The Paradox: More Closures Than Revival?
India’s Insolvency and Bankruptcy Code (IBC) was designed to resolve and revive struggling companies. Yet, a significant majority of cases now end in liquidation instead of successful recovery plans. Data from the Insolvency and Bankruptcy Board of India (IBBI) suggests the IBC is increasingly becoming a tool for faster business closures, raising questions about its original intent.
Late Filings Doom Revival Chances
Many companies enter the insolvency process, known as CIRP, when they are already too far gone to save. Operations may have stopped, staff may have left, and company assets may have lost significant value. When a business reaches this point, revival is extremely difficult. Liquidation…