In Brief
The Supreme Court examined three critical issues: whether the IBC overrides the Customs Act during insolvency; whether a Liquidator can abandon a Swiss Challenge sale process mid-stream; and whether courts can judicially review the Liquidator's commercial decisions. In Civil Appeal No. 7667/2021, the Court held that the IBC prevails over the Customs Act once moratorium is imposed. Customs authorities can only assess duties but cannot recover them through sale or confiscation during insolvency. In Civil Appeals Nos. 7722 & 7731/2021, the Court held that Liquidators have discretion to choose sale methods to maximize asset value and are not bound by stakeholder advice. An Anchor Bidder has no vested right beyond Right of First Refusal. Commercial decisions of Liquidators are not subject to judicial review if supported by tender terms and stakeholder consultation."
The lawyer headnote and full judgment text are available to registered users.