SWISS RIBBONS PVT. LTD. vs UNION OF INDIA

The Supreme Court examined the constitutional validity of the Insolvency and Bankruptcy Code, 2016, particularly focusing on the appointment of members to the NCLT and NCLAT, which was argued to contravene the precedent set in Madras Bar Association v. Union of India, (2015) 8 SCC 583. The Court held that the legislative scheme differentiating between financial and operational creditors under Sections 7, 8, and 9 of the Code lacks intelligible differentia, rendering it discriminatory and manifestly arbitrary, thus raising concerns about the efficacy of remedies available to operational creditors. The judgment emphasized the need for compliance with prior rulings regarding tribunal appointments and administrative oversight.