TMI BlogThe Supreme Court's Interpretation of IBC: Balancing Stakeholder Rights and Procedural EfficiencyX X X X Extracts X X X X X X X X Extracts X X X X ..... procedural norms, and the roles of various entities within the IBC framework. Comprehensive Analysis of Key Issues 1. Absence of Judicial Adjudication in Initial Stages The Court clarified that the stages envisaged in Sections 95 to 99 of the IBC do not involve judicial adjudication. This finding is pivotal as it addresses concerns regarding the absence of a judicial mechanism in the initial stages of the insolvency resolution process for individuals and firms. The resolution professional, appointed under Section 97 , is tasked with a facilitative role, focusing on gathering all relevant facts for the application's examination under Sections 94 or 95 . This approach underscores a procedural efficiency model within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court emphasized the independent assessment role of the adjudicating authority. It must not rely solely on the resolution professional's report but engage in a fair process, providing the debtor an opportunity to present their case. This directive ensures that the adjudicatory authority's decision is based on a comprehensive evaluation of all relevant materials, thereby safeguarding the debtor's interests and ensuring a just resolution of insolvency applications. 5. Interpretation of Moratorium and Compliance with Natural Justice The Court's interpretation of the moratorium under Section 96 as a protective measure for the debtor, rather than a prejudicial one, is noteworthy. It highlights the legisl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roach that respects both the efficiency of the insolvency process and the rights of the parties involved. Conclusion The Supreme Court's judgment in Dilip B Jiwrajka Versus Union of India Ors is a seminal contribution to the understanding and application of the Insolvency and Bankruptcy Code. It addresses critical aspects of the Code, ensuring that the insolvency resolution process remains fair, just, and efficient. The judgment sets a precedent for future cases, highlighting the importance of a balanced approach to insolvency proceedings that respects legal principles and procedural norms. Full Text : 2024 (1) TMI 33 - Supreme Court - FAQ - Frequently Asked Questions, TMI Short Notes , Experts comment, op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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