Gaming The System

PROMOTERS WHO DEFAULT ARE TAKING ADVANTAGE OF NEW IBC PROVISIONS AND MISUSING THEM TO ESCAPE ACTION UNDER OLDER LAWS.

- Dipak Mondal

Unscrupulous promoters are trying to manipulate the Insolvency and Bankruptcy Code (IBC). And the provision they seem to be ‘misusing’ most is the one that allows corporate defaulters to start bankruptcy proceedings against themselves. As of now, the IBC provides a stay on the continuation of proceedings or suits, against a corporate debtor and its assets if insolvency proceedings are pending.