Important Case Laws and Lessons Drawn
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Insolvency and Bankruptcy Code 2016 — Insolvency and Bankruptcy Code 2016.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
In Innoventive Industries Ltd. v. ICICI Bank, which provision did the Supreme Court hold prevails when the IBC's non obstante clause conflicts with a State Act's non obstante clause?
The Supreme Court held that the non obstante clause in the IBC, 2016 prevails over that in the State Act, so the Maharashtra Relief Undertakings Act cannot stand in the way of CIRP under the IBC.
In Swiss Ribbons v. Union of India, was the FC/OC classification under IBC held violative of Article 14?
No, the classification was held neither discriminatory nor arbitrary.
Can a State Government's declaration of an industrial company as a 'relief undertaking' block the initiation of CIRP under the IBC?
No. As held in Innoventive Industries Ltd. v. ICICI Bank, the IBC's non obstante clause overrides State legislation, and a State moratorium on debts cannot prevent financial creditors from initiating CIRP.
What is the outer time limit for completing a CIRP under Section 12 post-2019 amendment including litigation time?
330 days from insolvency commencement date, inclusive of litigation.
What key principle regarding State Acts and the IBC was established by the Supreme Court in Innoventive Industries Ltd. v. ICICI Bank?
The Supreme Court established that the IBC's non obstante clause prevails over competing non obstante clauses in State Acts, ensuring uniformity in insolvency proceedings regardless of State welfare legislation.
What did the Supreme Court hold about the Resolution Professional's adjudicatory powers in Swiss Ribbons?
The RP has no adjudicatory powers; he is merely a facilitator.
Does the welfare or social character of a State Act give it precedence over the Insolvency and Bankruptcy Code, 2016?
No. The Supreme Court in Innoventive Industries Ltd. v. ICICI Bank clarified that the welfare character of a State Act does not override the IBC, and CIRP can proceed despite such State legislation.
Does a resolution applicant have a vested right to consideration or approval of its plan as per Swiss Ribbons?
No, a resolution applicant has no vested right to plan approval.
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