SC upholds validity of Insolvency and Bankruptcy Code in its entirety

Business Standard SC upholds validity of Insolvency and Bankruptcy Code in its entirety

The companies like Swiss Ribbons, Shivam Water Treaters, and Ganesh Prasad Pandey, an individual petitioner, had challenged various provisions of the IBC, such as Sections 7, 12 and 29

Companies News: The Supreme Court on Friday upheld the Insolvency and Bankruptcy Code (IBC) in its entirety, dismissing all petitions by operational creditors who had challenged the validity of the code.

The only change, the top court said, would be that the definition of connected persons would now include persons connected only to the corporate debtor or the defaulting company.

A detailed copy of the judgment is awaited Companies like Swiss Ribbons, Shivam Water Treaters, and Ganesh Prasad Pandey, an individual petitioner, had challenged various provisions of the IBC, such as Sections 7, 12 and 29. The petitioners had listed discriminatory treatment given to a certain classes of operational creditors and alleged that the IBC was unfair as it was protecting the rights of only financial creditors.

Section 7 of the IBC deals with the initiation of the corporate insolvency resolution process of a company based on a petition moved by the financial creditor,Section 7 of the IBC deals with the initiation of the corporate insolvency resolution process of a company based on a petition moved by the financial creditor...Read More