Lenders likely to opt for IBC for debt resolution of big accounts

May resort to debt recovery tribunals or Sarfaesi Act for the smaller ones

Lenders are likely to opt for the Insolvency and Bankruptcy Code (IBC) for debt resolution of big accounts, but may choose debt recovery tribunals or the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act for smaller ones.

In the three years since the IBC came into existence, much of the legal wrangle around various points of the law — Section 29A, supremacy of financial creditors over operational creditors, the timeline and so on — has been put to rest via court rulings.

And the latest Supreme Court ruling, making way for ArcelorMittal’s takeover of Essar Steel, has