Insolvency and Bankruptcy Code, 2016 – s.60(5)(c) – The High Court exercised the power of judicial review and interdicted Corporate Insolvency Resolution Process – Correctness: Held: The jurisdiction and power of the Adjudicating Authority under Section 60(5)(c) has already been reiterated by this Court in its various decisions – In the instant case, it is important to note that CIRP proceedings commenced on 26.10.2018, six years ago, and the resolution plan of the appellant was approved in 2020, four years back – The importance of concluding the CIRP proceedings was highlighted by this Court, on a number of occasions – It is also settled that an unjustified interference with the proceedings initiated under the Insolvency and Bankruptcy Code 2016, breaches the discipline of law – In view of the delay in approaching the High Court, particularly when respondent no.1 himself has initiated proceedings under the Code by filing interlocutory applications seeking similar relief, this Court is of the opinion that High Court committed an error in entertaining the writ petition – Apart from delay and laches, High Court should have noted that Insolvency and Bankruptcy Code is a complete code in itself, having sufficient checks and balances, remedial avenues and appeals – Adherence of protocols and procedures maintains legal discipline and preserves the balance between the need for order and the quest for justice – The supervisory and judicial review powers vested in High Courts represent critical constitutional safeguards, yet their exercise demands rigorous scrutiny and judicious application – This is certainly not a case for the High Court to interdict CIRP proceedings under the Insolvency and Bankruptcy Code. [Paras 13, 14, 15]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan In State Bank of India & Ors. v. Consortium of Mr. Murai Lal Jalan & Ors; 2024 SCC Online SC 3187 pars 151 and 152.. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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