Inherent Powers of NCLT/NCLAT vis-à-vis IBC

Abstract

In the matter of Swiss Ribbons v. Union of India, the Hon’ble Supreme Court stated that NCLT/NCLAT may use inherent powers, in case of withdrawal application prior to constitution of creditor’s committee. The author by way of this paper has tried to explore the extent of inherent powers, if any, enjoyed by NCLT/NCLAT under the Insolvency and Bankruptcy Code, 2016. The author has relied on principles laid down by the higher judiciary over the years with regard to the use of inherent powers by the courts/tribunals. Also, the decision of the Hon’ble Supreme Court has been analysed in light of the established principles of jurisprudence.

Keywords: Inherent Powers, NCLT, NCLAT, Insolvency, Bankruptcy, IBC