Explore the court’s insightful legal analysis on the withdrawal of Special Leave Petitions in a recent case involving complex insolvency proceedings. Gain valuable insights into the court’s reasoning and decision-making process in a concise summary.
Facts
- Assets Care & Reconstruction Enterprise Ltd. (ACRE) became the only financial creditor after the petitioners assigned their debts to ACRE and settled with the 12th lender.
- ACRE agreed to withdraw the Insolvency & Bankruptcy Code proceedings against the petitioners in exchange for the petitioners withdrawing their Special Leave Petitions.
- Two applications, one by the petitioners for withdrawal and one by ACRE seeking directions, were filed, opposed by the RBI.
- RBI argued that the withdrawal applications should be rejected, and the matter should be heard on merits due to alleged conduct behind RBI’s back after the status-quo order.
- The writ petition initially challenged three circulars issued by the RBI in 2017, leading to the Special Leave Petitions before the Court.
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Decision
- The Special Leave Petitions seeking permission to withdraw are allowed due to majority of lenders being Public Sector Financial Corporations/Banks.
- Permission to withdraw the Special Leave Petitions granted upon depositing a sum of Rs.10,00,000/- as costs.
- Special Leave Petitions will stand dismissed after the deposit is made.
- No affirmation or approval given in relation to events occurring post the status-quo order by the Court.
- The Transfer Petition is rejected as the Special Leave Petitions are disposed of.
- Pending applications, if any, are also disposed of.
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Case Title: JAYASWAL NECO INDUSTRIES LIMITED Vs. RESERVE BANK OF INDIA (2022 INSC 508)
Case Number: SLP(C) No.-009286-009287 / 2018
