Insolvency and Bankruptcy Code: SC upholds constitutional validity
New Delhi, Jan 25: The Supreme Court on Friday upheld the constitutional validity of the Insolvency and Bankruptcy Code (IBC). A bench headed by Justice R F Nariman said they have upheld the constitutional validity "in its entirety".
The court, however, said that related parties in the act should mean a person connected with the business. The bench disposed of a batch of pleas filed by companies challenging various provisions of the IBC.
The various channels through which lenders recovered their bad loans include the Insolvency and Bankruptcy Code (IBC), SARFAESI Act, debt recovery tribunals (DRTs) and Lok Adalats.