The Supreme Court has upheld the key provisions of the Insolvency and Bankruptcy Code, 2016 that challenge the code on violation of natural justice principles.
A bench comprising Chief Justice of India (CJI) DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra have pronounced the judgment in petitions challenging provisions under Sections 95(1), 96(1), 97(5), 99(1), 99(2), 99(4), 99(5), 99(6), and 100 of the IBC.
The Court said that IBC cannot be operating in a retroactive manner to hold it violative of the constitution. It further said that statute does not suffer from the vices of manifest arbitrariness.
The Court said that in their view the argument that an adjudicatory role be imposed before Section 97 cannot be accepted.
The Apex Court explained that true adjudication only begins at the stage of Section 100 which is admission or rejection of application of the IBC.
The Court’s judgment said it cannot rewrite the statute.
It added that the petitioner cannot decide the matter of law. The Court also added that the timelines made part of the Code will be rendered nugatory if any adjudicatory role is read into Section 97 of IBC.
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