What did the Supreme Court decide in Committee of Creditors of Essar Steel India Ltd v Satish Kumar…
Essar Steel (2019) struck down the word "mandatorily" as manifestly arbitrary under Article 14 and an unreasonable restriction under Article 19(1)(g). The effect is that…
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What did the Supreme Court decide in Committee of Creditors of Essar Steel India Ltd v Satish Kumar Gupta (2019) about the second proviso to section 12 of the Insolvency and Bankruptcy Code, 2016, which says the CIRP 'shall mandatorily be completed' within 330 days?
Answer and explanation
Correct answer A
Essar Steel (2019) struck down the word "mandatorily" as manifestly arbitrary under Article 14 and an unreasonable restriction under Article 19(1)(g). The effect is that "ordinarily" the process must be completed within 330 days, including extensions and time spent in litigation, but the time can be extended in exceptional cases. The word still appears in the printed text of section 12, though it no longer operates.
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