The Insolvency and Bankruptcy Code, originally designed to unseat promoters of companies defaulting on loans, is now opening a window for some of them to stay on and attempt a revival under creditor oversight.The original framework was unambiguous. Section 29A of the Insolvency and Bankruptcy Code barred wilful defaulters and delinquent promoters from bidding for their own assets, and the Corporate Insolvency Resolution Process (CIRP) moved control away from management to a resolution professional. The rationale was that promoters of defaulting companies could not avail the benefit of any write down by the lenders.The proposed Insolvency and Bankruptcy Code Amendment Bill 2026 introduces a different route. The Creditor Initiated…
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