We are pleased to share that Argus Partners successfully represented Piramal Finance Limited ("Respondent") before the Calcutta High Court in a matter concerning the maintainability of a writ petition filed to challenge and stall personal insolvency proceedings initiated under Section 95 of the Insolvency and Bankruptcy Code, 2016 (“IBC”).

The Calcutta High Court, while deciding the issue, held that a writ petition under Article 226 of the Constitution cannot be invoked to halt personal insolvency proceedings, especially when an effective and comprehensive statutory remedy is available before the Adjudicating Authority (NCLT). The Court reaffirmed that questions relating to default, validity of notices, and issues arising under the IBC framework must be adjudicated within the statutory mechanism under the Code and not through premature writ proceedings.

The judgment reinforces the principle that the IBC provides a complete code governing personal insolvency, and High Courts should refrain from interfering at a pre-adjudication stage when parties have adequate remedies under the statute.

The team at Argus Partners advising the Respondent before the Calcutta High Court consisted of Somdutta Bhattacharyya [Partner], Kiran Sharma [Principal Associate (Designate)] and Sagnik Aditya [Associate].