Section 32A of IBC

Section 32A of the Insolvency and Bankruptcy Code, 2016 provides protection to successful bidders of a corporate debtor. The assets of the debtor are also protected by this section as they constitute a crucial attraction for such bidders. This protection is available only if there is a change in management of the corporate debtor and an approved resolution plan. Recently, the Supreme Court upheld the validity of this section citing the need for a clean break from the past for timely resolution.

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