With defaulters themselves triggering the proceedings, resolution could happen faster
BL Research Bureau:
Essar Steel tried to stay insolvency proceedings against it by moving the Gujarat High Court. But not all Indian companies think along similar lines. Data put out on the website of the Insolvency and Bankruptcy Board of India show that Indian borrowers are gradually taking to the idea of filing for insolvency themselves.
Of the 148 cases approved so far by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC), more than a third were initiated by the defaulters themselves.
This heartening trend is thanks to the provision under the new bankruptcy code that allows a borrower, who …
Read the full article at: http://www.thehindubusinessline.com/economy/debtors-have-filed-over-33-of-insolvency-cases/article9785327.ece
