Business Standard

Questioning priority: Govt dues in IBC

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

IBC cases

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
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 29 2023 | 10:14 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to