Home / Industry / Banking /  IBC working like a typical court, not enough benches in place: R K Bansal

The Insolvency and Bankruptcy Code (IBC) has worked well so far but has erred to some extent in the way it works resembling a typical court where there are not enough benches in place, said RK Bansal, CEO, Edelweiss ARC.

"It is is the basic question of the asset that's there in the system. Now the only thing where IBC faulted to some extent was -- not many benches; IBC started working as a typical court; and there are no good cases that are being referred to the IBC," Bansal said at 14th mint Annual Banking Conclave.

The union government introduced the IBC in 2016 to resolve stressed assets of insolvent companies. This was intended to tackle the bad loan problems that were badly affecting the banking system.

The objective of the law was to consolidate and amend all existing insolvency laws in India so that there is simplification and expedition of the insolvency and bankruptcy proceedings in India.

On the same issue of performance of IBC so far, Aniruddha Sen, Partner, Trilegal said: "There are some gaps with the IBC, but on paper, it's a good law. The biggest issue is the judicial system. The availability of tribunals and justices to apply the law correctly. There is a case for more. Overall, IBC is a case of good law but it has been frustrated by the fact that its novel, which is why I think it has led to slightly less than expected performance."

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