The object of the Insolvency and Bankruptcy Code, 2016 (“IBC”) is to provide a time-bound framework within which financially/operationally indisposed companies may opt to resolve their dues and maintain a semblance of their going concern. The aim of IBC is to revive companies, with winding up being the last resort. IBC was seen as a lifeline for the struggling businesses to survive. However, fast forward today, the National Company Law Tribunal (“NCLT”) is overburdened and the mandated timeline of 270 days is being exceeded in more than 67 per cent of Corporate Insolvency Resolution Processes (“CIRPs”).
Struggling companies are finding it difficult to sustain and are gradually being weighed down with procedural delays and…