Determining the Constitutionality of IBC - Swiss Ribbons Pvt. Ltd. v/s Union of India, 2019

In 2015, while examining a legislative framework for insolvency and bankruptcy in the country, United Nations Commission on International Trade Law (UNITRAL) legislative guideline on Bankruptcy and Insolvency was a significant benchmark in making the principles of the new insolvency law in India. In the coming years, India developed a unified code dealing with matters of bankruptcy and insolvency. The IBC, 2016 comes up with paramount economic legislation that changed the whole scenario of debt recovery in the country.In the year 2018, a question was raised against the legislation for its constitutional validity. Attacking the constitutional validity of the Insolvency Code, a special leave petition and ten writ petitions were filed in the Hon’ble Supreme Court of India. The petition which was filed challenged the legislative scheme of Section 53, Section 29A, Section 12A, Section 7 arguing that they don’t pass through the test of constitutionality, and is violating Article 14(1) of the Constitution. The judgement delivered on 25th January 2019, dealt with all the arguments put forward by the petitioners and gave a better understanding of the law