Essar Steel vs RBI: Testing the Insolvency and Bankruptcy Code in courts

Lawyers said till now high courts have not largely intervened in matters that come under the Code

Even as the first legal challenge to the new Insolvency and Bankruptcy Code (Essar Steel vs the Reserve Bank of India) plays out in the Gujarat high court, experts appear divided over the impact that litigation would have on the efficacy of the nascent insolvency resolution process. This comes at a time when more such companies that are involved in insolvency proceedings are likely to put the Code to test in the courts. 

“The Code is as litigation-prone as any other new law,” says Alok Dhir, managing partner, Dhir & Dhir Associates. Lawyers say this is more so as the