It has been one year since the Insolvency and Bankruptcy Code,
2016 ("I&B Code") came into effect. The I&B Code
is one of the biggest economic reforms to have taken place
recently. It consolidates the archaic insolvency laws and provides
a unified single legislation extensively dealing with the
insolvency regime in India. One of the highlighting features of the
I&B Code is that it provides a time bound process of 180 days,
extendable only by a further period of 90 days to conduct the
insolvency resolution. During the past one year, there were many
amendments that were made and significant efforts that were put in
to overhaul the I&B Code.
At the initial stage, many financial creditors were hesitant to
proceed under the I&B Code. Part of the inertia may have to do
with the initial days of the I&B Code; but part of it was also
the typical (and severe) agency and moral hazard problems of not
resolving non performing assets (NPAs) when the banking sector is
majorly
