KIIT Law School Organizes Webinar on Pre-Packaged Insolvency Resolution Process


KLS Centre for Studies in Business and Corporate Law (KCBCL), under the aegis of the Department of Business Law and Corporate Governance, conducted a webinar on the Pre-Packaged Insolvency Resolution Process on 24th August 2021. It was graced by Prof. Ms. Vaneeta Patnaik, Assistant Professor, West Bengal National University of Juridical Sciences.

The webinar commenced with the introductory speech by Prof. Mrs. Ipsita Das, Centre Coordinator (KCBCL). In his welcome address, Prof. (Dr.) Bhavani Prasad Panda, Director, KLS and Chairperson, KCBCL discussed a brief understanding of the topic, the relevance of Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 and introduced Pre-Packaged Insolvency for MSME sector. The speaker, Prof. Ms. Vaneeta Patnaik, was introduced by Deyasini Chakrabarti, Student Coordinator (KCBCL).

In her talk, Prof. Patnaik provided the basic introduction of the topic by giving an insight into the background of the concept. She discussed the various statutes that preceded PIRP (Pre-Packaged Insolvency Resolution Process). She explained various legislations such as the 1956 Companies Act, the 1985 amendment to the same, The Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI), 1993, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFESI), 2002, followed by the 2013 Companies Act and the 2016 and 2021 amendment to the Insolvency and Bankruptcy Code.

After establishing the backdrop against which PIRP is set, Prof. Patnaik proceeded to discuss the concept, its requirement, its viability and why the concept was not already dealt with in the concept of Corporate Insolvency Resolution Process (CIRP) and under the Insolvency and Bankruptcy Code. The Speaker stated that the concept of PIRP has been inspired by the existing jurisprudence in the field in the United States and the United Kingdom and how the concept of PIRP is essentially based on Contract laws, similar to SARFESI.

She referred to several judicial pronouncements like the Swiss Ribbons Case, and the Essar Steel Case to elucidate the point of law that was established in this area of corporate rescue jurisprudence. 

Elaborating on the basic structure of PIRP, she referred to several key provisions and associated examples. The provisions discussed thus were, Chapter IIIA of Part II of Insolvency and Bankruptcy Code from Sections 54A-54P, 54K & 54L, followed by a discussion of Chapter II of Part II of the abovementioned Code with Section 6,7,9,10,12,13-16 & 17. Lastly, the speaker discussed the question of the viability of PIRP as a regulatory framework and how in her opinion there has been substantial value-addition through PIRP as compared to CIRP.

Prof. Patnaik also answered questions posed by the students. The session concluded with the vote of thanks by Prof. CS Pratiti Nayak, Assistant Professor, KLS. Mr. Aporva Shekhar, Student Member-4th year (KCBCL) and Ms. Ishani Mishra, Student Member-4th year (KCBCL) were the Rapporteurs of the webinar.

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