Initiation of CIRP - It is to be remembered that IBC, 2016 is ...

IBC 2016: Not for Debt Enforcement, Focuses on Summary Procedure, Avoids Examining Penal Interest Claims in Appeals.

December 1, 2021

Case Laws     Insolvency and Bankruptcy     AT

Initiation of CIRP - It is to be remembered that IBC, 2016 is not a ‘Debt Enforcement Procedure’ - the ‘proceedings’ under IBC are summary in nature and not an adversary one. Suffice it for this ‘Tribunal’ to relevantly point out that the ‘proceedings’ under IBC are not like that of a regular ‘Civil Suit’. As such, the aspects of the exorbitant interest, penal interest, purportedly imposed on the ‘Corporate Debtor’ by the Respondent No. 1/Bank are not gone into by this ‘Tribunal’ in ‘Appeal’. - AT

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