Insolvency and Bankruptcy Code prevails over apex court rules in case of conflict: Supreme Court

India's Supreme Court has affirmed the supremacy of the Insolvency and Bankruptcy Code (IBC) over judicial pronouncements when conflicts arise. A Supreme Court bench underscored that procedural technicalities cannot be used to circumvent the strict timelines mandated by Parliament for insolvency proceedings.

The ruling clarifies a critical aspect of corporate insolvency resolution. It emphasizes that the legislative intent behind the IBC, which aims for time-bound resolution of stressed assets, must be upheld. The court's stance reinforces that parliamentary statutes, particularly those concerning economic reforms like the IBC, are paramount.

This judgment is expected to streamline the insolvency process further. By prioritizing the IBC's timelines, the court aims to prevent delays that can jeopardize the recovery prospects for creditors and the revival of distressed companies. The decision ensures that the code's objectives are met efficiently, without being diluted by procedural interpretations.

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Procedural rules cannot be used to dilute the strict timelines prescribed by Parliament for insolvency proceedings.