The Insolvency and Bankruptcy Board of India (IBBI) filed a writ petition challenging an order passed by the National Company Law Tribunal (NCLT). The NCLT order declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as ultra vires Section 240(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”). Regulation 36A pertains to the invitation of resolution plans. The NCLT reasoned that Regulation 36A, which involves inviting expressions of interest, was contrary to the speedy disposal of the resolution process, a key feature of the IBC. The NCLT's decision was based on the premise that inviting expressions of interest retards the resolution process and wastes time.
The Insolvency and Bankruptcy Board of India (IBBI) challenged an order by the National Company Law Tribunal (NCLT) that declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as ultra vires Section 240(1) of the Insolvency and Bankruptcy Code (IBC). Regulation 36A concerns the invitation of resolution plans, involving an 'expression of interest' stage. The NCLT, in an application for extension of the Corporate Insolvency Resolution Process (CIRP) filed by State Bank of India (SBI), found that Regulation 36A was contrary to the IBC's objective of speedy resolution. The NCLT noted that inviting expressions of interest before resolution plans would delay the process. The IBBI argued
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The NCLT passed an order declaring Regulation…
The High Court directed that the impugned order…
The Insolvency and Bankruptcy Board of India (IBBI) filed a writ petition challenging an order passed by the National Company Law Tribunal (NCLT). The NCLT order declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as ultra vires Section 240(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”). Regulation 36A pertains to the invitation of resolution plans. The NCLT reasoned that Regulation 36A, which involves inviting expressions of interest, was contrary to the speedy disposal of the resolution process, a key feature of the IBC. The NCLT's decision was based on the premise that inviting expressions of interest retards the resolution process and wastes time.
The Insolvency and Bankruptcy Board of India (IBBI) challenged an order by the National Company Law Tribunal (NCLT) that declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as ultra vires Section 240(1) of the Insolvency and Bankruptcy Code (IBC). Regulation 36A concerns the invitation of resolution plans, involving an 'expression of interest' stage. The NCLT, in an application for extension of the Corporate Insolvency Resolution Process (CIRP) filed by State Bank of India (SBI), found that Regulation 36A was contrary to the IBC's objective of speedy resolution. The NCLT noted that inviting expressions of interest before resolution plans would delay the process. The IBBI argued
…The NCLT passed an order declaring Regulation…
The High Court directed that the impugned order…