This article is an attempt to list out the provisions/compliances by the applicable entities, in respect of the provisions of National Financial Reporting Authority, constituted under provisions of Section 132 of the Companies Act, 2013.     

A specific thrust is put-in to see as to which type of entities, will come under the scope “Bodies Corporate (Other than Companies)”. 

The National Financial Reporting Authority [NFRA], was constituted with effect from 01.10.2018, and working provisions, functions, have been notified vide NFRA Rules, Dt: 13.11.2018. 

Read more: NFRA Rules - Will they apply to LLP - Companies Act

The Insolvency Committee (Committee) constituted by Ministry of Corporate Affairs submitted its first report in March 2018 which recommended amendments to Insolvency & Bankruptcy Code (IBC/Code) based on the experience gained from implementation of code. The Committee decided to submit its recommendations on cross border insolvency separately given the complexity of the subject matter and requirement of in-depth research on the matter.

The existing provisions of the code Section 234 and Section 235 (entering into bilateral agreements and issuance of letters of request to foreign courts by Adjudicating Authorities) do not provide a comprehensive framework for cross-border insolvency matters and in light of which the Committee recommended adoption of UNCITRAL Model Law on Cross Border Insolvency, 1997. UNCITRAL Model law was the most widely accepted legal framework to deal with cross border insolvency and legislation based on the Model law has been adopted in 44 countries in a total of 46 jurisdictions. UNCITRAL Model Law ensures full recognition of a country’s domestic insolvency law by giving precedence to domestic proceedings and allowing denial of relief under the Model Law if such relief is against the public policy of the enacting country.

Read more: Key Recommondations of Insolvency Commitee on Cross Border Insolvency

One of the famous quotes from Warren Buffet ‘Long ago, Ben Graham taught me that Price is what you pay; Value is what you get’. This statement is true not only from investor viewpoint but also from taxman viewpoint!

Income Tax Act, 1961 (‘Act’) contains provisions which focus primarily on value rather than nature of receipt, whether revenue or capital. Sec 2(22B) of the Act has defined the term ‘Fair Market Value’ (FMV) in relation to Capital Asset. However, reference to FMV is made in the Act in various scenarios and not limited to capital asset only though it was defined for such.

Read more: Fair Market Value - Not more and Not Less - Direct Taxes

The recent judgment of Hon’ble National Company Law Appellate Tribunal (NCLAT), New Delhi in the case of Binani Industries Limited v Bank of Baroda, has made significant observations on certain aspects pertaining to Insolvency & Bankruptcy Code, 2016 (IBC).  Though the judgement contains various aspects, decided by the Hon’ble NCLAT, in this article, we wish to deliberate on the aspect which is deliberated by Hon’ble NCLAT with respect to discriminatory or differential treatment among similarly placed creditors while submission of resolution plan by resolution applicant(s). The Hon’ble NCLAT has stated that differential or discriminatory treatment among similarly placed creditors is not what is envisaged under the IBC or its regulations. Before proceeding to further examine, let’s get the facts in place to appreciate the judgment.

Read more: Differential Treatment Inter se Creditors – Not Permissible