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Falling out of favour: Consultancies and law firms suggest IBC revamp

Investors feel IBC's promised twin benefits - a time-bound process and assurance of a clean slate - don't necessarily come through

gavel, Insolvency, IBC, firms
There is also a sense that NCLT often goes beyond its remit by raising questions on the commercial wisdom of the Committee of Creditors (CoC)

For all its promise of redeeming stressed companies, the Insolvency and Bankruptcy Code (IBC) is falling out of favour with the industry, which has pointed out several roadblocks to the government. These range from time-consuming litigation to the threat of coercive action post the resolution process. In a series of representations to the corporate affairs ministry, leading consultancies and law firms have suggested a revamp of the IBC post the suspension of initiation of corporate insolvency resolution process. Dogging delays Investors feel IBC’s promised twin ...