Does ibc, 2016 have overriding effect over msmed act
Querist :
Anonymous
(Querist) 19 February 2024
This query is : Resolved
Give me relevant judgements.
T. Kalaiselvan, Advocate
(Expert) 19 February 2024
Until the commencement of the Insolvency and Bankruptcy Code (hereinafter referred to as IBC) in May, 2016, there was no single legislation dealing with matters of insolvency and bankruptcy in India.
The very objective of the IBC is, therefore, to warrant that all the insolvency and bankruptcy laws are brought under the same fortified roof of the IBC, and all disputes pertaining thereto are resolved swiftly and effectively.
The IBC becomes relevant to MSMEs mostly when they are operational creditors to large debtors.
There are cases where MSME can also be a financial creditor.
The Insolvency and
Bankruptcy Code (Second Amendment) Act, 2018 (Second Amendment) has brought relief to the
MSME by relaxing the applicability of the provisions of section 29A of the Code
Section 29A of the Code provides for the persons ineligibility to be a resolution applicant(s) and
thus, forms an important criterion of eligibility to submit a resolution plan. The Second Amendment
introduced section 240A, which provides certain relaxations to MSMEs with respect to the
applicability of restrictive provision of section 29A. The intention behind the enactment of this
provision was to grant exemptions to corporate debtors (CDs) which are MSME(s), by permitting
a promoter who is not a willful defaulter or covered under any other specific disqualification as
provided under section 29A, to bid for the resolution plan of an MSME.
You can look for the specific judgment by yourself through internet
