India’s insolvency framework has undergone a major transformation over the past decade through the Insolvency and Bankruptcy Code (IBC), 2016, which replaced a fragmented and delay-ridden system with a unified, creditor-driven and time-bound mechanism for resolving financial distress.
The reform, considered one of India’s most significant financial sector overhauls, was introduced at a time when Indian banks were grappling with mounting bad loans and insolvency proceedings often stretched for years across multiple legal forums. The earlier framework frequently resulted in erosion of asset value, weak recoveries for creditors and low investor confidence, while financially stressed companies continued operating without resolution…