Status of ‘other’ creditors under Insolvency and Bankruptcy Code 2016 – International Law Office (registration)

In 2016 India overhauled its existing legal framework on bankruptcy and insolvency processes and the new Insolvency and Bankruptcy Code 2016 aimed at streamlining the bankruptcy resolution process was enacted.

Simultaneously, an increasing level of non-performing assets in the Indian banking sector triggered the promulgation of the Banking Regulation (Amendment) Ordinance 2017 on May 4 2017. This amendment, via the insertion of Section 35AA into the Banking Regulation Act 1949, gave the government the power to ask the Reserve Bank of India (RBI) to issue directions to any banking company requiring such bank to initiate insolvency proceedings with …