The speed of resolution process has to further improve so as to make the Insolvency & Bankruptcy Code more responsive to the large number of corporate debtor cases pending, however, the outcome is quite encouraging said Dr. M S Sahoo, Chairman, Insolvency and Bankruptcy Board of India (IBBI). Delivering the keynote address through video conferencing from Delhi at a session on “Two years of Session on Experience Insolvency of Last 2 Years of Insolvency Resolution Process under IBC 2016 – Insights and Challenges” organised by Bangalore Chamber of Industry and Commerce (BCIC) in Bangalore Dr. Sahoo said: “The IBC has been one of the biggest reforms the country has undertaken so far and this grants the ultimate freedom to exit. The outcome has been very encouraging so far. The IBC provides a formal market mechanism to deal with failures.”
While seeking inputs from the industry to hasten the process of case disposals, Dr. Sahoo said: “Over the last two years, there has been rapid strides in the implementation of the Code. We have the entire ecosystem and regulatory framework in place now. About 1300 corporate debtor cases have been admitted into the corporate resolution process and of these, 300 have completed the process either through liquidation or resolution”.
Dr. Ashok Kumar Mishra, Member (Technical and HoD), National Company Law Tribunal (NCLT) delivering the Guest of Honour address specified that out of nearly 12,000 cases referred so far, nearly one-third were resolved even before the admission stage given the teeth the Code has assumed over the last 2 years. In many cases, a mere reference to the process has brought forward resolution which would not have otherwise been resolved in normal course. He hoped the deliberation will add value to strengthening the process and aid faster resolution.
Delivering the Welcome address at the session Mr. Kishore Alva, President-BCIC & Joint President and Executive Director, Adani - Udupi Power Corporation Ltd. said: “Despite the various teething issues that the IB Code has encountered in its relatively short journey, the spirit and the object of the Law has been adequately demonstrated by the various cases that have been decided.”
Mr. N Venkatakrishnan, Chairman, Banking, Finance and Corporate Affairs Expert Committee, BCIC delivering the theme setting address at the session said: “The objective of the IBC is to maximise value of assets and balancing the interests of various stakeholders. The objective is to put back the organisation onto a firm viable track so that the stigma of the past is not carried forward. From this perspective the program has involved people from the lender side, organisation which has undergone a resolution process as well as experience of Resolution Professionals. He expected the end output to be of value to the Board as well as NCLT”.
Over 50 professionals actively involved in IBC resolution mechanism, participated in the day-long session where Institute of Company Secretaries of India (ICSI) also participated at this critical event.