IBC revisit needed, in law and practice

Apart from fixing procedural and mindset issues, new legislation is required around pre-pack laws for all companies

- ABIZER DIWANJI

THE PROPOSED AMENDMENTS to the Insolvency and Bankruptcy Code (IBC) are welcome as they deal with delays in resolution by National Company Law Tribunal (NCLT), government agencies, and promoters. The changes also plan to augment implementation and improve the creditors' voices in the liquidation process. All of these are welcome as the IBC's track record glaringly tells that we need change.

Without doubt, IBC is one of the best legislations in India's recent history. The law was drafted maturely to cover every aspect, but the rules in certain instances went contrary. The behaviour of its various pillars, the courts, creditors, resolution professionals, and corporate debtors also leaves a lot to be desired. The regulator, which paid attention to only one of the pillars, was left with no choice but to be hard on the regulated and was unable to regulate the other pillars, all of which together drive the success of this legislation. A glance at some statistic confirms this.