Jaypee Infratech Insolvency Case

Introduction

The Inception of Insolvency and Bankruptcy code [IB Code] was envisaged as a historical moment in the Indian corporate sector as it is a single uniform comprehensive legislation that aims at a speedy solution to corporate insolvency through an established time bound procedure, early identification of financial failure, and other such broader reforms that aimed at increasing the ease of doing business and safeguarding the right of creditors.

However, after the implementation and a numerous judicial adjudication on the code, certain lacunas have surfaced. The Supreme Court and National Company Law Tribunal's [NCLT] adjudication in the jaypee infratech case has created a suspicion whether all the stakeholders are covered under the ambit of the umbrella legislation i.e. the IB Code.