Balancing interests under the IBC
A source of conflict has been stemming from competing bidders raising objections to the selection of a resolution plan
The resolution mechanism under the Insolvency and Bankruptcy Code, 2016 (IBC), was operationalized to address the burgeoning non-performing asset (NPA) crisis in the country. Since its enactment, the IBC has been going through a trial by fire that is perhaps unprecedented. Its theme is the need to present an efficient method to resolve financial stress while safeguarding the interests of various stakeholders. While the objective of efficiency has been addressed in the code, the objective of balancing the interests of stakeholders has given rise to a host of discussions.