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ARTICLE · 12 DECEMBER 2017

Wilful Defaulter Must Not Buy IBC Assets

S.S. Rana & Co.
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The Government has been consistently working towards refining and improving the new legal regime being set forth under the IBC.

IndiaInsolvency/Bankruptcy/Re-Structuring
S.S. Rana & Co. Advocates
S.S. Rana & Co. Advocates
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 In order to protect honest creditors against the unscrupulous debtors who are using insolvency as a shield to evade of their liabilities, the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "IBC") was incorporated. The IBC works in pursuit of insolvency resolution process in a time-bound manner for maximization of value of assets which promotes entrepreneurship, availability of credit and balance the interests of all the stakeholders.

In the recent approach, the President of India vide notification dated November 23, 2017, promulgated Ordinance no. 7 of 2017 (hereinafter referred to as "Ordinance") with a view to strengthen the insolvency process. It has been considered necessary to provide for prohibition of certain persons from submitting a resolution plan who can account for their antecedents, may adversely impact the credibility of the processes under the consideration of IBC. The ordinance has laid down the category of persons not eligible to

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