Cooperating With Resolution Professionals: A Cornerstone Of Effective Resolution

The Insolvency and Bankruptcy Code, enacted in 2016, revolutionized India's approach to corporate insolvency. It established a time-bound process aimed at either reviving financially troubled companies or ensuring an orderly liquidation. This efficient and transparent framework benefits all stakeholders by creating a streamlined approach to resolving financial distress. However, the success of this process hinges on complete information and cooperation by the Corporate Debtor and associated persons. S. 19 of the IBC addresses this critical need by mandating cooperation from key personnel associated with the corporate debtor.

Introduction

The Insolvency and Bankruptcy Code, 2016 ('IBC') provides a structured approach to corporate financial distress through the corporate insolvency resolution process ('CIRP'). Creditors or the company itself can initiate CIRP by filing an application with the adjudicating authority ('AA'). Upon approval, the next step is the