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In a setback to promoter industrialists, the Supreme Court holds the statute (IBC) does not suffer from any manifest arbitrariness to violate Article 14 of the Constitution. SC rejects challenge to IBC provisions on personal guarantors - challenged by industrialists like Anil Ambani, Venugopal Dhoot and others. SC holds that IBC cannot be held to be operating in a retroactive manner.
While the Sick Industrial Companies Act 1985 (SICA) provided ways for debtors to thwart creditors and recovery proceedings by allowing them moratoriums, IBC clamped down on errant promoters. A key provision, Section 29A, which prohibits backdoor entry of promoters to the company, was introduced. It barred them from submitting resolution plans and schemes under Section 230 of the Companies Act 2013, thereby restraining their right to regain control of the corporate debtor.
Bench of judicial member Justice PN Deshmukh and technical member KK Vohra issued notice to Zee on the application under Section 7 of Insolvency and Bankruptcy Code.
Ruchi Soya was acquired by Patanjali in 2019 under the Insolvency and Bankruptcy Code.
The National Company Law Tribunal (NCLT) has disposed of nearly 62,000 cases out of nearly 83,000 cases filed before it, Rajesh Verma, Secretary, Ministry of Co