IBC yet to address resolution for insolvencies of group companies

Group insolvency remains an ill-defined area in the IBC. Here's why it needs a clear framework

The Insolvency and Bankruptcy Code (IBC) has been around for nearly seven years, and in these seven years, it has been amended six times. However, it is yet to address a significant concern: group insolvencies.

While the IBC lags in accommodating the consolidation of resolution processes for group companies, courts have frequently intervened to take up group insolvency matters.
 

The absence of a dedicated provision for group insolvency within the IBC has led to notable cases of judicial consolidation. Among these are the consolidation of 13 Videocon group companies, Lavasa corporation and its subsidiaries, and the procedural consolidation of Srei