Supreme Court upholds insolvency law in entirety

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The Supreme Court today upheld the insolvency and bankruptcy law in its entirety. Under the law promoters of bankrupt firms have been banned from bidding for insolvent companies. The apex court has rejected pleas seeking changes in IBC.

The court said that founder cannot bid under the bankruptcy process.

The IBC Amendment Act 2018, which replaced an earlier ordinance on Section 29A, debars loan defaulters from bidding for stressed assets.

The IBC, which triggered RBI’s February 12 circular bringing in the one-day default norm and abolishing the other debt resolution mechanisms, strikes at the root of the Rs 10 lakh crore NPA crisis even as it improved the creditor-debtor relationship.

The IBC Amendment Act 2018, which replaced an earlier ordinance on Section 29A, debars loan defaulters from bidding for stressed assets.

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