In a significant judgment given on 6 September 2022, the Hon’ble Supreme Court held that the State Government is a secured creditor under the Insolvency and Bankruptcy Code, 2016 (IBC). It further reiterated the position that a resolution plan that is not consistent with Section 30(2) of IBC would be invalid and not binding on stakeholders. The issue involved in this far-reaching judgment is summarized in the following paragraphs.
