IBC to override other laws

Two signboards point in opposite directions at the same junction, one put up by the traffic police and the other by the municipality. Which one do you follow? Laws collide in the same way. A State relief law may give a troubled company a breathing space, a tax law may give the taxman a claim on its assets, and a lender’s recovery Act may let the bank take the security. Section 238 of the Code is the Code’s answer to the question: which signboard wins?

In two minutes

Section 238 gives the Code effect notwithstanding anything inconsistent in any other law for the time being in force or in any instrument having effect by virtue of such a law; it is a non-obstante clause, and it applies only to real inconsistency.

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