Undermining auctions

Legal loopholes in bankruptcy process exposed

The Supreme Court (SC) on Monday allowed UltraTech Cement’s purchase of bankrupt Binani Cement to go through, backing an order by the National Company Law Appellate Tribunal (NCLAT). This is a victory for UltraTech and for the committee of creditors of Binani Cement but a severe blow to the integrity of the process embedded in the Insolvency and Bankruptcy Code, or IBC. It is unfortunate for the sanctity of the auctions in the IBC that the apex court has chosen to uphold a decision by the NCLAT that will set the quality of the bankruptcy process back and is not