Can IBC override existing contracts? Why giving primacy to insolvency law may set a wrong precedent

In a recent judgement which could have wide-reaching ramifications, the National Company Law Appellate Tribunal (NCLAT) upheld the order of the National Company Law Tribunal (NCLT) that set aside termination of a power purchase agreement (PPA) between the corporate debtor, Lanco and the Gujarat distribution licensee, GUVNL. It held that the Insolvency and Bankruptcy Code, 2016 (IBC) will override existing contracts during the corporate insolvency resolution process (CIRP).

Please click here to read the full article by Vishrov Mukerjee and Ameya Vikram Mishra published in Economic Times.