NEW DELHI : The Supreme Court on Monday said judicial delay” was the main reason for the failure of the insolvency regime in India prior to the 2016 Insolvency and Bankruptcy Code (IBC), as it urged company law tribunals to strictly adhere” to the timelines under the new law and clear pending resolution plans.
A bench of Justices D.Y. Chandrachud and M.R. Shah emphasised that the IBC mandates a 330-day outer limit for conclusion of the corporate insolvency resolution process (CIRP). Company law tribunals must therefore remain mindful that inordinate delays cause commercial uncertainty, degradation in the value of the corporate debtor and makes the insolvency process inefficient and expensive.
Judicial delay was one of the major reas…
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