Resolution of bad loans may face logjam if IBC not streamlined: Experts

Few will go on record explicitly, but there is the fear that there will be a logjam ahead on the IBC front.

In a week from now, the one-year breather which held in abeyance the filing of insolvency proceedings will come to an end. Will there be a spate of suits being filed under the Insolvency and Bankruptcy Code (IBC)? The response depends on whom you reach out to.

“It’s unlikely there will be a rush to file applications on resumption of the IBC process. A lot of work on corporate cases has happened in the prior quarters before the pandemic set in,” says J Samuel Joseph, deputy managing director, IDBI Bank, adding for comfort that the bank will refrain from blindly taking