CONSTITUTIONAL VALIDITY OF SECTION 32A OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 UPHELD BY THE HON’BLE SUPREME COURT

The Hon’ble Supreme Court while upholding various amendments to the Insolvency and Bankruptcy Code, 2016, which were introduced vide Ordinance dated 28.12.2019, which was subsequently, converted into an Act, has upheld the constitutional validity of Section 32A of the Insolvency and Bankruptcy Code, 2016, which grants immunity to the new management from any past liability. As a result thereto, the Corporate Debtor and its new management shall get a Company free from all past liabilities. (Manish Kumar Vs Union of India &Anr.(2021) SCC OnLine SC 30)