JSA Prism (Insolvency) – February 2023

The adjudication of an avoidance application under the IBC can survive the CIRP of a corporate debtor

The Division Bench of the Delhi High Court (“Delhi HC”) has put to rest the issue on avoidance applications proceedings surviving the conclusion of corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 (“IBC”). The Delhi HC has held that the avoidance applications can survive even after the approval of the resolution plan in cases where the resolution plan does not account for these transactions.

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