Vol. 6, Issue 5 (2020)
Evaluation of clean slate theory in insolvency & bankruptcy code
Author(s): Vineet Kumar Sharma, Binu N
Abstract: A claw of such value or suitable relief may be obtained. Basis diligence, review and determination by resolution professionals, challenging such antecedent transactions, is required to be applied to the National Company Law Tribunal, wherein an independent judicial mind is engaged and applied to provide appropriate relief in terms of the provisions of the said Code. The Insolvency and Bankruptcy Code, 2016 (Code) is a dynamic law, developed to meet the emerging needs of process stakeholders. The provisions are relating to the avoidance transactions form part of the salient features of the Code. The Code provides that due to such transactions (preferential transactions, undisclosed transactions, forcible transactions and fraudulent transactions) the value is lost with the parties concerned before two years or in other one year.