Torrent Power Ltd v Ashish Arjunkumar Rathi & Others | 2026 INSC 206 | Supreme Court of India | 27 February 2026
First, Let’s Understand the Setting: What Is the IBC and Why Does It Matter?
Think of the Insolvency and Bankruptcy Code, 2016 (IBC) as a special law India enacted to fix a long-standing problem: when a company cannot pay its debts, what happens next? Before the IBC, courts were flooded with endless recovery suits, companies remained in zombie-like distress for years, and lenders rarely got their money back.
The IBC introduced a radical idea: take the decision-making out of courts and give it to the creditors themselves. The creditors know the most about whether a company is worth saving, what it is worth, and…