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Supreme Court Of India Endorses The Fresh Start On A Clean Slate Principle - Insolvency/Bankruptcy/Re-structuring

Satish Kumar Gupta and Others (Essar Steel case) held that allowing claims apart from those covered in a resolution plan to survive after the approval of a resolution plan militates against the rationale of Section 31 of the IBC. The Supreme Court held that the successful resolution applicant should be given an opportunity to take over and run the business of the corporate debtor on a clean slate. Accordingly, a resolution applicant should not be suddenly faced with undecided claims which would...
Mahenderk Khandelwal Satish Kumar Gupta Monnet Ispat Energylimited Manish Kumar Union Of India Essar Steel India
Source: mondaq.com

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