Lenders should not be compelled to reject resolution plans from promoters. Photo: Reuters
The Insolvency and Bankruptcy Code is one of the biggest reforms of recent times and is expected to be the solution to the countrys highly stressed banking system. In fact, this view is also acknowledged by the World Bank in its Doing Business ranking. Since the advent of the code in December 2016, more than 1,000 cases have been filed at various benches of the National Company Law Tribunal (NCLT) and around 400 cases have been admitted for the resolution of insolvency by the tribunal. The code contemplates transfer of control of the insolvent company from the board of directors (representatives of shareholders) to the committee of creditors (CoC), a…
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