ICICI Bank‘s win on Friday against defaulter Innoventive Industries in the Supreme Court could set a precedent for other insolvency cases.
The apex court ruled that Insolvency and Bankruptcy Code (IBC) is superior to the Maharashtra Act and that management of a company undergoing bankruptcy proceedings cannot continue in its role and must step aside.
The court dismissed an appeal filed by Innoventive Industries against a National Company Law Appellate Tribunal (NCLAT) verdict and said that ICICI Bank could start bankruptcy proceedings against the company.
The apex court Justice R F Nariman said: “Entrenched managements are no longer allowed to continue in management if they cannot pay their debts.”
This brings relief to b…
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