Bad debts to break: Challenges, achievements of India's insolvency law

The Insolvency and Bankruptcy Code aimed to speed up loan recovery when it came into force in Aug 2016. Woeful infra and legal issues have held up tribunals, but settling bad debts is well on its way

The January 25 Supreme Court judgment on the constitutional validity of India’s fledgling insolvency law in its "entirety" is a booster dose for the lenders who are left with no choice but to clean up the financial system of the mound of toxic assets, accumulated over past few years through poor appraisal of projects, reckless lending and indifferent monitoring.
 
This, along with the National Company Law Appellate Tribunal (NCLAT) ruling in the last week of December on a personal guarantor’s rights, will perk up the moribund insolvency law, which promises a lot but has not delivered much, with smart