Friday, November 6, 2020
Introduction
By the fourth amendment to the Insolvency and Bankruptcy Code, 2016 (IBC), Section 32A was introduced. Section 32A states that any liability of the corporate debtor for an offence committed prior to or during corporate insolvency resolution proceedings (CIRP) will stand extinguished from the date the resolution plan is approved by the National Company Law Tribunal (NCLT). This immunity, however, is subject to conditions set out in Section 32A, which have been analyzed in this article.
The rationale behind the amendment is that an incoming investor, who is going to deploy significant money, resources and time into turning around the corporate debtor should not be punished for offences which the erstw…
Read the full article at: https://www.natlawreview.com/article/how-do-you-ring-fence-antecedent-liabilities-insolvency-proceedings-india
