MUMBAI : Supreme Court on Friday rejected petitions challenging the country’s bankruptcy laws, including a rule that bans owners of insolvent firms from bidding to buy back assets auctioned as part of the bankruptcy proceedings.
The ruling upheld fledgling bankruptcy and insolvency rules and is expected to pave the way for banks to recover billions of dollars from bankrupt firms mired in litigation, lawyers said.
India introduced the Insolvency and Bankruptcy Code (IBC) in May 2016, but there is a backlog of unresolved cases due to legal actions filed by the owners of bankrupt companies who are typically reluctant to give up control.
