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What does the Supreme Court have to say about the Insolvency Code?

  • The Supreme Court has just upheld the constitutional validity of the Insolvency & Bankruptcy Code (or IBC in short) in its entirety. In what could be viewed as a victory for the Modi Government, which implemented the act in 2016, the code – which provides for a legal framework to resolve insolvency cases and release non-performing assets quickly, has stood tall against its biggest challenge till date. Stating that provisions within the law fulfilled its objectives, a bench of Justices RF Nariman and Navin Sinha dismissed a batch of petitions challenging various sections of the IBC. By quashing the petitions which challenged the law saying that it was discriminatory, 2 important implications have arisen. Firstly, Operational Creditors were of the opinion that the law was prejudiced against them and demanded that they be given an equal say in the resolution process as Financial Creditors, which was rejected by the Supreme Court. Secondly, the judgement also dashed all hopes of promoters bidding for their own companies. The petitioners, represented by former Attorney General of India and Senior Advocate Mukul Rohatgi had argued that by barring promoters from bidding for their own companies, the IBC was denying the promoters their fundamental right and forcing them to sell their company to new bidders. However, the Supreme Court was having none of it.

 

 

  • Troubled Private Lender Yes Bank finally seems to be coming out of the woods. While results declared by it for its 3rd quarter were a mixed bag, with Net Profits falling by 7% from its last fiscal and even missing analysts expectations, and NPAs rising on account of exposure of loans worth 2,530 crore Rs to IL&FS Group. On the upside, the bank saw growth in net interest income, advances and deposits and even witnessed a fall in provisions, which is good news. However, what seems to be exciting investors is the fact that Yes Bank on Thursday announced the name of its new MD & CEO thereby ending months of uncertainty and speculation. Deutsche Bank India’s CEO – Ranveet Gill is all set to head Yes Bank and his appointment will take effect from the 1st of March 2019. Current MD, CEO and co-founder Rana Kapoor will step down on 31st of January 2019 when his term ends as he was denied an extension of his term by the RBI. Buoyed on the back of this news, the shares of the 4th largest private lender surged 19% intraday but ended with a gain of roughly 9% at the close of yesterday’s trade. In today’s trade as well, after surging to hit a high of 234.50 in early morning’s trade, Yes Bank’s share ended at Rs 219.60 a piece which results into a 1.95% gain, this in spite of the overall market ending firmly in the red.

 

  • The richest Football clubs on the planet have been ranked by financial services firm Deloitte in its 22nd edition of the Football Money League report for 2019. Spanish giants Real Madrid is the highest revenue generating club in world football this year. With 3 consecutive Champions League titles, the club has earned a staggering 854.8 million $ in the 2017/18 season. Barcelona, the current leaders of the La Liga came in second with revenue of 785.5 million $. Rounding up the top 3 was Manchester United with revenue of 758 million $. United, which was the wealthiest club last year, has slipped down the league ladder and has been leapfrogged by 2 of its world rivals. The English Premier League dominated the list grabbing 6 out of the top 10 spots. Income from broadcasting was again the largest income stream comprising 43% of total revenue, followed by commercial revenue and match day revenue with totalled 40% and 17% respectively. The report went on to suggest that the top 20 highest earning clubs saw their combined revenue grow 6% to a record 9.4 billion $.

 

 

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