The Hon’ble SC vide its order dated 15.03.2021 in Civil Appeal No. 9664 of 2019 in the matter of Arun Kumar Jagatramka vs Jindal Steel and Power Ltd. & Anr. inter-alia held that prohibition placed by the Parliament in Section 29A and Section 35(1)(f) of the IBC must also attach itself to a scheme of compromise or arrangement under Section 230 of the Act of 2013, when the company is undergoing liquidation under the auspices of the IBC. As such, Regulation 2B of the Liquidation Process Regulations, specifically the proviso to Regulation 2B(1), is also constitutionally valid.
