Prompt course corrections have been done to the insolvency law to address the needs of stakeholders, IBBI chief M S Sahoo said on Monday as he emphasised that challenges have made the legislation stronger.
The Insolvency and Bankruptcy Board of India (IBBI) is responsible for implementing the Insolvency and Bankruptcy Code (IBC).
Sahoo said the impact of the code should not be seen just in terms of things under it, but also “on account as well as shadow” of the law.
There have been instances of dues getting settled before a corporate was to be dragged into insolvency process.
“Prompt course corrections” have been done to the code, the IBBI Chairperson said and stressed that, with challenges, the law has become stronger.
The code came into force in December 2016 and the first resolution case was approved in August 2017.
Since its implementation, many provisions of the code have been challenged and the government has also carried out various amendments to the law, including barring defaulting promoters from taking back control of the company after insolvency process.
He was speaking at a conference on ‘Resolving Insolvency in India’ organised by industry body CII.
Source: Business Standards, November 11, 2019