IBC doesn’t rewrite a contract

Liquidation under the Insolvency and Bankruptcy Code is often mistaken for a fast-track recovery mechanism. In practice, however, insolvency jurisdiction has clear doctrinal limits, especially when recovery claims arise from disputed contractual relationships. The NCLAT’s decision in Pooja Bahry (Liquidator of Dev Denso Power Ltd.) v. UPRNNL & Anr. draws a firm line between value maximisation and jurisdictional overreach, reiterating that the IBC cannot be used to bypass arbitration or civil adjudication. This ruling serves as a timely reminder that insolvency may change the forum, but it does not rewrite the contract. J the app takes a look.