The Supreme Court has upheld the Insolvency & Bankruptcy Code, IBC’s constitutional validity in its ‘entirety’ and rejected petitions challenging the bankruptcy laws. The decision is a setback to defaulting promoters hoping for a chance to remain in control of their firms.
The bench also upheld the classification between the financial creditor and operational creditor in IBC and said it is neither discriminatory nor arbitrary and non-violative of Article 14 of the Constitution.