The missing pillar of insolvency framework

Lack of information utilities to provide high-quality information to make insolvency process longer

The bankruptcy law reforms committee (BLRC) has visualised four pillars to make the insolvency process work efficiently: A private industry of insolvency professionals (IPs); adjudication infrastructure at the National Company Law Tribunal and the Debt Recovery Tribunal; a regulator, the Insolvency and Bankruptcy Board of India (IBBI); and a private industry of information utilities (IUs). The other three pillars have taken shape over the past eight months, but IUs are missing.

IUs, which are an electronic database, are critical to the time-bound resolution process envisaged under the Insolvency & Bankruptcy Code (IBC). Disputes were one of the biggest time-consumers in