Supreme Court Dismisses Plea To Direct Centre To Notify Part 3 Of Insolvency & Bankruptcy Code

The Supreme Court on Monday (January 22) refused to entertain a Writ Petition seeking the issuance of mandamus to the Union Government to notify Part 3 of the Insolvency and Bankruptcy Code 2016.

The bench comprising CJI DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra dismissed the matter observing that the issue is settled in the Supreme Court decision of AK Roy v. Union of India that such a direction cannot be issued by the Court.

The CJI remarked that the Court cannot issue a direction that a law which has been passed by Parliament has to be notified. Dismissing the petition, he expressed“ You cannot issue mandamus that the parliament shall notify the statute”

The Supreme Court in AK Roy had held that a writ of mandamus under Article 32 cannot be issued to the Central Government for enforcing Section 3 of the Constitution 44th Amendment Act, 1978 even though the Amendment Act received the assent of the President.

The present writ petition pertains to the seeking of directions in the nature of mandamus to the parliament to issue enforcement notification for Part 3 of the IBC relating to insolvency resolution and bankruptcy for individuals and partnership firms.

The Insolvency and Bankruptcy Code was introduced in Lok Sabha in December 2015 and was passed by the parliament on May 5, 2016. Part III of the Insolvency and Bankruptcy Code [sections 79 to 187] deals with provisions relating to Bankruptcy for Individuals and partnership firms.

Case Details: Seemab Qayyum v Union Of India W.P.(C) No. 1427/2023 PIL-W