In Brief
This case concerned the avoidance of preferential transactions entered into by Jaypee Infratech Limited during its insolvency proceedings. The Supreme Court upheld the NCLT's order discharging security interests created by the corporate debtor over disputed properties under Section 44 of the Insolvency and Bankruptcy Code, 2016. The Court emphasized that the IBC is beneficial legislation aimed at revival of corporate debtors as a last resort before liquidation, not merely for creditor recovery. The Court also held that consideration exists for surety obligations when loans advance to the principal debtor.
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