Insolvency and Bankruptcy Code: The loopholes that need to be plugged – Business Today

As the 12 big cases referred under the Insolvency and Bankruptcy Code (IBC) to the National Companies Law Tribunal (NCLT) approach the 180 day deadline for resolution (though it can be increased by another 90 days), both the loopholes that need to be plugged and the infirmities in the Code are becoming clearer.

While the team drafting the IBC had taken care to leave as little ambiguity as possible in the wordings, it was always known that the clauses and practicality of the code would be tested once the cases actually came up before the NCLT. About a year and a half after the IBC became a law, the government came out with an ordinance in November 2017 to make it di…

Read the full article at: https://www.businesstoday.in/opinion/prosaic-view/insolvency-and-bankruptcy-code-the-loopholes-plugged/story/272483.html