Introduction
The Insolvency and Bankruptcy Code, 2016 ("Code") one
of the more significant legal reforms in India in recent times, was
enacted with the objective of reorganising and resurrecting
corporate debtors in a time bound manner. The aim of the Code is to
maximise the value of assets of the corporate debtor, whilst
balancing the interests of all stakeholders.
The key distinguishing feature of the Indian insolvency process,
is the creditor in control model as opposed to the debtor in
possession regime. The upshot is that once the insolvency process
commences, the corporate debtor's board is suspended and the
incumbent management's power of control is overridden by the
insolvency professional, who conducts the affairs of the corporate
debtor as a 'going concern'. All major decisions are taken
by the committee of creditors ("CoC"). Resolution
plans/bids are invited from prospective applicants with a view to
rescuing the company. Bids are assessed by the CoC on
