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The Dichotomy between the Companies Act and the IBC Resolved

Over the years, ever since the Insolvency and Bankruptcy Code, 2016 (“IBC”) came into force, there has been ample litigation addressing different elements of the “waterfall” mechanism prescribed in section 53 therein whereunder the secured creditors have the highest standing. This section conflicts with other statutes. For example, sections 326 and 327 of the Companies Act, 2013 (“2013 Act”) prescribe a different hierarchal order wherein workmen’s dues have been prioritized over the debts to secured creditors, subject to certain conditions specified therein.

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Category: Insolvency lawyers in India
Found: 03.12.2023

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