LI Network
Published on: November 01, 2023 at 00:05 IST
The Supreme Court, on October 31, rejected a series of review petitions against a 2022 judgment that outlined the definition of a secured creditor within the Insolvency and Bankruptcy Code (IBC) 2016.
This definition incorporated any government or governmental authority, emphasizing that any resolution plan disregarding government dues could face rejection.
The bench, including Justices Aniruddha Bose, Bela M Trivedi, among others, upheld the earlier judgment which underlined that a resolution plan must include government dues under the IBC.
The verdict clarified the importance of considering governmental obligations within the insolvency resolution process.
The implications of the judgment highlight the obligation for IBC resolution plans to encompass and address government dues, reflecting the need for comprehensive consideration of all creditors, including governmental entities.
