SC calls out gaps in IBC, calls for more oversight of creditors' committee

The recent Jet Airways' liquidation case prompted the apex court to highlight how tribunal members often lack the domain knowledge required in high-stakes insolvency matters

The Supreme Court in its recent order on Jet Airways’ liquidation called the case an “eye opener” that has brought to light the deficiencies in the Insolvency and Bankruptcy Code (IBC). The top court laid into the role all stakeholders including creditors, applicants and adjudicating authority in the insolvency process, it has particularly suggested the need for better enforcement of code of conduct for the Committee of Creditors (CoC). 

Five years since its approval, the Jet Airways resolution plan had not been implemented with the successful applicant the Jalan Kalrock Group and the CoC led by State Bank of India