VALUATION AND INSOLVENCY

Paper Code: 
BCS 512
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

This course will enable the students to provide legal procedural and practical aspects of Valuation, Insolvency, Liquidation & Winding-up.

 

Course Outcomes (COs):

 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

title

BCS 512

Valuation and Insolvency

 

CO 181:Develop a comprehensive understanding regarding valuation of business in case of insolvency.

CO 182:Determine the role and duties of CIRP, IP, IRP and RP.

CO 183:Formulate strategies                for conducting meetings for preparation

and create Resolution plans and facilitate meetings of committee of creditors and also evaluate pre packed insolvency resolution process.

CO 184:Examine the features of Cross Border Insolvency and Voluntary Liquidation.

CO 185:Analyze               the           importance           of SARFESHI and DRT Act.  Evaluate provisions regarding Striking off and Restoration of Names of Company and LLP.

CO 186:Contribute effectively in course – specific interaction.

Approach in teaching:
Interactive Lectures, Discussion, Tutorials, Reading assignments, Interactive White Board, Incorporating technology in teaching
 

Learning activities for the students:
Self learning assignments, Effective questions

Class test, Semester end examinations, Quiz,  Assignments, Class interaction, Presentation, Case study analysis, Open ended questions, think-pair-share, Socratic seminar

 

12.00
Unit I: 

Overview of Business Valuation: Genesis of Valuation, Need for Valuation, Hindrances/ Bottlenecks in Valuation, Business Valuation Approaches, Principles of Valuation (Cost, Price and Value)

Valuation of Business and Assets for Corporate Restructuring: Type of Valuations, Valuation Principles & Techniques for Merger, Amalgamation, Slump Sale, Demerger, Principles & Techniques of Reporting, Relative Valuation and Swap Ratio.

Insolvency: Historical Background, Pillars of IBC, 2016 [IBBI, IPA, IP, AA, IU], Key Definitions and Concepts, Insolvency Initiation/Resolution under sections 7, 8 and 10

 

12.00
Unit II: 

Application for Corporate Insolvency Resolution Process: Legal Provisions, Procedure, Documentation, Appearance, Approval.

Role, Functions and Duties of IP/ IRP/ RP: Public announcement, Management of affairs and operations of company as a going concern, Raising of Interim Finance, Preparation of Information Memorandum Resolution Strategies: Restructuring of Equity & Debt, Compromise & Arrangement, Acquisition, Takeover & Change of Management, Sale of Assets

 

12.00
Unit III: 

Convening and Conduct of Meetings of Committee of Creditors: Constitution of Committee of Creditors, Procedural aspects for meeting of creditors

Preparation & Approval of Resolution Plan: Contents of resolution plan, Submission of resolution plan, Approval of resolution plan

Pre-Packaged Insolvency Resolution Process: Governing Framework, Eligibility for PPIRP, Approval of Resolution Plan, Closure of PPIRP.

 

12.00
Unit IV: 

Cross Border Insolvency: International Perspective and Global Developments, UNCITRAL Legislative Guide on Insolvency Laws, US Bankruptcy Code, Chapter 11 reorganization, Enabling provisions for cross border transactions under IBC

Liquidation on or after failing of Resolution Plan: Initiation of Liquidation, Distribution of assets, Dissolution of corporate debtor

Voluntary Liquidation: Procedure for Voluntary Liquidation, Powers and duties of the Liquidator, Completion of Liquidation.

 

12.00
Unit V: 

Debt Recovery &SARFAESI: Non-Performing Assets, Asset Reconstruction Company, Security Interest (Enforcement) Rules, 2002, Evaluation of various options available to bank viz. SARFASEI, DRT, Insolvency Proceedings, Application to the Tribunal/Appellate Tribunal

Winding-up by Tribunal under the Companies Act, 2013: Procedure of Winding-up by Tribunal, Powers and Duties of the Company Liquidator, Fraudulent preferences

Strike Off and Restoration of Name of the Company and LLP: Ways of striking off of companies, Strike Off by ROC Suo-Motu, Strike Off by Way of Filing an Application by the Company, Procedure of striking off of the name of the company by way of an application to ROC, Restoration of the company, Appeal to NCLT for restoration of the name of the company, Restoration of the LLP

 

Essential Readings: 

Essential Readings:

  • Study Material Published by ICSI

Suggested Readings:

  • Scanner- Arun Kumar (Shuchita Prakashans (P)Ltd
  • Valuation and Insolvency by CS Anoop Jain
  • Corporate Restructuring, Valuation & Insolvency by Sangeet Kedia
  • Corporate Restructuring, Valuation and Insolvency By CS AALHAD MAHABAL

 

References: 

E- Content:

 

Academic Year: 
2023-2024
  • Printer-friendly version
  • PDF version