Insolvency And Bankruptcy Code

Personal guarantor insolvency resolution has been going on since late 2019, when provisions for such guarantees to bankrupt firms were notified. But unlike in corporate insolvency resolution process, there was no central electronic system capturing details of cases involving personal guarantors.

With the IBC completing 10 years of existence this year, it's a good time for policymakers to evaluate how well it serves the economy today. Three structural aspects deserve scrutiny, and Section 29A requires a reset to guard against its dampening effect on the deployment of risk capital.

With 11 vacancies and insufficient infrastructure, India's insolvency tribunal is under strain, delaying cases like that of Zee's Subhash Chandra. The Supreme Court has called for immediate improvements, as ongoing insolvency processes now average over 700 days.

The Subhash Chandra personal-guarantee case under India’s Insolvency and Bankruptcy Code (IBC) reminds us of the need to make fine distinctions that too many observers miss. For instance, an insolvency process cannot distribute what a guarantor’s estate does not contain.

Adani Power has made distressed assets a thrifty route to scale, with a third of its operational capacity now coming from acquisitions under the bankruptcy law.

India’s track record of recovering dues based on personal guarantees for corporate loans has been dismal so far. This, along with the eye-popping sums involved, could explain why Subhash Chandra’s case is being watched so keenly.

Artificial intelligence (AI) is here and India’s Insolvency and Bankruptcy Code (IBC) needs to catch up. The adoption of AI by companies could make cases significantly harder to resolve. Here’s what demands the attention of legislators and regulators.

The Supreme Court said proceedings against promoters and directors of a real estate company can continue if they arise from their own independent legal liability, even though proceedings against the company must remain stayed during the moratorium