Comment on the correctness of the following factual situations or statements referring applicable provisions of the IBC, 2016 and Regulations made thereunder: One of the Financial Creditor to a Corporate Debtor has claim
CS Professional · Insolvency and Bankruptcy - Law and Practice · PYQS · June 2025
Comment on the correctness of the following factual situations or statements referring applicable provisions of the IBC, 2016 and Regulations made thereunder: One of the Financial Creditor to a Corporate Debtor has claimed that "the IBC, 2016 cannot prevail over the SARFAESI Act, 2002 as the later act also a special act and having non obstante provisions"
Answer & Explanation:
Incorrect Since both are special law and contains non obstante provisions. In case any Corporate Debtor / Borrower is subjected simultaneously under the two special law, the NCLT in the case, of re: Canara Bank v. Sri Chandramoulishvar Spg. Mills (P) Ltd , held that the Insolvency and Bankruptcy Code will prevail over the SARFAESI Act 2002.
Topics: IBC vs SARFAESI
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