By VP Singh
For close to a decade, the defining bargain of the corporate insolvency resolution process (CIRP) under Chapter II of the Insolvency and Bankruptcy Code, 2016 has been a stark one. On admission of an application under Sections 7, 9 or Section 10, a moratorium descends and the Board of Directors stands suspended, the management of the corporate debtor vesting in the resolution professional. Admission has meant dispossession, and this “creditor-in-control” architecture — sustained by the Supreme Court as a matter of constitutional and commercial policy — has been the Code’s centre of gravity and, for the promoter watching control slip away, its sharpest deterrent.
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