Case: INSOLVENCY AND BANKRUPTCY BOARD OF INDIA Vs. LALIT KUMAR JAIN &amp; ORS

2. By a Notification dated 15.11.2019, the Ministry of Corporate Affairs, Government of India in exercise of its power conferred under Section 1(3) of the Insolvency and Bankruptcy Code, 2016 brought into force the following provisions of the Insolvency and Bankruptcy Code, 2016 insofar as they related to personal guarantors to corporate debtors with effect from 01.12.2019: -i. Clause (e) of Section 2;ii. Section 78 (except with regard to fresh start process) and Sections 79;iii. Sections 94 to 187 (both inclusive);iv. Clause (g) to Clause (i) of sub-section (2) of Section 239 v. Clause (m) to Clause (zc) of sub-section (2) of Section 239;vi. Clause (zn) to Clause (zs) of sub-section (2) of Section 240; andvii. Section 249.3. Writ Petitions were filed in the High Court of Delhi and other High Courts challenging the Notification dated 15.11.2019 and the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process of Personal Guarantors to Corporate Debtors) Rules, 2019. The Writ Petitioners also sought a declaration that Section 95, 96, 99, 100, 101 of the Insolvency and Bankruptcy Code, 2016 are unconstitutional in so far as they apply to personal guarantors of corporate debtors. The Writ Petitions filed in the Delhi High Court are scheduled to be heard finally on 10.11.2020.

Reasoning: 6. After hearing the submissions made by the parties, we are of the considered opinion that the Writ Petitions that are pending in the High Courts pertaining to the challenge to the Notification dated 15.11.2019 and related issues have to be transferred to this Court. Transfer of the Writ Petitions to this Court would avoid conflicting decisions by the High Courts which are in seisin of the Writ Petitions. The Insolvency and Bankruptcy Code is at a nascent stage and it is better that the interpretation of the provisions of the Code is taken up by this Court to avoid any confusion, and to authoritatively settle the law.