Transfer of Writ Petitions to Supreme Court for Clear Interpretation of Insolvency Law

In a significant legal development, Writ Petitions challenging sections of the Insolvency and Bankruptcy Code are slated for transfer to the Supreme Court. This move aims to ensure a clear and definitive interpretation of the Code’s provisions, essential in the nascent stage of its implementation. Stay tuned for updates on the court’s expert analysis and resolution on this crucial matter.


  • Several Writ Petitions were filed in different High Courts challenging the Notification dated 15.11.2019 and the Insolvency and Bankruptcy Rules, 2019.
  • Writ Petitions sought a declaration that certain sections of the Insolvency and Bankruptcy Code, 2016 are unconstitutional in relation to personal guarantors of corporate debtors.
  • Writ Petitions filed in the Delhi High Court are scheduled for final hearing on 10.11.2020.

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  • The Petitioner is requesting the transfer of Writ Petitions from all High Courts to the Supreme Court to avoid confusion due to possible differing opinions.
  • The Petitioner’s counsel emphasized the importance of the matter and the need for early resolution to avoid confusion.
  • It was argued that different opinions from various High Courts could lead to confusion and hence transferring the cases to the Supreme Court would be beneficial.
  • The Solicitor General supported the transfer and stated that resolving the dispute expeditiously is essential.
  • The Respondents in the High Courts objected to the transfer citing readiness for hearing and the benefit of the High Courts’ opinions on the matter.
  • The Respondents also argued that the Insolvency and Bankruptcy Board of India cannot maintain the Transfer Petitions.
  • The respondents argued that the transfer petitions were not maintainable as the petitions were filed by private individuals and not by the Union of India.
  • They contended that the petitions did not meet the legal requirements for transfer of cases as outlined in the Code of Civil Procedure.
  • The respondents also raised objections regarding the maintainability of the petitions and argued that they should be dismissed.

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  • Interpretation of provisions of the Insolvency and Bankruptcy Code should be taken up by the Court to avoid confusion.
  • Authoritative settlement of the law by the Court regarding the Code’s provisions is necessary.
  • The Code is still in a nascent stage, highlighting the importance of clear interpretation by the Court.

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  • The Writ Petitions challenging the Notification dated 15.11.2019 and related issues are to be transferred to the Supreme Court for final judicial determination.
  • The transfer of Writ Petitions from High Courts to the Supreme Court is deemed necessary for timely resolution of important issues.
  • The Transfer Petitions for this purpose are allowed, and interim orders by High Courts will continue.
  • No further Writ Petitions challenging the November 2019 Notification shall be accepted by any High Court.
  • Existing Writ Petitions will remain with the Supreme Court for an extended period.
  • The High Courts are instructed to promptly transfer the records of the Writ Petitions to the Supreme Court to avoid conflicting decisions.


Case Number: T.P.(C) No.-001034 / 2020

Click here to read/download original judgement

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