Crown debts which are not part of Resolution Plan under IBC cannot be enforced: Karnataka High Court

If the Central or State departments do not file an application to recover debts or participate in the resolution process under the IBC, then their claims get extinguished automatically, the Court ruled.
 IBC and Karnataka HC
IBC and Karnataka HC

Crown debts do not take precedence even over secured creditors under the Insolvency and Bankruptcy Code (IBC) since Section 238 of IBC provides for overriding effect of IBC over other laws, the Karnataka High Court held.

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