Challenges Have Made Insolvency And Bankruptcy Code Stronger: IBBI Chief
IBC’s impact shouldn’t be seen just in terms of things under it but also “on account as well as shadow” of the law, says MS Sahoo.
Prompt course corrections have been done to the Insolvency and Bankruptcy Code to address the needs of stakeholders and challenges have only made the law stronger.
That’s according to MS Sahoo, chairperson of the Insolvency and Bankruptcy Board of India, responsible for implementing IBC in India.
According to him, IBC’s impact 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 the insolvency process.
Sahoo was speaking at a conference on 'Resolving Insolvency in India' organised by industry body Confederation of Indian Industry in New Delhi.
The bankruptcy law came into force in December 2016 and the first resolution case was approved in August 2017.
Since its implementation, IBC provisions has been challenged in courts, changes too have been made by way of amendments. One of the key IBC amendments includes barring of defaulting promoters from taking back control of the company after the insolvency process.