https://www.taxtmi.com/caselaws?id=437336 Constitutional challenge to the exclusion of Sections 326-327 of the Companies Act in insolvency liquidations was rejected: the Court held that Section 327(7) validly requires liquidation distributions to follow the IBC waterfall under Section 53, not the Act's preferential payment rules. The Court reasoned the IBC creates a distinct insolvency regime balancing secured creditors and workmen, with protective measures for workmen claims where secured creditors realise security; the legislative classification is not arbitrary and does not violate equality or fundamental rights. Writ petitions were dismissed and asset distribution in IBC liquidation must follow the Code. en-us Tue, 02 May 2023 00:00:00 +0530 Tue, 10 Feb 2026 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437336 Constitutional challenge to the exclusion of Sections 326-327 of the Companies Act in insolvency liquidations was rejected: the Court held that Section 327(7) validly requires liquidation distributions to follow the IBC waterfall under Section 53, not the Act's preferential payment rules. The Court reasoned the IBC creates a distinct insolvency regime balancing secured creditors and workmen, with protective measures for workmen claims where secured creditors realise security; the legislative classification is not arbitrary and does not violate equality or fundamental rights. Writ petitions were dismissed and asset distribution in IBC liquidation must follow the Code. Case-Laws IBC Tue, 02 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437336