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Policy and regulations

Files moving slowly, lenders losing money: Has India really cracked the insolvency code?

The new law is being used as a recovery mechanism rather than a revival tool. Despite several amendments since its inception, the Insolvency and Bankruptcy Code is a reminder of the slow-moving and ineffective procedures of the past.
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3 Jul 2019 6 Mins Read 0 comment
The average resolution time for cases resolved through IBC is 324 days. Getty Images
The average resolution time for cases resolved through IBC is 324 days.
At the fag end of 2016, when the Insolvency and Bankruptcy Code (IBC) was rolled out with much elan, many hoped it would bridge the yawning gap between number of bankruptcy cases filed and actual resolutions. In the first two years of a Reserve Bank of India (RBI)-mandated attempt to get a fix on the big-ticket defaulters, the newfangled architecture
many teething problems but it’s a new law so we will have to wait for it to evolve. We have seen the IBC evolving with time and with various judicial precedents settling uncertain facets of law since 2016, we are heading towards a better regime,” says Singh from A&P Partners. Hopefully, files will move faster in the new world.
At the fag end of 2016, when the Insolvency and Bankruptcy Code (IBC) was rolled out with much elan, many hoped it would bridge the yawning gap between number of bankruptcy cases filed and actual resolutions. In the first two years of a Reserve Bank of India (RBI)-mandated attempt to get a fix on the big-ticket defaulters, the newfangled architecture many teething problems but it’s a new law so we will have to wait for it to evolve. We have seen the IBC evolving with time and with various judicial precedents settling uncertain facets of law since 2016, we are heading towards a better regime,” says Singh from A&P Partners. Hopefully, files will move faster in the new world.

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