In this insightful piece co-authored by Naman Singh Bagga, Partner at C&S Partners, the authors critically analysed the implications of the Delhi High Court’s ruling in the Venus Recruiters case. The article delves into the complexities surrounding “Avoidable Transactions” under the Insolvency and Bankruptcy Code (IBC), specifically addressing the contention that avoidance applications could not survive the conclusion of the Corporate Insolvency Resolution Process (CIRP).
The piece highlights the tension between strict timelines and the Code’s objective of asset maximization, discussing how restricting the adjudication of these transactions post-plan approval could inadvertently provide a “window of escape” for promoters and management involved in fraudulent or preferential dealings.
The original article can be accessed here.