Alkaline Private Limited is a chemical manufacturing company, which had availed many bank loans and other facilities to fund its operations. The company has not been able to repay the loan and interests thereon to the ba

The present case is similar to the case of the Swiss Ribbons Pvt. Ltd. v. Union of India [SC] Writ Petition (Civil) No. 99 of 2018 [Decided on 25/01/2019] . In Swiss Ribbons Pvt. Ltd. case the Supreme Court observed that 'the Insolvency and Bankruptcy Code, 2016 (the Code) is a legislation which deals with economic matters and, in the larger sense, deals with the economy of the country. Earlier experiments, as we have seen, in terms of legislations having failed, ultimately led to the enactment of the Code. The experiment contained in the Code, judged by the generality of its provisions and not by so-called crudities and inequities that have been pointed out by the petitioners, passes constitutional muster. To stay experimentation in things economic is a grave responsibility, and denial of the right to experiment is fraught with serious consequences to the nation. We have also seen that the working of the Code is being monitored by the Central Government through Expert Committees that have been set-up in this behalf. Amendments have been made in the short period in which the Code has operated, both to the Code itself as well as to subordinate legislation made under it. This process is an ongoing process which involves all stakeholders, including the petitioners. In the working of the Code, the flow of financial resource to the commercial sector in India has increased exponentially as a result of financial debts being repaid. Approximately 3300 cases have been disposed of by the Adjudicating Authority based on out-of-court settlements between corporate debtors and creditors which themselves involved claims amounting to over ₹ 1,20,390 crores. Eighty cases have since been resolved by resolution plans being accepted. Of these eighty cases, the liquidation value of sixty-three such cases is ₹ 29,788.07 crores. However, the amount realized from the resolution process is in the region of ₹ 60,000 crores, which is over 202% of the liquidation value. This shows that the experiment conducted in enacting the Code is proving to be largely successful. The defaulter's paradise is lost. In its place, the economy's rightful position has been regained.' Based on the above ruling of the Apex Court, it can be concluded in the given case that the constitutional validity of Insolvency and Bankruptcy Code, 2016 cannot be challenged. Hence, the company will not succeed.