Introduction – IBC Yearly Round-Up 2022

The Insolvency and Bankruptcy Code, 2016 ("Code") came into effect on 1.12.2016 as transformative legislation to ensure a healthy behavioural change in the creditor-debtor relationship and reform the insolvency space in India. Although the Code was touted as "the" success story in its initial years, there are rising concerns that the Code is losing much of its sheen.

Some of the valid criticisms and concerns centre around excessive delays, slow adjudication, loss of value of assets in the resolution process, unjustified haircuts, the limited scope of the pre-pack insolvency resolution process, etc. It is worth noting that issues such as delays and pace of adjudication are not issues with the Code but rather a result of the slow and bureaucratic process involved in selection of members of the adjudicating authorities.