# Mukund Choudhary vs. Union of India & Ors.

> SC judgment dated 2025-02-14. Citation: TCN-2025-SC-00048. The case involves a writ petition challenging the constitutional validity of Section 101 of the…

- **Court:** SC
- **Order date:** 14 Feb 2025
- **Citation:** TCN-2025-SC-00048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/mukund-choudhary-vs-union-of-india-ors-d912e699

## Summary

### Background

The case involves a writ petition challenging the constitutional validity of Section 101 of the Insolvency and Bankruptcy Code, 2016, which sets a 180-day limit for the moratorium period. The petitioner argues against this limit, while the court considers the differences between individual and corporate insolvency processes.

## Facts

Mukund Choudhary filed a writ petition challenging the constitutional validity of Section 101 of the Insolvency and Bankruptcy Code, 2016. This section sets a limit of 180 days for the moratorium period. The petitioner's argument is based on the potential adverse effects of this limit. The court distinguishes between individual and corporate insolvency, noting that the purpose of the moratorium differs in each case. The court acknowledges concerns that creditors might exploit the situation if the moratorium ends. The case involves an individual insolvency, not a corporate one. The Corporate Insolvency Resolution Process (CIRP) aims to rehabilitate the corporate debtor, while individual insolvency has a different purpose.

## Issues and analysis

### Issue 1: Whether Section 101 of the Insolvency and Bankruptcy Code, 2016, which fixes an outer limit of 180 …

**Ratio:** The constitutional validity of a law is presumed unless it is manifestly arbitrary or

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**Reasoning:** The court found no merit in the writ petition challenging the constitutional validity of

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**Interpretation:** Section 101 of the Insolvency and Bankruptcy Code, 2016, establishes a time

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**Application:** The court applied the principle of deference to legislative choices and found

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## Parties

- **Judges:** THE CHIEF J…; Sanjay…
- **Appellants:** MUKUND CHO…
- **Respondents:** Union of…
- **Other parties:** Outer Limit for…; Section 101(1) of…; +1 more

## Timeline

- **2025-02-14 — Hearing…**: The matters were called…
- **2025-04-28 — Returnabl…**: Notice to be issued in the civil appeal,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 101 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-101)

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