Insolvency and bankruptcy code: The emerging landscape for resolution of stressed assets in Indian banking

The Insolvency and Bankruptcy Code marks a break from the past. The new code for resolution of stressed assets is designed to streamline corporate insolvency resolution process in a completely new manner. It is designed to prevent value destruction in cases of corporate distress. The resolution process is a representative action for the general body of creditors instead of recovery of money for just an individual creditor. Being a time bound process to resolve cases within 180 days extendable to 270 days; the IBC has received praise and attention from multilateral agencies as well as from foreign investors. The enthusiastic response and dynamic activity in terms of number of applications filed for resolution, their positive outcome and quantum of NPAs to be resolved has brought Insolvency and Bankruptcy Code in the forefront. We have attempted to capture the key regulations and processes with regards to resolution of NPAs and emergence of Insolvency and Bankruptcy Code and its performance in this short period of time. The Insolvency and Bankruptcy Code has brought about a paradigm shift in the resolution of Indian banking sector.