Why The Bankruptcy Code Needs A Makeover

The Insolvency and Bankruptcy Code (IBC) in India is facing challenges, with resolution timelines increasing to 723 days for financial creditors, 724 days for operational creditors, and 577 days for corporate debtors. Experts, including Rajeshwar Rao, deputy governor of the Reserve Bank of India, and Ashwini Kumar Tewari, managing director of the State Bank of India, suggest reforms like dedicated NCLT benches and stricter procedural norms to improve the IBC process. Divyanshu Pandey, partner at JSA, emphasizes the need for infrastructure ramp-up and commercially savvy judges in NCLTs and NCLAT to stop differing views on IBC and make it more effective. The article highlights the importance of reimagining the IBC to achieve its objectives of resolution over liquidation and preserving recovery value. Read Article