Thursday, July 1, 2021
Introduction
The government needs to amend the IBC regulation and recognize the difference between various classes of creditors basis priority and value of security interest in the context of corporate insolvency resolution process and corporate liquidation process while ensuring that the ultimate objective of the Code is not obfuscated.
The treatment of inter creditor and subordinate agreements under the Insolvency and Bankruptcy Code, 2016 (IBC and Code) has remained a subject of much debate since the inception of the Code. Over the years, it has raised critical issues in both the Corporate Insolvency Resolution Process (CIRP) as well as the Corporate Liquidation Process (CLP).
