The Insolvency and Bankruptcy Code, 2016 (IBC) was brought in as a time-bound solution to the problem of interminable winding-up proceedings. It provides for strict timelines to complete the resolution process, even as the company keeps its business running.
However, adherence to timelines has proved challenging in practice. We are looking at an average of over two years to conclude the resolution process. From time to time, courts have had to step in to provide answers to the problems posed by resolution processes that did not finish on time.
A subset of these problems is when the procedure provided in a different legislation delays resolution. One such problem arose in Independent Sugar Corporation Ltd. v Girish Sriram Juneja…
