A test case

DHFL resolution will strain IBC, but is systemically vital

The Reserve Bank of India (RBI), which serves as the banking regulator, has superseded the board of the troubled non-banking financial company Dewan Housing Finance Corporation (DHFL) and appointed an ex-banker as the company’s administrator. This is in order to prepare DHLF to enter the process under the Insolvency and Bankruptcy Code (IBC); the National Company Law Tribunal will have to appoint the administrator as the appropriate resolution professional for this case. DHFL will be an important test case, because it is the first such systemically important financial company to be entrusted to the insolvency and bankruptcy process under new