IBC reigns supreme over other civil laws, says Delhi High Court

Court's observations came while rejecting Liberty House's plea to stop SBI from invoking bank guarantee

The Delhi High Court on Friday upheld the supremacy of Insolvency and Bankruptcy Code (IBC) over other civil laws such as those of contracts and guarantees and said that only the National Company Law Tribunal (NCLT) or similar adjudicating authorities should deal with the cases falling under the code.

If civil courts were to pass any orders in matters pertaining to IBC, the entire corporate insolvency resolution process pending before NCLT would be “put at naught” as “non-serious applicants” would submit resolution plans for consideration before the Resolution Professional (RP) and Committee of Creditors (CoC), and then not abide with