Stopping Misuse At Inception: Inserting A Pre- Admission Objection Framework Under Section 10 Of The IBC To Enhance CIRP Transparency And Treaty Compliance
Manraj Singh Chandpuri, B.A.LL.B. (Hons.), University Institute of Legal Studies, Panjab University, India.
ABSTRACT
The insolvency filing by Go First grounded 56 planes overnight. The moratorium meant that creditors couldn’t take back their aircraft, thus breaching India’s treaty commitments. While the MCA Notification and Aircraft Objects Bill, 2025, tried to correct this after Go First’s admission, the reputational damage was done. Moreover, neither addressed the procedural gap that allowed the moratorium to be triggered in the first place, as Section 10 allows debtors to file without any pre-admission objection mechanism.
This Article argues for the legislative insertion of Clause (3-A) into Section 10, drafted by the author, as a pre-admission filter that codifies the operational creditors’ right to raise limited objections against abuse. It complements recent IBBI reforms that enhance transparency post-admission, by probing into the scathing point of entry in insolvency. It develops a triple analogy of Swiss Ribbons v. Union of India, wherein, its holding, justifies filters on operational creditors (as Single Analogy); applied again, allows creditor objections against debtor misuse (as Double Analogy); reversed, it protects debtors from frivolous objections (as Triple Analogy). This hypothesis is buttressed through Hohfeldian correlatives and closes the Go First loophole. High-value assets even covered under future treaties are safeguarded due to its universal applicability.
