Supremacy Over Defunct Corporate Schemes
Omkara Assets Reconstruction Private Limited v Amit Chaturvedi & Ors | 2026 INSC 189 | Supreme Court of India | 24 February 2026
How the Supreme Court chose economic rehabilitation over procedural politeness, and why delayed corporate schemes cannot hold creditors and the economy hostage
The Central Question
Can a debt-ridden company hide behind a 17-year-old Scheme of Arrangement under the Companies Act to block creditors from invoking the Insolvency and Bankruptcy Code, even when the scheme was never properly implemented, the statutory timelines were grossly violated, and the creditors have withdrawn their consent?
The Supreme Court answered with an emphatic no.
In Omkara Assets…