The Supreme Court on Friday transferred to itself all the petitions challenging the Insolvency and Bankruptcy Code (IBC) provisions relating to initiation of insolvency proceedings against personal guarantors.
A Bench led by Justice LN Rao while transferring the cases pending before the high courts of Delhi, Madhya Pradesh and Telengana also restrained all HCs from entertaining fresh cases on the issue.
Last month, the apex court had dismissed SBI’s appeal seeking vacation of the stay granted by the Delhi High Court on personal bankruptcy proceedings initiated against Reliance group chairman Anil Ambani. The HC while staying the order of the NCLT, Mumbai, had allowed the proceedings against corporate debtors to continue.
“The IBC is at a nascent stage and it is better that the interpretation of the provisions of the Code is taken up by this court to avoid any confusion, and to authoritatively settle the law. Considering the importance of the issues raised in the writ petitions which need finality of judicial determination at the earliest, it is just and proper that the petitions are transferred from the HCs to this court,” the apex court said.—FE
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