The jurisprudence surrounding avoidance applications under the Insolvency and Bankruptcy Code (IBC), 2016, has evolved into one of the most crucial debates in India’s insolvency ecosystem. At the heart of the issue lies a fundamental question, can avoidance proceedings, filed to reverse preferential or fraudulent transactions, survive once the corporate insolvency resolution process (CIRP) concludes?
While the IBC was designed as a time-bound mechanism focused on resolution and value maximization, recent judicial and regulatory developments have expanded its interpretive boundaries. From the Delhi High Court’s contrasting rulings…