2021 SCC Vol. 5 Part 1
In this part read a very interesting decision delivered by the Supreme Court running into over 465 Pages which has been expertly analysed by our editors. While upholding the validity of several provisions of the Insolvency and Bankruptcy Code (Amendment) Act, 2020, albeit with directions given in exercise of powers under Article 142 of the Constitution of India. While so upholding the impugned amendments, the Bench expressed an observation that:
“There is nothing like a perfect law and as with all human institutions, there are bound to be imperfections. What is significant is however for the court ruling on constitutionality, the law must present a clear departure from constitutional limits.”
Short Notes: 7
Constitution of India — Art. 14 — Law enacting or modifying economic measure — Challenge to validity of — Approach of Court in such cases — Explained in detail: Wisdom of original or modified provision(s) is not subject to judicial scrutiny if provision(s) in question are otherwise compliant with the Constitution. Wider latitude given to legislature in economic matters essentially arises from separation of powers under the Constitution. Since the Insolvency and Bankruptcy Code, 2016 undoubtedly bears the brand of an economic measure upon its face, and in true spirit, being one of the most significant and dynamic economic experiments indulged in by the law giver, not by becoming servile to Parliament, but by way of time hallowed deference to the sovereign body experimenting in such matters, the Court will lean heavily in favour of such a law. [Manish Kumar v. Union of India, (2021) 5 SCC 1]