The Insolvency and Bankruptcy Code, 2016, primarily aims to achieve reorganization and insolvency resolution in a time-bound manner for maximizing the value of assets of insolvents. The National Company Law Tribunal (NCLT), the adjudicating authority under the code, works to that end. However, being a creature of statute the NCLT must function strictly within the parameters of powers conferred upon it by the code and the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (I&B Rules). This poses a challenge which, for the moment, has been resolved by the Supreme Court.
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While it is settled law that winding up and liquidation proceedings under the Companies Act…
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