Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 18 AUGUST 2021

SECTION 60 (5) OF THE IBC - AN UNRESOLVED CONUNDRUM

Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
Contributor
Shardul Amarchand Mangaldas & Co

Shardul Amarchand Mangaldas & Co

Founded on a century of legal achievements, Shardul Amarchand Mangaldas & Co (SAM & Co) was born...

View firm profile
Explore more from Shardul Amarchand Mangaldas & Co

The National Company Law Tribunal's ("NCLT") jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ("IBC") has often been invoked as a comprehensive recourse to all issues...

IndiaInsolvency/Bankruptcy/Re-Structuring
Ameya Gokhale
Ameya Gokhale
Radhika Indapurkar
Radhika Indapurkar
Author LinkedIn connections

SECTION 60 (5) OF THE IBC - AN UNRESOLVED CONUNDRUM1

I. Introduction

  1. The National Company Law Tribunal's ("NCLT") jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ("IBC") has often been invoked as a comprehensive recourse to all issues concerning a corporate debtor undergoing corporate insolvency resolution process ("CIRP") or liquidation. In recent times, the Supreme Court has had the occasion to opine on the scope and extent of NCLT's jurisdiction under Section 60(5) in the judgments of M/s Embassy Property Developments Pvt. Ltd. v. State of Karnataka and Ors.2 ("Embassy") and Gujarat Urja Vikas Nigam Limited v. Amit Kumar Gupta and Ors.3 ("Gujarat Urja") wherein it would appear that the Supreme Court has recognized the limitations inherent to the NCLT's powers thereunder.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

The Insolvency And Bankruptcy Code (Amendment) Act, 2026

India's Insolvency and Bankruptcy Code undergoes significant reform through the 2026 Amendment Act, introducing stricter timelines, enhanced creditor oversight, and frameworks for group and cross-border insolvency. The amendments address persistent challenges in resolution efficiency, withdrawal restrictions, and fraudulent transaction scrutiny while aligning with international best practices to strengthen investor confidence.
IndiaInsolvency/Bankruptcy/Re-Structuring
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Article

The IBC Amendment Act, 2026: Reshaping Real Estate Insolvency

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (‘Amendment Act’), which amends the Insolvency and Bankruptcy Code, 2016 (‘Code’), received Presidential assent on April 6, 2026. Most amendments took effect on May 26, 2026. However, three significant mechanisms the accelerated admission deadline, creditor-initiated resolution, and group insolvency have been enacted but have not yet come into force and will take effect only upon the issuance of a commencement notification by the Central Government under the applicable provisions of the Code.
IndiaInsolvency/Bankruptcy/Re-Structuring
Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
Article

IBC Update - Removal Of Interim Moratorium For Personal Guarantors Apples To Pending Proceedings

The Bombay High Court recently addressed a critical question regarding the temporal application of Section 96(4) of the Insolvency and Bankruptcy Code, which removed the interim moratorium protection for personal guarantors of corporate debtors. The ruling clarifies whether this amendment applies only to fresh applications filed after its enactment or extends to insolvency proceedings that were already pending when the law changed. This decision has significant implications for creditors seeking to pursue p
IndiaInsolvency/Bankruptcy/Re-Structuring
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Article

The End Of The “Settlement Exit”? — The Stricter Section 12A Regime Post-2026 Amendment

For nearly eight years, the Insolvency and Bankruptcy Code, 2016 (IBC) carried within it a quiet contradiction. On the one hand, it was designed to be a serious, time-bound, collective resolution mechanism and a creditor-driven process. On the other hand, it contained Section 12A, a provision that became one of the most strategically exploited exits in Indian commercial law.
IndiaInsolvency/Bankruptcy/Re-Structuring
Foresight Law Offices
Foresight Law Offices
Article

The IBC Amendment Act, 2026: Reshaping Real Estate Insolvency

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (‘Amendment Act’), which amends the Insolvency and Bankruptcy Code, 2016 (‘Code’), received Presidential assent on April 6, 2026. Most amendments took effect on May 26, 2026. However, three significant mechanisms the accelerated admission deadline, creditor-initiated resolution, and group insolvency have been enacted but have not yet come into force and will take effect only upon the issuance of a commencement notification by the Central Government under the applicable provisions of the Code.
IndiaInsolvency/Bankruptcy/Re-Structuring
Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
Article

No GST On Assignment Of Industrial Leasehold Rights: Bombay High Court Grants Relief To Industrial Lessees Holding MIDC Plots

In Aerocom Cushions Private Limited v. Assistant Commissioner (Anti-Evasion), CGST & CX, Nagpur-1, the Nagpur Bench of the Bombay High Court quashed a Show Cause Notice demanding Goods and Services Tax (“GST”) on the assignment of leasehold rights in an industrial plot allotted by the Maharashtra Industrial Development Corporation (“MIDC”). The Court held that such an assignment constitutes a transfer of benefits arising out of immovable property and does not amount to a “supply of service” under the Central Goods and Services Tax Act, 2017 (“CGST Act”).
IndiaTax
Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
Article

From Beneficiary To Promoter: The Bombay High Court On Housing Society Liability Under RERA

The Real Estate (Regulation and Development) Act, 2016 (“RERA”) was enacted to protect homebuyers and promote transparency and accountability in the real estate sector. A key feature of the Act is the definition of “Promoter” under Section 2(zk), as it determines the persons or entities that bear statutory obligations and liabilities towards homebuyers.
IndiaReal Estate and Construction
Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co