‘Critical Supplies' Under The Insolvency And Bankruptcy Code, 2016

A corporate insolvency resolution process ("CIRP") under the Insolvency and Bankruptcy Code, 2016 ("Code") involves a delicate balance between the interests of various stakeholders, which must be collectively aligned towards the revival of a corporate debtor. One category of such stakeholders is suppliers to the corporate debtor. The continuance of supplies to a corporate debtor may be the cornerstone to ensuring its continued existence and functioning as a going concern¹ , which ultimately ensures a better realization its creditors.² At the same time, a delicate balance must be built into an insolvency framework to adequately incentivize suppliers to support a corporate debtor in distress where payments may for goods and services may not be forthcoming.