“A MECHANISM THAT EXPECTS NPAS TO FIND THEIR OWN SOLUTIONS IS USELESS”
Jul 23, 2020
3 minutes
PHOTOGRAPH BY SHEKHAR GHOSH
What are the legal implications of suspending IBC?
The implications of suspending the corporate insolvency resolution (CIR) process indicates lack of capacity of tribunals, inability to deal with lack of market demand for stressed assets in the CIR process, and ban on existing promoters remedying the default. It also indicates excessive litigation slowing down the resolution process. In the absence of a white knight or a third-party promoter stepping in to take over, the ban on existing promoters continuing with the company is deeply problematic. There is a moral dilemma. The
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