 "banks, moratorium, loans, IBC, nclt")
The Insolvency and Bankruptcy Code, 2016 (IBC) amendment inserted Section 10A, restricting all filings in perpetuity for defaults that occurred for a period of one year due to Covid-19. As this preclusion gets lifted in March 2021, we are likely to see a flood of filings, particularly given prudential and provisioning issues for banks and international creditors. The Reserve Bank of India’s (RBI’s) Financial Stability Report indicates an escalation of gross non-performing assets to 14.8 per cent. This, along with the approaching fifth anniversary of IBC, is an opportunity to build on its success.
A pre-packaged resolution framework could allow
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