The appellate tribunal’s decision reinforces the rules for corporate insolvency and clarifies asset control, aiming to smooth asset recovery for creditors by removing potential conflicts with market rules during resolutions. The ruling shows how the IBC is increasingly recognized as the primary law in complex financial distress situations.
The National Company Law Appellate Tribunal dismissed BSE’s petitions, directly backing the National Company Law Tribunal’s (NCLT) authority over Demat accounts during insolvency. The core issue was BSE challenging the NCLT’s power under Section 60(5) of the IBC, claiming Demat account matters fell solely under securities law and SEBI rules. However, the NCLAT found the NCLT’s orders to unfreeze…