Five years ago, the Insolvency and Bankruptcy Code (IBC) was passed by the Parliament, bringing about a structural change in the framework that governs the corporate insolvency resolution process in India. The IBC provides for a time-bound resolution of firms, addressing the vexed problem of firm exit in India. It has strengthened the hands of creditors in enforcing their rightful claims against corporate debtors. The threat of losing control over their company has emerged as a powerful deterrent for errant promoters not wanting to meet their financial obligations. It has also provided operational creditors typically micro, small and medium enterprises a powerful tool to negotiate the payment of dues with the larger firms. In fact, ab…
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