Supreme Court issues notice in appeal against NCLAT’s order in which relied upon Vidarbha Industries Power Limited judgment – Maganlal Daga HUF & Anr. Vs. Jag Mohan Daga & Ors. – Supreme court
The NCLAT has relied upon the decision of a two Judge Bench in Vidarbha Industries Power Limited Vs Axis Bank Limited. The decision in Vidarbha Indusries Power Limited, which was rendered on 12 July 2022, was since clarified in a review order dated September 22 2022.
It has been submitted that the decision in Vidarbha Indusries Power Limited runs contrary to the settled position in law laid down in Innoventive Industries Ltd Vs ICICI Bank and subsequently followed in several decisions of this Court including E S Krishnamurthy Vs Bharath Hi-Tech Builders Pvt Ltd. Mr Tushar Mehta, Solicitor General of India submits that the principle which has been enunciated in Vidarbha Indusries Power Limited is liable to dilute the substratum of the Insolvency and Bankruptcy Code 2016.