"What happens if there are ongoing litigations. Is the corporate debtor obliged to make any additional payment. This needs more clarity," he said.
has already sought immunity from litigation at the NCLT in the BPSL case. The NCLT is likely to take it up when it passes an order on the resolution plan.
It has also raised the issue with the Ministry of Corporate Affairs (MCA) and the Insolvency and Bankruptcy Board of India (IBBI).
Among the latest set of amendments brought about by the government in the IBC, one of the aspects is that the plan would be binding on all stakeholders including the central government, any state government or local authority to whom a debt in respect of the payment of dues may be owed.
However, Saurav Kumar Partner, IndusLaw, said, while the amendment had great persuasive value, either the IBC
would need further clarification or amendments in other laws would have to be made. "It can't be taken as given," he said.
While the IBC
had overriding powers on all other clauses, there was another section that said that the resolution plan should comply with all other applicable laws.
"There are interpretational issues," said Rao.
Claims from different departments had also come up in the case of Monnet Ispat & Energy which was acquired under IBC jointly by AION and JSW.
Based on that experience and what is happening in different IBC cases, in the case of BPSL, we approached for this specific immunity, explained Rao.
However, Rao clarified that while JSW has sought specific immunity on this count in BPSL, there were no second thoughts on the acquisition.