In Brief
A former Chairman and Managing Director of Siemens Gamesa filed an insolvency application against his former employer claiming unpaid operational dues totalling over ₹104 crores. The application was filed on 11 May 2020 regarding a default dated 30 April 2020. However, the Insolvency and Bankruptcy Code was amended on 5 June 2020 to insert Section 10A, prohibiting initiation of insolvency proceedings for defaults occurring on or after 25 March 2020 for up to one year. The Supreme Court held that Section 10A applies retrospectively to this case, barring the application despite it being filed before the amendment. The Court reasoned that the legislature consciously chose 25 March 2020 (lockdown date) as the cut-off, and the retrospective bar protects corporate debtors from unprecedented COVID-related distress."
The lawyer headnote and full judgment text are available to registered users.