Insolvancy Law
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Though the Supreme Court (SC) dismissed Innoventive Industries Limited’s appeal against the National Company Law Tribunal (NCLT) admitting the insolvency petition filed against it on grounds of national laws trumping state laws—Innoventive had argued it enjoyed protection under the Maharashtra Relief Undertaking Act—its import is far greater. At a time when most companies that have been unable to pay their debts are trying to approach the courts to slow down insolvency proceedings against them, the apex court chose to use the Innoventive case to make a larger point about insolvency proceedings in the country; in the words of the court, since “this is the very first application that has been moved under the (Insolvency and Bankruptcy) Code, we thought it necessary to deliver a detailed judgment so that all Courts and Tribunals may take notice of a paradigm shift in the law”.
The court held that adherence to the timelines specified i |
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