Insolvency And Bankruptcy Board of India Vs Satyanarayan Bankatlal Malu & Ors (Supreme Court of India)
The recent Supreme Court ruling in the case of Insolvency And Bankruptcy Board of India Vs Satyanarayan Bankatlal Malu & Ors clarifies the jurisdiction of Special Courts under the Insolvency and Bankruptcy Code. Analyzing the provisions of Section 236(1) of the Code, the Court provides crucial insights into the legislative intent and its implications.
The Court delves into the specifics of Section 236(1) of the Insolvency and Bankruptcy Code, emphasizing the distinction between ‘legislation by incorporation’ and ‘legislation by reference’. It elucidates that the reference to Special Courts under Chapter XXVIII of the Companies Act is specific, not general, indicating legislation by incorporation.
Moreover, the Court addresses subsequent amendments to the Code and the Companies Act, highlighting the frozen nature of Section 236(1) provisions post-enactment. It refutes the notion that subsequent amendments in the Companies Act would affect the jurisdiction of Special Courts under the Code.
The ruling underscores that offenses punishable under the Code, with imprisonment of two years or more, must be tried by Special Courts presided over by Sessions Judges or Additional Sessions Judges. For offenses with lesser punishment, jurisdiction lies with Special Courts headed by Metropolitan Magistrates or Judicial Magistrates of the First Class.
