Insolvency and Bankruptcy Code 2016

This Supreme Court judgment clarifies that validly terminated contracts do not constitute "assets" of a corporate debtor under the IBC, and its moratorium does not revive extinguished rights. It reaffirms that NCLT cannot interfere with terminations based on pre-existing, non-insolvency-related defaults. Furthermore, High Courts retain constitutional jurisdiction to direct statutory authorities, even during moratorium. Facts Of The Case: The dispute originated from a 2005 Development Agreement between Kher Nagar Sukhsadan Co-operative Housing Society and developer AA Estates for redevelopment of a dilapidated Mumbai building declared dangerous under municipal laws. The agreement required completion within 24 months, but the developer failed to meet this timeline. A Supple...

The Supreme Court adjudicated on the validity of the National Company Law Appellate Tribunal’s approval of JSW’s resolution plan under the Insolvency and Bankruptcy Code, 2016. It addressed procedural compliance under Sections 29A, 30, and 61, overreach by NCLAT in modifying NCLT’s order, and jurisdictional limits concerning ED’s attachment powers under PMLA. Facts Of The Case: The insolvency resolution process for Bhushan Power and Steel Ltd. (BPSL) commenced on a petition filed by Punjab National Bank, admitted by NCLT on July 26, 2017. Interim Resolution Professionals invited claims, with financial creditors claiming over ₹47,000 crores and operational creditors over ₹600 crores. JSW Steel emerged as the successful resolution applicant after a multi-stage bid evaluation by the Committ...

Tag: Insolvency and Bankruptcy Code 2016

SC Quashes NCLAT Approval of JSW’s Bhushan Power Takeover Due to Legal Violations “Orders Liquidation”