M.R. SHAH, J
Moser Baer Karamchari Union Thr. President Mahesh Chand Sharma – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. petition for striking down provisions claiming infringement of rights. (Para 1) |
| 2. arguments presented regarding balance of creditor rights in insolvency law. (Para 3 , 4) |
| 3. court observations support the legislative intent and rationale behind the ibc. (Para 6 , 7 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 4. court reaffirms legislative framework and priority assigned to workmen's dues. (Para 8) |
| 5. decision to dismiss the petitions as lacking merit. (Para 19) |
JUDGEMENT
M.R. SHAH, J. 1. By way of this writ petition under Article 32 of the Constitution of India, filed by the writ petitioner – Moser Baer Karamchari Union have prayed for an appropriate writ, direction or order striking down Section 327 (7) of the Companies Act, 2013 (hereinafter referred to as “Act, 2013”) as arbitrary and violative of Article 21 of the Constitution of India.
It is also prayed to issue an appropriate writ, direction or order in the nature of Mandamus so as to leave the statutory claims of the “workmen’s dues” out of the purview of waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to either as “IBC” or “Code”).
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