Case Law Details
Akash Sharma
In the case of M/s. Innoventive Industries Ltd. Vs. Versus Icici Bank & Anr. Hon’ble Supreme Court has passed a comprehensive judgement which settles some nagging issues in the Insolvency and Bankruptcy Code. There are certain flaws observed at para 11 the following,
“11. Having heard learned counsel for both the parties, we find substance in the plea taken by Shri Salve that the present appeal at the behest of the erstwhile directors of the appellant is not maintainable. Dr. Singhvi stated that this is a technical point and he could move an application to amend the cause title stating that the erstwhile directors do not represent the company, but are filing the appeal as persons aggrieved by the impugned order as their management right of the company has been taken away and as they are otherwise affected as shareholders of the company. According to us, once an insolvency professional is appointed to manage the company, the erstwhile directors who are no longer in management, obviously cannot maintain an appeal on behalf of the company. In the present case, the company is the sole appellant. This being the case, the present appeal is obviously not maintainable. However, we are not inclined to dismiss the appeal on this score alone. Having heard both the learned counsel at some length, and because this is the very first application that has been moved under the Code, we thought it necessary to deliver a detailed judgment so that all Courts and Tribunals may take notice of a paradigm shift in the law. Entrenched managements are no longer allowed to continue in management if they can’t pay their debts.”
With due respect to the Judgment of Hon’ble Court, I beg to state that the observation made therein seems to be made without taking into account its adverse consequences. My points of differences are as follows:-
1. Whether the IBC is a confiscatory legislation?
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Honourable SC Court reviewd Bankruptcy law in Jaypee Infrastech case by keeping interest alive of investors & restored the Management. But remember that most of the Owners are playing with Creditors money & need no sympathy.