Insolvency Proceedings under IBC, 2016 and the Legal Issues Affecting Such Proceedings

Insolvency Proceedings under IBC, 2016 and the Legal Issues Affecting Such Proceedings

After noting that S.391 of the Companies Act, 1956 speaks of a compromise or arrangement between a company and inter alia its creditors if a majority of the creditors representing 3/4th value of the debt, agree to such compromise or arrangement in a meeting of such creditors present and voting, either in person or through proxies; which meeting has to be directed by the Court on an application under sub-section (1) by the Company or any creditor, it was concluded that when scheme is defunct then there is no reason to stall the proceedings for initiation of the CIRP by resorting to the provisions of the IBC, 2016.

Omkara Assets Reconstruction Pvt Ltd v. Amit Chaturvedi [2026] GCtR 161 (SC)