INSOLVENCY AND BANKRUPTCY BOARD OF INDIA Vs. LALIT KUMAR JAIN
SUPREME COURT OF INDIA
Insolvency And Bankruptcy Board Of India
LALIT KUMAR JAIN
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(1.)The Insolvency and Bankruptcy Board of India has filed the above Transfer Petitions under Article 139 (A) read with Article 142 of the Constitution of India seeking transfer of the Writ Petitions filed before High Courts to this Court.
(2.)By a Notification dated 15.11.2019, the Ministry of Corporate Affairs, Government of India in exercise of its power conferred under Section 1(3) of the Insolvency and Bankruptcy Code, 2016 brought into force the following provisions of the Insolvency and Bankruptcy Code, 2016 insofar as they related to 'personal guarantors to corporate debtors' with effect from 01.12.2019:-
i. Clause (e) of Section 2;
ii. Section 78 (except with regard to fresh start process) and Sections 79;
iii. Sections 94 to 187 (both inclusive);
iv. Clause (g) to Clause (i) of sub-section (2) of Section 239
v. Clause (m) to Clause (zc) of sub-section (2) of Section 239;
vi. Clause (zn) to Clause (zs) of sub-section (2) of Section 240; and
vii. Section 249.
(3.)Writ Petitions were filed in the High Court of Delhi and other High Courts challenging the Notification dated 15.11.2019 and the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process of Personal Guarantors to Corporate Debtors) Rules, 2019. The Writ Petitioners also sought a declaration that Section 95, 96, 99, 100, 101 of the Insolvency and Bankruptcy Code, 2016 are unconstitutional in so far as they apply to personal guarantors of corporate debtors. The Writ Petitions filed in the Delhi High Court are scheduled to be heard finally on 10.11.2020. The Petitioner contended that several Writ Petitions have been filed in the other High Courts. The Petitioner requests for the transfer of the Writ Petitions from all the High Courts to this Court to avoid the confusion caused by possible divergence of opinions expressed by the High Courts.
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