The Insolvency and Bankruptcy Code, 2016 (“IBC”) was conceived as a time-bound, creditor-driven mechanism to preserve enterprise value and impose market discipline on distressed firms. Over time, however, the functioning of the Corporate Insolvency Resolution Process (“CIRP”) has revealed structural stress. Admission delays, repeated adjournments, litigation at every stage, and information asymmetry between creditors and debtors have diluted the promise of speed. Empirical data published by the Insolvency and Bankruptcy Board of India (“IBBI”) shows that a significant number of cases are either resolved before admission or continue far beyond the statutory timeline once admitted [1].
It is in this context that the Insolvency…