Summary of Significant Rulings on IBC (March 2020- March 2021)
1. Significant Supreme Court Judgments: (a) Arun Kumar Jagatramka vs. Jindal Steel and Power Ltd. & Anr. (15 March, 2021): The prohibition placed by the Parliament in Section 29A and Section 35(1)(f) of the Code must also attach itself to a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013, when the company is undergoing liquidation under the auspices of the Code. (b) Kalparaj Dharamshi & Anr. Kotak Investment Advisors Ltd. & Anr. (10 March, 2021): It is sought to be urged that since there has been a material irregularity in exercise of powers by RP, NCLAT can interfere with the exercise of power by RP u/s 61(3)(ii) of IBC, however, in the instant case, the court observed that all actions of RP have the seal of approval of CoC, and in view of the paramount importance given to the decision of CoC, the Apex Court held that NCLAT cannot interfere with the commercial decision of the CoC. The legislative scheme, as interpreted by various de...