Insolvency and Bankruptcy Code: a legislation mired in controversy
The focus of the Insolvency and Bankruptcy Board of India and the government must shift from tinkering with the law to building proper infrastructure
It is unfortunate that the Insolvency and Bankruptcy Code (IBC) is mired in so much controversy. Part of the problem is that the important players in IBC, namely the committee of creditors (CoC) and the resolution professional (RP), while taking decisions, act in a mechanical manner, disregarding the objective of IBC, which is “an Act to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons...and balance the interests of all the stakeholders".
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