McDowell Holdings ownership battle exposes loopholes in IBC process
Our Partner, Soorjya Ganguli shares his views with MoneyControl in an article titled, “McDowell Holdings ownership battle exposes loopholes in IBC process, say experts” which analyses the on-going ownership dispute between the minority shareholders and a creditor of McDowell Holdings.
Speaking on the remedy available with the minority shareholders in the current scenario, Soorjya stated that, “In this case, the minority shareholders must prima facie show signs of fraud, collusion or malicious intent. The collusion, as alleged, has to be shown in accordance with law in view of the facts and circumstances of the case.”
However, he also noted that, “Any decision based on the commercial wisdom of the CoC is not amenable to judicial review. Further, in view of the explanation to Section 30(2)(e) of the (IBC) Code, any objection raised by minority shareholders would not be tenable,”
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