IBC an ideal tool for solving bad-loan issue

IBC is expected to have a significant impact on the conduct of business in the country

While the government has been pursuing measures to tackle rising levels of non-performing debt in public sector banks, a growing pile of bad debt had also been a concern for the lender community. With its clear and precise outlook towards insolvency, the Insolvency and Bankruptcy Code (IBC) 2016 might not only serve as an ideal tool to solve the bad-loans issue, but is also expected to have a significant impact on the conduct of business in the country.

Under the Code, an insolvency proceeding can be commenced by any creditor (financial or operational) or the corporate debtor itself, by filing