The Fork between IBC Act and Benami Act

The Supreme Court’s decision in S. Rajendran v. Deputy Commissioner of Income Tax (Benami Prohibition) marks a significant clarification at the intersection of insolvency law and sovereign confiscatory powers. The case presented a direct jurisdictional conflict between the Insolvency and Bankruptcy Code, 2016 and the Prohibition of Benami Property Transactions Act, 1988. At its core, the dispute concerned whether insolvency tribunals could examine attachment orders passed under a penal statute during liquidation proceedings. The ruling decisively delineates the boundaries of NCLT jurisdiction and reinforces the autonomy of public law enforcement mechanisms.