India: Insolvency/Bankruptcy/Re-Structuring

The Insolvency and Bankruptcy Code, 2016 ("Code") was enacted with the maximisation of the value of assets of the corporate debtor ("CD") as one of its primary objectives.

The National Company Law Tribunal, Kochi Bench, recently addressed a critical question regarding the rights of dissenting financial creditors in post-approval execution proceedings under the Insolvency and Bankruptcy Code, 2016.

The Supreme Court through its judgment dated 09.04.2026 in M/s Nirmal Ujjwal Credit Co-operative Society Ltd. vs. Ravi Sethia & Ors . held that the provisions of the Multi-State Cooperative Societies Act, 2002 (“MSCS Act”) do not per se prohibit an a multi state cooperative society to participate as a resolution applicant, as long as it is in conformity with Section 64 of MSCS Act, its own bye laws and Section 29A of the Insolvency and Bankruptcy Code, 2016.