New Delhi, Feb 26 (KNN) The Supreme Court on Tuesday held that insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) cannot be kept in abeyance on the basis of a Scheme of Arrangement that has become redundant due to non-compliance with statutory requirements.
A Bench of Justices Sanjay Kumar and K. Vinod Chandran ruled that once the conditions under Section 7 of the IBC are met, the corporate insolvency resolution process (CIRP) must proceed, regardless of parallel company law proceedings.
The court clarified that a compromise under Section 230 of the Companies Act, 2013 may be considered at an appropriate stage within the IBC process.
Background
The case arose from an application by Omkara Assets…