Sunday, November 8, 2020
In the case of Anuj Jain Interim Resolution Professional for Jaypee Infratech Ltd. v Axis Bank Limited Etc.[i] the Supreme Court of India (SC) has laid down detailed principles for the identification of a preferential transaction which could be voided under the Insolvency and Bankruptcy Code, 2016 (Code). The judgment is of importance to investors and lenders, as the approach of the SC in the case, highlights the risk of a transaction being set aside and the diligence which should be exercised by investors and lenders going forward.
The SC had held that certain security interests created by a corporate debtor Jaypee Infratech Ltd. (JIL) in favour of the lenders of its holding company Jayprakash Associates Ltd. …
Read the full article at: https://www.natlawreview.com/article/speeding-insolvency-proceedings-india-understanding-principles-preferential