Proposed changes to IBC may augur well, but apprehensions still remain

In its third year, IBC has managed to plug important gaps, but this is not the end of the road with issues coming to light at every turn

Proposed amendments to the Insolvency and Bankruptcy Code (IBC), one of the most-reformed laws of recent times, have laid to rest most of the concerns, but apprehensions remain. 

From the days of Sick Industrial Companies Act of 1985 to the Securitization and Reconstruction of Financial Assets Act, 2002, the IBC has managed to take the learnings of all previous legislation to create a more holistic law. It addressed secured, unsecured as well as the operational creditors unlike any previous Act and also created a dedicated framework of regulator, adjudicators, and information utilities, leading to much better recovery for banks. 

Learnings from the