A performance appraisal of IBC

Despite potential biases introduced by the Dosa approach in analysing its efficacy, the law appears successful in delivering on its key parameters

The performance appraisal of the Insolvency and Bankruptcy Code (IBC), 2016, has been a favourite pastime for many, with some adopting the Dosa (decision-oriented systematic analysis) approach. This approach predetermines the desired appraisal outcome and then devises a methodology to yield that outcome. For example, they predetermine a poor/negative outcome. They choose recovery as the performance metric, select a purposive sample, underestimate recoveries, overestimate claims, compute a low recovery ratio, and consequently assert the poor performance of the IBC.

However, it is important to note that recovery is not an objective of the IBC. The term “recovery” is not mentioned