According to Soumitra Majumdar, partner, JSA Advocates & Solicitors, the adjudicating authority is mandated to consider only instances of default for initiation of corporate insolvency resolution plan (CIRP). “Narrowing the scope of adjudication should significantly lessen the adjudication timelines and thus solve for the admission delays and the consequent value erosion,” Majumdar says.
The eligibility of the defaulting entities which can be resolved under this process would depend upon the amount of assets, Income and amount of debt, which are yet to be notified. “This is a very unique and important step and for it to be successful, regulations to implement such amended provisions should not be very water tight,” feels…