A- A A+
Last Updated : Aug 21 2019 11:51PM     Screen Reader Access
News Highlights
INX Media Scam: CBI arrests P. Chidambram            Hospitals, Banks and Schools in Jammu and Kashmir functioning smoothly            India, Russia reiterate their long-standing position of mutual support for each other's Sovereignty and non-interference of third party            Nearly 40 lakh people avail cashless treatment under Ayushman Bharat Scheme till now            ISRO successfully carries out second Lunar bound orbit manoeuvre for Chadrayaan-2           

National News

Jan 26, 2019
2:17PM

SC upholds constitutional validity of Insolvency laws

File Pic
The Supreme Court has upheld the Insolvency & Bankruptcy Code, IBC's constitutional validity in its ‘entirety’ and rejected petitions challenging the bankruptcy laws. The decision is a setback to defaulting promoters hoping for a chance to remain in control of their firms.  

A bench of Justices R F Nariman and Navin Sinha refused to tweak any of the provisions of the IBC, which was challenged in a batch of petitions filed by several companies. Justice Nariman, who penned the verdict, said the experiment contained in the Code passes constitutional muster. Lauding the working of IBC, the court said the economy's rightful position has been regained and the defaulters' paradise is lost by the IBC.

The top court said, the flow of financial resource to the commercial sector in India has increased exponentially as a result of financial debts being repaid. It said the working of the Code is being monitored by an expert committee of the central government and in a short period, amendments have been carried out by involving all stakeholders.

The bench also upheld the classification between the financial creditor and operational creditor in IBC and said it is neither discriminatory nor arbitrary and non-violative of Article 14 of the Constitution.
 
Union Minister Arun Jaitley has welcomed the Supreme Court's decision to uphold the validity of the Insolvency and Bankruptcy Code. In a tweet, Mr Jaitley warned that defaulters cannot get away for long. Mr. Jaitley said the upholding of the provisions that bar the defaulting promoters from bidding is both ethical and proper. He said, otherwise the defaulter will continue to manage the company with only the banks taking a haircut.


Live Twitter Feed

Listen News

Morning News 21 (Aug) Midday News 21 (Aug) News at Nine 21 (Aug) Hourly 21 (Aug) (2000hrs)
समाचार प्रभात 21 (Aug) दोपहर समाचार 21 (Aug) समाचार संध्या 21 (Aug) प्रति घंटा समाचार 21 (Aug) (2200hrs)
Khabarnama (Mor) 21 (Aug) Khabrein(Day) 21 (Aug) Khabrein(Eve) 21 (Aug)
Aaj Savere 21 (Aug) Parikrama 21 (Aug)

Listen Programs

Market Mantra 21 (Aug) Samayki 21 (Aug) Sports Scan 21 (Aug) Spotlight/News Analysis 21 (Aug) Samachar Darshan 21 (Aug) Radio Newsreel 20 (Aug)
    Public Speak

    Country wide 1 (Aug) Surkhiyon Mein 1 (Aug) Charcha Ka Vishai Ha 21 (Aug) Vaad-Samvaad 20 (Aug) Money Talk 20 (Aug) Current Affairs 16 (Aug)