Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Madras High Court: Every Claim Of Operational Creditors Includes Right To Their Property Under Article 300A Of The Constitution
Insolvency & Bankruptcy Code
The Madras High Court, led by Justice N. Seshasayee, stressed that operational creditors' claims embody their property rights under Article 300A of the Indian Constitution. Rejecting a writ petition, it cited precedents recognizing property rights as integral to the right to life. \r
The court emphasized the duty of Interim and Resolution Professionals to conduct thorough investigations to uphold creditors' constitutional rights. This includes examining the debtor's premises, financial records, and pending litigation. The judgment underlined that such due diligence is not complex but requires basic prudence.\r
It concluded by asserting the necessity for proper diligence to safeguard stakeholders' rights, particularly those of operational creditors, during insolvency proceedings.
