- Apprentice Lawyer
- Legal Jobs
In a very significant judgment, the Supreme Court has today upheld the validity of Insolvency and Bankruptcy Code “in its entirety”. [Swiss Ribbons Private Limited. & Anr. v. Union of India and others]
However, the Court read down Section 29A holding that the “related party” should be connected to the business organisation/ defaulting company for there to be a bar on submission of resolution plan.
The judgment was delivered by a Bench of Justices Rohinton Nariman and Navin Sinha.
Some of the provisions that were under challenge include Sections 3(12), 5(7), 6, 7, 12, 29, 62, 214(f), 231 and 238 of Insolvency and Bankruptcy Code, 2016.
Most importantly, the petition had also assailed all the appointments made to NCLT and NCLAT prior to 2018 on the ground that it falls foul of the judgment rendered by the Supreme Court in Madras Bar Association v. Union of India.
Read the judgment here.
Story to be updated.