Valuation Precedents under Insolvency & Bankruptcy Laws

Judgment is a court order that is the decision in a lawsuit. In other words, it is a court decision, spelled out in a court order, that adjudicates a dispute between two parties by determining the rights and obligations of each party. All Judgments create precedents, but not all Judgments are Precedents.

A precedent is an official action or decision that has happened in the past and that is considered as an example or rule to follow in the same situation later. Therefore, it can be concluded that only those judgments that provide reference for future conduct shall be termed as Precedent.

The applicability of precedent depends on the authority making the judgment. The Supreme Court is the highest authority, whose decisions are binding on all courts, including High Courts. Although, where the Supreme Court is not involved or has provided no judgment, then the judgment of the High Court shall be final and binding on the courts within its jurisdiction.

The publication “Valuation Precedents under IBC” covers all precedents relating to valuation provided by the Supreme Court/High Courts under the Insolvency and Bankruptcy Code, 2016 (IBC) that may be referred to for future conduct of matters related to valuation under IBC.

The author has tried to provide readers with a brief understanding of how different Courts in India approach Valuation through their judgments, including a variety of cases to provide a complete perspective of valuation under IBC and related issues.