You are here: Home » Economy & Policy » News
Business Standard

IBC segregates judicial, commercial aspects of insolvency for flexibility

IBC provides for a market-determined and time-bound insolvency resolution process

Press Trust of India  |  New Delhi 

insolvency, NPAs, banks, mutual fund, debt, loan

The has segregated the judicial and commercial aspects of whereby stakeholders have the right to decide on what suits them, IBBI chairperson M S Sahoo said today.

The Code, which became operational in December last year, provides for a market-determined and time-bound insolvency resolution process.

The Insolvency and Bankruptcy Board of India (IBBI) is implementing the Code.

Sahoo said there is an oversight mechanism, that includes IBBI and (NCLT), to facilitate the transaction that a market participant wishes to do while the approval of insolvency resolution plan is done by the stakeholders concerned.

"The IBC actually has segregated commercial aspects and judicial aspects... It has put commercial aspects in the hands of stakeholders, judicial aspects with the tribunal and with all that it has put a time line with firm consequences," Sahoo said here.

In case the process is not completed within 180 days time, then the company concerned would go into liquidation.

"That is the disincentive if they don't do it within the time line. The incentive is that they stand to gain if the process goes through and they have the right to take the decision on what suits them the most," he noted.

More than 150 transactions are going on under the Code.

Sahoo was speaking at an event organised by industry body

Amardeep Singh Bhatia, joint secretary at the corporate affairs ministry and Pavan Kumar Vijay, chairman of advisory firm Corporate Professionals Capital, among others, were present.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, July 15 2017. 14:56 IST