SC upheld the Amendments of proviso 3 to sec(7) of IBC however, it has grated releif of court fees & condonation.

The Supreme Court has upheld key amendments to the Insolvency and Bankruptcy Code (IBC), specifically those impacting Section 7(1). While the amendments themselves were largely affirmed, the court did provide relief concerning court fees and condonation applications. This judgement addresses challenges brought forth by petitioners questioning various sections of the IBC (Amendment) Act 2020.

IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
WRIT PETITION(C) NO.26 OF 2020

MANISH KUMAR ……… PETITIONER(S)

VERSUS

UNION OF INDIA AND ANOTHER ………… RESPONDENT(S)

WITH

WRIT PETITION (C) NO. 53/2020
WRIT PETITION (C) NO. 28/2020
WRIT PETITION (C) NO. 47/2020
WRIT PETITION (C) NO. 27/2020
WRIT PETITION (C) NO. 73/2020
WRIT PETITION (C) NO. 328/2020
WRIT PETITION (C) NO. 210/2020
WRIT PETITION (C) NO. 191/2020
WRIT PETITION (C) NO. 164/2020
WRIT PETITION (C) NO. 163/2020
WRIT PETITION (C) NO. 166/2020
WRIT PETITION (C) NO. 173/2020
WRIT PETITION (C) NO. 182/2020
WRIT PETITION (C) NO. 176/2020
WRIT PETITION (C) NO. 177/2020
WRIT PETITION (C) NO. 257/2020
WRIT PETITION (C) NO. 341/2020
WRIT PETITION (C) NO. 267/2020
WRIT PETITION (C) NO. 333/2020
WRIT PETITION (C) NO. 337/2020
WRIT PETITION (C) NO. 388/2020
WRIT PETITION (C) NO. 402/2020
WRIT PETITION (C) NO. 390/2020
WRIT PETITION (C) NO. 393/2020
WRIT PETITION (C) NO. 783/2020
TRANSFERRED CASE(C) NO. 228/2020
WRIT PETITION (C) NO. 579/2020
WRIT PETITION (C) NO. 806/2020
WRIT PETITION (C) NO. 714/2020
WRIT PETITION (C) NO. 642/2020
WRIT PETITION (C) NO. 805/2020
WRIT PETITION (C) NO. 19/2020
WRIT PETITION (C) NO. 33/2020
WRIT PETITION (C) NO. 75/2020
WRIT PETITION (C) NO. 165/2020
WRIT PETITION (C) NO. 850/2020
WRIT PETITION (C) NO. 374/2020
WRIT PETITION (C) NO. 229/2020
WRIT PETITION (C) NO. 228/2020
WRIT PETITION(C) NO. 209/2020

J U D G M E N T

K.M. JOSEPH, J.

1. The petitioners have approached this Court under Article 32 of the Constitution of India. They call in question Sections 3, 4 and 10 of the Insolvency and Bankruptcy Code (Amendment) Act 2020 (hereinafter referred to as ‘the impugned amendments’, for short). Section 3 of the impugned amendment, amends Section 7(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘the Code’, for short). Section 4 of the impugned amendment, incorporates an additional Explanation in Section 11 of the Code. Section 10 of the impugned amendment inserts Section 32A in the Code.

2. Section 7(1) of the Code before the amendment read as follows:

“7. Initiation of corporate insolvency resolution process by financial creditor:

(1) A financial creditor either by itself or jointly with other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government, may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred.”

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