The Insolvency and Bankruptcy Code (IBC) was enacted to consolidate and streamline the insolvency resolution process for corporates, partnership firms, and individuals in a time-bound manner. It aims to hasten the resolution process and thereby maximize the value of the assets of such entities. The IBC seeks to balance the interests of all stakeholders, including creditors and debtors. Over 8000 cases have been referred to IBC since its enactment, and as of September 2024, around ₹3.5 lakh crore has been recovered by creditors through the process.
Recently, in ‘Kalyani Transco v. Bhushan Power and Steel Ltd,’ an issue was raised by the Appellants regarding the distribution of EBITDA (Earnings Before Interest, Taxes,…