The Insolvency and Bankruptcy Code in India is unable to realise its potential because its provisions are being notified in bits and pieces and not at one go, say professionals.
By not notifying the sections that will make the part of the code on bankruptcies of individuals effective, the interests of the guarantors are not being safeguarded, while companies enjoy the 180-day breather.
The current law is somewhat biased in favour of the debtor, as evidenced by the fact that it does not have to settle its dues for 180 days after filing for insolvency, experts say.
Insolvency professionals say a delay in notifying the bankruptcy provisions will put undue pressure on guarantors as creditors will …
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