NEW DELHI: The Insolvency & Bankruptcy Board of India (IBBI) has floated a paper to prevent misuse of insolvency law to settle debt or avoid liability or consolidate companies without regulatory scrutiny. It has highlighted red flags that insolvency professionals should stay alert and inform the National Company Law Tribunal (NCLT) in case it comes across instances of wrongful use of the law.“The board has received information from law-enforcement and other regulatory agencies, indicating that CIRP (corporate insolvency resolution process) framework is, in certain cases, being resorted to with malafide intent – to settle debts outside…
Insolvency Guardian
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