Asserting that resolution plans should balance interests of all stakeholders, IBBI chief M S Sahoo has said operationalising the individual insolvency framework as well as developing the market for interim finance are among the priorities for the regulator.
The IBBI was established under the Insolvency and Bankruptcy Code on October 1, 2016.
"The insolvency and bankruptcy resolution has been a reform by the stakeholder, for the stakeholder and of the stakeholder given the progress so far," Sahoo told PTI in an interview.
With swift enactment and implementation, the IBC has caught the "fancy of all stakeholders" as reflected in the numbers — so far more than 700 applications have come up under this law
and around 350 of them have been admitted for resolution.
Listing out the priorities, Sahoo said one is to operationalise the individual insolvency regime in respect of guarantors to the corporates and the individuals having proprietary business.
Besides, the IBBI will work to promote a conducive environment for the development of markets for interim finance, resolution plans and liquidation of assets.
"Addressing irritations and deficiencies in the regulations as soon as we come across those from experience of carrying out transactions," besides expediting the operationalisation of information utilities are among the priorities, Sahoo said.
According to him, information utilities will ensure that authentic information is available to the adjudicating authority and insolvency professionals to complete transactions expeditiously.
"The IBC has caught the fancy of all stakeholders. Debtors, creditors, insolvency professionals and others are enthusiastic about this reform. Tribunals and judiciary have very expeditiously settled several contentious issues having a bearing on corporate insolvency resolution," Sahoo said.
The framework for the Code was in place by December 2016 and the first matter was admitted on January 17 this year.
So far, the National Company Law
Tribunal (NCLT) has decided about 700 applications seeking corporate insolvency resolution under the Code.
"Out of them, about 350, including 11 of the 12 big accounts identified by the RBI, have been admitted, where the corporate insolvency process has commenced," he said.
Earlier this year, the RBI referred 12 large non- performing assets cases for resolution under the Code.
A case is taken up for resolution under the Code only after receiving approval of the NCLT for the same.
"The objective of the Code is insolvency resolution of the corporate debtor for maximisation of the value of its assets and to balance the interests of all stakeholders," the IBBI Chairperson said.
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