The High Court of Karnataka has ordered issue of notice to the Union Law Ministry on a petition that has questioned the Constitutional validity of 77 sections of the newly enacted Bankruptcy and Insolvency Code, 2016.
Justice A.S. Bopanna passed the order on the petition filed by Lotus Shopping Centres Pvt. Ltd., Mangluru. The petitioner has specifically challenged the validity of sections 4 to 77, 214, 215, 231 and 238 of the code.
Meanwhile, the court also directed the Bengaluru Bench of the National Company Law Tribunal (NCLT) not to pass any adverse order against the petitioner-company in an insolvency proceedings initiated against it by Axis Bank Ltd. The petitioner-company has contended that the NCLTs jurisdiction to handle insolvenc…
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