Patience with the IBC

Time to reform will be after behavioural changes

Speaking at a function organised to mark the second anniversary of the Insolvency and Bankruptcy Code, or IBC, Union Finance Minister Arun Jaitley defended the integrity of the process and suggested that any major changes to it should wait until the initial rush of bankruptcies had died down. While agreeing that there may be a useful combination of court-approved bankruptcies and out-of-court settlements, which would be an optimal use of resources, Mr Jaitley correctly pointed out that the initial years of the IBC were important to demonstrate that the legal system would no longer allow too much leeway to delinquent