The Supreme Court has come out with another important verdict in the Kirusa Software Private Limited v. Mobilox Innovations Private Limited case, after its landmark decision in the case of Innoventive Industries. This judgement has clarified the meaning of the phrase existence of dispute found under Section 8 (2) of the Insolvency and Bankruptcy Code, 2016 (IBC). This may look seemingly a small clarification, but it has long-term ramifications. To understand the effect of the judgement, it is pertinent to understand the scheme of insolvency process under IBC first.
The IBC was enacted with the purpose of resolving the position of financially sick companies by either rescuing them or liquidating them. Liquidation means selling off the asse…
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