The Gujarat High Court has issued notice on a Petition challenging the constitutional validity of the Insolvency and Bankruptcy Code, 2016 and the recent ordinance barring Promoters from submitting a resolution plan.
The notice returnable on 22 January, 2018 was issued by a Bench comprising Chief Justice R. Subhash Reddy and Justice Vipul M. Pancholi on a Petition filed by Accord Industries Limited.
The Petitioner approached the High Court after its financial creditor Canbank Factors Ltd. initiated action against it under the Code while a dispute regarding payment of an amount over Rs. 9 crore was pending before a Civil Court.
It has now challenged Sections 5(7) (definition of financial creditor), 6 (persons who may initiate corporate insol…
Read the full article at: http://www.livelaw.in/insolvency-bankruptcy-code-notice-issued/