Insolvency: More tinkering to plug loopholes

We should expect many legal skirmishes and endless tinkering of the IBC rules in future

On November 7, the Insolvency and Bankruptcy Board of India (IBBI) came out with a notification that is a classic example of motherhood statements from a “responsive” regulator when faced with practical issues that escaped the legal pundits and experts while making a new law. The notification reminds us, in case we did not know, that the resolution plan “should come from any person who can really rescue the insolvent business and the committee of creditors is expected to approve the best of them”. The regulator then goes on to instruct how the committee of creditors must conduct itself. The