The Conundrum Of Distribution Under IBC

The Insolvency & Bankruptcy Code 2016 ("Code") was enacted with a view to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, limited liability partnerships, partnership firms and individuals in a time-bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.

It has been a little over two and half years since the Code was enacted. Since then, a plethora of litigation on issues including the interpretation of the Code have given sufficient reasons for the lawmakers to plug the gaps in the Code. The intent of the lawmakers is clear and evident with the pace at which the amendments are being introduced to address the dynamic industry in debt resolution and to ensure that the Code does not end up being yet another obsolete piece of legislation overtime.