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The decision has crucial implications for company insolvency proceedings, balancing the rights of creditors with the need for truthful remedy of directors for the duration of company restructuring processes.
“Proceedings” really should include things like all proceedings from the corporate debtor, civil or prison, that would end in execution of any judgment.
To offer for summary trial on the situations under the Act with a perspective to dashing up disposal of circumstances.
Portion fourteen from the IBC: Which imposes a moratorium preventing many authorized steps against the corporate debtor through insolvency proceedings
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The Courtroom viewed as many authorities And exactly how it absolutely was employed by the court docket for its reasoning for resolving The difficulty.
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Although Area 138 specials with penalties for cheque dishonour due to an absence of resources in the accounts, Section 139 establishes a presumption that the holder of the cheque has obtained the cheque in total or in part ibc 138 to discharge a financial debt or other obligations.
Provided the item of Portion 14, there is absolutely no rationale to curtail the meaning in the expression “proceedings”.