Introduction
When Parliament enacted the Insolvency and Bankruptcy Code, 2016 (IBC), it set out to do something India’s fractured insolvency landscape had never managed before create a single, time-bound, predictable mechanism for resolving corporate stress. Before the IBC, a creditor seeking recovery from a defaulting company had to navigate a maze of forums: the Debt Recovery Tribunal under SARFAESI, winding-up petitions before High Courts under the Companies Act, proceedings under the Sick Industrial Companies (Special Provisions) Act (SICA), and BIFR referrals that often dragged on for decades. The result was systemic uncertainty, perennial delays, and an economy weighed down by unresolved non-performing assets.
Read the original article here