IBC Overrides Defunct Scheme of Arrangement Due to Non-Compliance With Statutory Timelines

Omkara Assets Reconstruction Private Limited Vs Amit Chaturvedi and Ors. (Supreme Court of India) The Supreme Court considered an appeal concerning the interplay between proceedings under the Companies Act, 1956 and initiation of Corporate Insolvency Resolution Proceedings (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The financial creditor had approached the Adjudicating Authority under Section 7 of the IBC seeking initiation of CIRP for recovery of over Rs.154 crores arising from term loans disbursed in 1999 and 2000, with default commencing from 01.01.2003. The corporate debt...