRP cases and two Liquidation cases. I even visited the factory premises and affixed the required notices on the door. When entering a factory, one can witness the glimmer of hope in the eyes of its workers, along with their expectations that you, as a lawyer or a GIP, possess the ability to provide assistance even when all seems lost. This feeling reinforces the belief in the Indian legal system, which, despite public skepticism, still upholds the underlying principle that “JUSTICE WILL BE SERVED.
Also See: Commercial wisdom of CoC in approval or rejection of Resolution Plan
