One of the key functions of law is to ensure safety, security, and stability in the society. Law structures economic, social, and political interactions in a secure, stable and effective manner. It thus stipulates the mandate apropos acceptable and unacceptable behaviour in the society writ large. Stated simply, law channels the outcomes and allows the decision makers to anticipate likely outcomes and thereby, predicts the consequences of their actions. Clarity and certainty are, thus, strongly connected to the pursuit of the rule of law and suffuses an element of predictability for the stakeholders. Legal clarity and certainty, of course, also adds to the legitimacy of the judiciary while it fosters the rule of law. The Indian legal system has adopted a host of features that enhances legal certainty and clarity, chief of which is the adoption of the doctrine of stare decisis (binding nature of precedents). In fact, precedents convey information that allows the decision makers and stakeholders to predict, within certain bounds, the likely legal consequences of different choices and infer the possible range of outcomes of potential disputes and differences.
Legal discourse, in large part, determines the rules of the game and informs the players of those rules so that they can best seek out their potential within the confines of the law. Precedents serve as a primary source of legal research, insights and analysis, while stimulating the development of law. They illuminate on the interpretive strides made by the Courts when wading through the statutes. Legal research often begins with statutes or regulations, the primary law passed by the legislature or regulatory agency in the relevant jurisdictions. However, matters interpreting the terms and intent of the statute are invaluable source of law. It is essential to acquire familiarity with this body of law to determine the elements of a cause of action, the latest and updated stance of the Courts, and to increase an understanding of the litigation process.
In this milieu, this publication/compilation of Section-wise case laws is the sprouting of a seed long implanted, nurtured, and caressed by the Insolvency and Bankruptcy Board of India. It is the culmination of a scholarly and professional journey that began with the enactment of the Insolvency and Bankruptcy Code in May, 2016. As a dynamic and progressive economic legislation, the Code has been interpreted by the judiciary with deference to legislative intent in economic matters. Judicial pronouncements under the Code are very important resources to understand the various provisions of this ever-evolving law. This publication is unique, as it represents the largest up-to-date account of the jurisprudential development into the nuances of corporate insolvency resolution and other processes. It is topical, since it delineates the pronouncements, as per the statutory provisions applied and interpreted by the judiciary in much simpler manner.
The overall idea of this compilation is to encourage and publish material that is of scholarly depth, precision and independence, and at the same time, readable and engaging. Understood as a whole, this publication attempts to cover the case laws emerged till 30th September, 2020 and raises as many new questions as it concomitantly provides answers to. The discourse will generate further fruitful debates, and will continue with every emerging jurisprudence; undoubtedly, challenging the best minds in the field. It is envisioned that this compilation serves as a worthy part of the changing face of insolvency and bankruptcy law in the country.
31st December, 2020.
Legal Affairs Division
Insolvency and Bankruptcy Board of India