Lawstreet Journal

SC Transfers the Delhi HC Hearing of Plea Against IBC Ordinance to itself

Lawstreet Journal 8 Oct 2020 8:55pm

Image courtesy: Lawstreet Journal Judiciary SC Transfers the Delhi HC Hearing of Plea Against IBC Ordinance to itself

On Tuesday (October 6, 2020), the Delhi High Court demanded a reply from the Centre to a petition challenging the Insolvency and Bankruptcy Code (IBC) Ordinance suspending proceedings for defaults occurring on or after 25 March for six months in the light of the COVID-19 pandemic.

The arguments made by lawyers Shikhil Suri, Piyush Singh, Rahul Rathore, Dinesh C. Pandey, Dhruv Gupta, and PurthiMarvaha Gupta were heard by a bench headed by Justice RF Nariman.

Earlier, a petition titled KIC Food Products Pvt Ltd vs Union of India &Anr was pending before the Delhi High Court, had challenged the constitutional validity of the IBC ordinance, wherein the additional condition of minimum 100 allottees or 10% of the total number of allottees under any real estate project for approaching NCLT was imposed.

One of the petitions, filed by the Association of Karvy Investors, challenged Section 3 of the Insolvency and Bankruptcy Code (Amendment) Act 2020. The said provision, adds certain provisos to Section 7 of the Insolvency and Bankruptcy Code (IBC) to state there should be at least one hundred real estate allottees or ten percent of the total number of allottees, whichever is lesser, to maintain an insolvency petition in respect of a real estate project. The amendment also stated that the application of Section 3 of the amendment Act shall be retrospective, affecting pending applications.

The petitioner has also argued that the high court will not take up his case on merits in any event and will stay in abeyance until the petition… Continue Reading...

Tagged: Insolvency and Bankruptcy Board of India   Insolvency and Bankruptcy Code  
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