Supreme Court seeks govt response on plea challenging IBC validity
PrintListen to this Article
A Bench led by Justice RF Nariman issued notice to the ministries of finance, law and corporate affairs on a petition filed by the Association of Karvy Investors, challenging the recent Insolvency and Bankruptcy Code (Amendment) Act, 2020 on the ground that it is “manifestly arbitrary and violative of Article 14 of the Constitution”.
The apex court also asked parties to maintain a status quo with regard to the pending applications filed by homebuyers with the NCLT for initiating insolvency proceedings against developers.
The new law says that homebuyers looking to take a developer to an insolvency court will have to ensure that a minimum of 100 or 10% of the total allottees of a project were part of a joint petition seeking initiation of insolvency proceedings against the builder.
Challenging Sections 3 & 10 of the Act, counsel Srijan Sinha argued said that the new law was in violation of Articles 14 (equality before law) of the Constitution as it had rendered buyers, who are financial creditors, remediless and also subjected them to discrimination by putting a pre-condition in the form of a minimum number of allottees of a particular project required for filing an application under Section 7 of the IBC for initiation of the IRP. #casansaar (Source - Financial Express)
Category : Insolvent Professional | Comments : 0 | Hits : 342
The National Company Law Tribunal (NCLT) on Monday ordered insolvency proceedings against media baron Subhash Chandra on a plea filed by Indiabulls Housing Finance. A two-member Delhi bench of the NCLT directed initiation of personal insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL) Chairman Emeritus Chandra, who was a guarantor for a loan given to Essel group firm Vivek Infracon Ltd. The NCLT bench, consisting members Ashok K Bhardwaj and Subrata K Das,...
The Insolvency and Bankruptcy Board of India (IBBI) invites suggestions/comments from public and regulated entities, on the Regulations for simplifying, easing and reducing cost of compliance. The suggestions are invited in pursuance of the announcement made in the Union Budget for FY 2023-24 by the Union Finance Minister: “To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For th...
To make surety bond business more attractive, the government is looking at making relevant changes in the Insolvency and Bankruptcy Code (IBC) to consider insurers as financial creditor in case of default of infra projects. The surety bond issued by a general insurance company is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee). The surety is a company that provides the fina...
The National Company Law Tribunal Delhi recently observed that the Insolvency and Bankruptcy Code cannot be used as a recovery tool. “We are of the view that in the present case the applicants are already having demands drafts of amount exceeding the defaulted amount in this petition and moreover IBC cannot be used as a tool for recovery; the settlement has been arrived between the parties. The amount has been paid in excess of the default amount and Ld. Counsel for the applicant has al...
India’s turbulent aviation sector will likely see another player go belly up with Go First of the Wadias filing for voluntary insolvency before the National Company Law Tribunal (NCLT). The budget carrier said it is cancelling all flights on May 3, 4, and 5 and will refund the full fares to the passengers. The Directorate General of Civil Aviation (DGCA) has questioned the cancellation and issued a show-cause to the airline. Go First has been asked to submit its response within 24 ho...
Comments