# Manish Kumar Vs. Union of India & Anr.,  Writ Petition (C) No.26 of 2020 with other writ petitions

> SC judgment dated 19 Jan 2021. Citation: TCN-2021-SC-00080. The petitioners, primarily allottees under real estate projects and some money lenders, have…

- **Court:** SC
- **Order date:** 19 Jan 2021
- **Citation:** TCN-2021-SC-00080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/manish-kumar-vs-union-of-india-anr-writ-petition-ebfb352c

## Summary

### Background

The petitioners, primarily allottees under real estate projects and some money lenders, have approached the Supreme Court under Article 32 of the Constitution of India. They are challenging the constitutional validity of Sections 3, 4, and 10 of the Insolvency and Bankruptcy Code (Amendment) Act 2020. Specifically, Section 3 amends Section 7(1) of the Insolvency and Bankruptcy Code, 2016, by introducing three provisos that impose a new threshold for initiating the Corporate Insolvency Resolution Process (CIRP) for certain financial creditors, including allottees. Section 4 incorporates an additional Explanation in Section 11 of the Code, and Section 10 inserts Section 32A, which grants immunity to corporate debtors and their properties from criminal liability for offenses committed prior to the commencement of CIRP, subject to certain conditions.

…

## Facts

The petitioners, predominantly allottees in real estate projects and some money lenders, have challenged the constitutional validity of Sections 3, 4, and 10 of the Insolvency and Bankruptcy Code (Amendment) Act 2020. These amendments introduce significant changes to the Insolvency and Bankruptcy Code, 2016 (the Code). Specifically, Section 3 amends Section 7(1) of the Code by adding three provisos, which impose new thresholds for financial creditors to initiate the Corporate Insolvency Resolution Process (CIRP).

…

## Issues and analysis

### Issue 1: Whether the amendments to Section 7(1) of the IBC, introducing thresholds for initiating CIRP by…

**Ratio:** A classification within a class is permissible under Article 14 of the Constitution if it…

**Reasoning:** The Court reasoned that the classification of allottees and certain financial creditors…

**Interpretation:** The Court interpreted the amendments as creating a reasonable classification…

**Application:** Applying this interpretation, the Court found that the thresholds imposed on…

## Parties

- **Judges:** ROHINTON FALI…; NAVIN S…; +1 more
- **Appellants:** Manish…
- **Respondents:** Union of India &…
- **Other parties:** 7th Edition…; IBC Amendme…; +12 more
- **Advocates:** Krishna Mohan…; Shikhil…; +10 more

## Timeline

- **2016 — IBC Enac…**: The Insolvency and…
- **June 6, 2018 — Section 238A and…**: Section 238A (Limitation Act applicability) and Section 25A (rights and duties of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/manish-kumar-vs-union-of-india-anr-writ-petition-ebfb352c