Supreme Court Upholds Insolvency and Bankruptcy Code

The bench also upheld the ban on promoters’ bids for the defaulting company undergoing the insolvency process.

The Supreme Court of India.

(Photo: PTI)

The Supreme Court of India upheld the two-year-old insolvency code in its entirety, quashing petitions that challenged the law saying it was discriminatory. The two-judge bench headed by Rohinton F Nariman also upheld the ban on promoters’ bids for the defaulting company undergoing the insolvency process.

The apex court was hearing a batch of petitions, including some operational creditors, that had challenged the insolvency law on the grounds that it discriminates against operational creditors and their interests as against financial creditors.

Former Attorney General for India, Senior Advocate Mukul Rohatgi, was among the lawyers appearing for the petitioners challenging the law. The top court had reserved its judgment on 16 January.

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