Analysis of SC Judgment in case of Arun Kumar Jagatramka. Vs. Jindal Steel and Power Ltd.

By TG Team Corporate Law Judiciary March 15, 2021

TaxGuru Citation: 2021 taxguru.in 541
Case Name: Arun Kumar Jagatramka Vs Jindal Steel and Power Ltd. (Supreme Court of India)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Supreme Court of India

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Arun Kumar Jagatramka Vs Jindal Steel and Power Ltd. (Supreme Court of India)

Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi -110001

16^th March 2021

Subject: Judgment¹ dated 15^th March, 2021 of the Hon’ble Supreme Court of India in the matter of Arun Kumar Jagatramka. Vs. Jindal Steel and Power Ltd. & Anr. [Civil Appeal No. 9664 of 2019 and other appeals]

The Hon’ble Supreme Court in its order dated 15^th March, 2021 in the above case, held that (i) prohibition placed by the Parliament in Section 29A and Section 35(1)(f) of the Insolvency and Bankruptcy Code, 2016 (IBC) must also attach itself to a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013 (Act of 2013), when the company is undergoing liquidation under the auspices of the IBC, and (ii) Regulation 2B of IBBI (Liquidation Process) Regulations, 2016 is Constitutionally valid. The Hon’ble SC made some important undernoted observations in the context of insolvency proceedings:

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Theme/Issue

Observation/Ruling

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Objects of the Code

(a) The IBC is a law which consolidated and amended existing legislation relating to re-organisation and insolvency resolution of corporate persons, partnerships and individuals.