IBC Section 58: Applicability of Chapter II to this Chapter

Section 58 of Insolvency and Bankruptcy Code, 2016: Applicability of Chapter II to this Chapter

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

The process for conducting a corporate insolvency resolution process under Chapter II and the provisions relating to offences and penalties under Chapter VII shall apply to this Chapter as the context may require.

Legal Commentary & Landmark Judgments: Section 58

Section 58 provides that the general substantive and procedural provisions of Chapter II (CIRP) apply mutatis mutandis to the Fast Track process, subject to modified timelines.

Mutatis Mutandis Application: The provisions for corporate insolvency resolution process under Chapter II shall, mutatis mutandis, apply to the fast track process under this Chapter.
Application of Moratorium & IRP Rules: Moratorium under Section 14, appointment of IRP under Section 16, and CoC voting under Section 21 apply fully.
Modified Subordinate Regulations: Governed by the IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court confirmed that the core statutory protections of the Code (including moratorium and creditor democracy) apply seamlessly to fast-track processes by virtue of Section 58.
ArcelorMittal India Pvt. Ltd. v. Satish Kumar Gupta (2019) 2 SCC 1: Affirmed that Section 29A disqualifications apply equally to Fast Track CIRP resolution applicants under Section 58.

Courtroom Practice & Strategic Litigation Guidance:

In Fast Track CIRP, apply standard CIRP rules: Section 14 moratorium halts all civil suits, Section 29A bars promoter bidding if in default, and the Committee of Creditors exercises supreme commercial wisdom under Section 58.