ICAI has suggested implementation of specialized measures to the challenges posed by defunct companies in the corporate insolvency resolution process (CIRP) and streamline the insolvency resolution process. The Insolvency and Valuation Standards Board (I&VSB) of the Institute of Chartered Accountants of India (ICAI) has released a study report on the efficacy of the Insolvency and Bankruptcy Code (IBC), 2016, which highlights these challenges.
The report reveals that defunct companies, characterized by a lack of ‘going concern’ status or prior classification under the Board for Industrial and Financial Reconstruction (BIFR), disproportionately burden the CIRP mechanism, leading to delays and inefficiencies.
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