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Questioning priority: Govt dues in IBC

Courts must safeguard the basic structure of the Insolvency and Bankruptcy Code

IBC cases
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Raghav PandeyM S Sahoo
The Insolvency and Bankruptcy Code (IBC) has a noble objective — resolving the stress of companies. When this is done in the manner the IBC provides — in a time-bound process, calm environment, priority rule for claims, and a clean slate takeover — it yields several benefits. These include maximising the asset value of the stressed person, promoting entrepreneurship, and improving credit availability within the economy. Any deviation from this course frustrates the objectives and denies the intended benefits. Such deviations have originated from various quarters. In most instances, the Supreme Court has rectified them. However, of late, a few
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First Published: Aug 29 2023 | 10:14 PM IST

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