How NCLT Chennai's order may restrain the freedom of creditors' panel

Going by a recent order of the NCLT Chennai bench, in the case of Ashok Magnetics Limited, this critical aspect of the code is likely to be reviewed

Since its inception, the Insolvency and Bankruptcy Code (IBC) has been hailed as a monumental reform that would help tackle the problem of bad loans plaguing the Indian financial system.

Part of the code’s appeal was that it minimised the role of the state and the judiciary in the insolvency process. Instead, it provided space for financial creditors to take commercial decisions by introducing a time-bound transparent price-discovery process for bad loans between buyers and creditors.

Going by a recent order of the NCLT Chennai bench, in the case of Ashok Magnetics Limited, this critical aspect of the code is likely to