Delhi HC Upholds ‘Clean Slate’ Doctrine for Resolution Applicants under IBC

NTPC Ltd. Vs Directorate of Enforcement (Delhi High Court) Delhi High Court clarified that NTPC, as a successful Resolution Applicant of Jhabua Power Ltd., enjoys immunity under Section 32A IBC. Criminal proceedings against the corporate debtor cannot be extended to the new management, reinforcing finality in insolvency resolutions. The Delhi High Court, in the case of NTPC Ltd. Vs Directorate of Enforcement, addressed the application of the ‘Clean Slate’ doctrine under Section 32A of the Insolvency and Bankruptcy Code (IBC) to shield a successful Resolution Applicant (RA) from cri...