Experiencing the IBC: Mandatory schedules should not be diluted

Cases like Jaypee should not result in wrong law or erroneous principles being laid down which destroy the orderly application of the IBC for NPAs

We are on the cusp of consideration of resolution plans for non-performing assets (NPAs) under the bankruptcy framework. Three issues have surfaced as prominent learning on the journey for successful implementation of the Insolvency and Bankruptcy Code (IBC). The need for a timetable for clockwork precision in triggering off events in the IBC is essential if we are to efficiently sell off distressed assets to right buyers and cut down losses to the banks. The tendency to dilute mandatory schedules as directory is a disaster in the making.

Compulsory duties through statutory change requiring the key managerial personnel, directors and the