The Insolvency and Bankruptcy Code, 2016 was a watershed moment in India’s corporate regulatory landscape. It replaced the patchwork of old laws and consolidated it within a single and efficient insolvency framework with a goal to rescue viable companies and to ensure a seamless exit for those that were beyond repair. The core objective of the code was clear- maximisation of asset values, encouraging entrepreneurship through a seamless exit option, increase lender confidence- and to overall curate a balanced resolution process.
However, the journey from on-paper to on-ground reality was presented with a plethora of challenges. The Code’s promise of a speedy resolution was eventually grounded by procedural delays, prolonged litigation….