The Insolvency and Bankruptcy Board of India’s (IBBI) proposal to include an option of mediation for operational creditors (OCs) under the Insolvency and Bankruptcy Code (IBC), should be looked into “seriously”, as it will cut the burden of NCLTs, said Anita Shah Akella, joint secretary, ministry of corporate affairs on Tuesday.
“The (voluntary mediation) proposal needs to be looked into seriously, as about 70% of withdrawal in pre-admission stage (of corporate insolvency resolution process) is mostly by the OCs,” Akella said at the IIIPI’s 8th Foundation Day event.
“The OCs are using IBC more like a recovery mechanism…Once the voluntary mediation procedure is introduced, the OC cases will reduce to a large extent,…
