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With reference to the Section 32 A of the Insolvency and Bankruptcy Code (IBC), consider the following statements:
1. The Supreme Court held that the successful bidders for a corporate debtor under the IBC would be immune from any investigations being conducted either by any investigating agencies such as the Enforcement Directorate (ED) or other statutory bodies such as SEBI.
2. The protection to successful bidders and the assets of a corporate debtor are provided by the rules under Section 32A of the IBC.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Section 32 A of the Insolvency and Bankruptcy Co...
The Supreme Court recently upheld the validity of Section 32 A of the Insolvency and Bankruptcy Code (IBC).
  • The Supreme Court held that the successful bidders for a corporate debtor under the IBC would be immune from any investigations being conducted either by any investigating agencies such as the Enforcement Directorate (ED) or other statutory bodies such as SEBI.
  • While upholding the validity of Section 32A of IBC, the court said it was important for the IBC to attract bidders who would offer reasonable and fair value for the corporate debtor to ensure the timely completion of corporate insolvency resolution process (CIRP).
  • The protection to successful bidders and the assets of a corporate debtor are provided by the rules under Section 32A of the IBC.
  • The apex court has, however, also said that such immunity would be applicable only if there is an approved resolution plan, and a change in the management control of the corporate debtor.
  • Since the IBC came into being in 2016, the implementation of resolution plan of several big ticket cases has been delayed because of challenges mounted by its own agencies and regulators.
  • With the Supreme Court upholding the validity of Section 32 A, these cases are expected to be completed soon.
  • This will give confidence to other bidders to proceed with confidence while bidding on such disputed companies and their assets.
Hence both statements are correct.
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With reference to the Section 32 A of the Insolvency and Bankruptcy Code (IBC), consider the following statements:1. The Supreme Court held that the successful bidders for a corporate debtor under the IBC would be immune from any investigations being conducted either by any investigating agencies such as the Enforcement Directorate (ED) or other statutory bodies such as SEBI.2. The protection to successful bidders and the assets of a corporate debtor are provided by the rules under Section 32A of the IBC.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the Section 32 A of the Insolvency and Bankruptcy Code (IBC), consider the following statements:1. The Supreme Court held that the successful bidders for a corporate debtor under the IBC would be immune from any investigations being conducted either by any investigating agencies such as the Enforcement Directorate (ED) or other statutory bodies such as SEBI.2. The protection to successful bidders and the assets of a corporate debtor are provided by the rules under Section 32A of the IBC.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Section 32 A of the Insolvency and Bankruptcy Code (IBC), consider the following statements:1. The Supreme Court held that the successful bidders for a corporate debtor under the IBC would be immune from any investigations being conducted either by any investigating agencies such as the Enforcement Directorate (ED) or other statutory bodies such as SEBI.2. The protection to successful bidders and the assets of a corporate debtor are provided by the rules under Section 32A of the IBC.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Section 32 A of the Insolvency and Bankruptcy Code (IBC), consider the following statements:1. The Supreme Court held that the successful bidders for a corporate debtor under the IBC would be immune from any investigations being conducted either by any investigating agencies such as the Enforcement Directorate (ED) or other statutory bodies such as SEBI.2. The protection to successful bidders and the assets of a corporate debtor are provided by the rules under Section 32A of the IBC.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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