M/S. INNOVENTIVE INDUSTRLES LTD. versus ICICI BANK & ANR.

M/S. INNOVENTIVE INDUSTRLES LTD. versus ICICI BANK & ANR.

The Maharashtra Relief Undertakings Act, 1958 cannot suspend or hold in abeyance the corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, 2016, due to the latter's non-obstante clause (s.238) and constitutional principles of repugnancy (Art. 254). The appellant company's debt obligation was unconditional under the restructuring agreement and not dependent on infusion of funds. The application by the financial creditor was rightly admitted; the appeal by the erstwhile directors was not maintainable.

Parties
Appellant: Innoventive Industries Ltd.; Respondent (financial Creditor): ICICI Bank Ltd.; Respondent: ANR.
Jurisdiction
India
Judgment Date
31 August 2017
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals dismissed
Legal Topics
Corporate Insolvency Resolution Process, Repugnancy Between Central and State Laws, Moratorium Under Insolvency Code, Non Obstante Clause, Priority of Obligations Under Restructuring Agreements
Insolvency Banking Law Constitutional Law Corporate Insolvency Resolution Process Repugnancy Between Central and State Laws Moratorium Under Insolvency Code Non Obstante Clause Priority of Obligations Under Restructuring Agreements

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 5 Party arguments 2
Sign in to unlock

Parties

Innoventive Industries Ltd.

Appellant

ICICI Bank Ltd.

Respondent (financial Creditor)

ANR.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether the Maharashtra Relief Undertakings Act, 1958 can suspend corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016
  2. 2 Whether debt was legally due under restructuring agreement when liability was temporarily suspended
  3. 3 Whether the Code prevails over the 1958 Act due to its non-obstante clause

Ratio Decidendi

The Maharashtra Relief Undertakings Act, 1958 cannot suspend or hold in abeyance the corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, 2016, due to the latter's non-obstante clause (s.238) and constitutional principles of repugnancy (Art. 254). The appellant company's debt obligation was unconditional under the restructuring agreement and not dependent on infusion of funds. The application by the financial creditor was rightly admitted; the appeal by the erstwhile directors was not maintainable.

Court Disposition

Appeals dismissed

Orders

  • No order as to costs