India News | SC Upholds Laws Protecting New Owners of Bankrupt Companies
Get latest articles and stories on India at LatestLY. The Supreme Court on Tuesday upheld laws that protect new owners of insolvent companies from the charges filed against the previous management.
New Delhi [India], January 20 (ANI): The Supreme Court on Tuesday upheld laws that protect new owners of insolvent companies from the charges filed against the previous management.
"A bankrupt company and its assets cannot face criminal proceedings once it is sold to new owners," a bench of the apex court, headed by Justice Rohinton Fali Nariman, said, in its verdict.
The top court upheld the Section 32A of the Insolvency and Bankruptcy Code (IBC) granting statutory immunity to successful resolution applicant from prosecution.
"Imperative needs to attract resolution applicants who would not shy away from offering reasonable and fair value. Legislature thought it is necessary to provide legal immunity to corporate debtor, provision is well thought out," the court noted. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)