By Amitabh Kant & Richa Roy
The Insolvency and Bankruptcy Code (IBC), 2016, is among the most crucial structural reforms undertaken by this government. Yet, for IBC to be effective, the principles at the heart of the legislation must be respected.
First, there has to be timely outcomes within 180 days (270 days for rare, complex cases), failing which there will be the credible threat of liquidation. Second, commercial decisions regarding resolution and viability should be taken by the Committee of Creditors (CoCs), whose money is at stake.
Third, the National Company Law Tribunals (NCLT) role should be adjudicating critical issues of justice, such as compliance with procedural requirements, overseeing the Insolvency Professional (IP), an…