IBC - Philosophy, Process & Ecosystem: A Review

Abstract

Insolvency Bankruptcy Code, 2016 is a major breakthrough in social engineering and behavioural law. The Code has philosophy of balancing the interest ofstakeholders and with maximisation of value of assets. The Code envisages that appropriate legal framework would trigger socioeconomic and sociocultural objectives. The mandate of BLRC Report has visualised the entire process, ecosystem and its impact and accordingly Code was enacted. The shift from debtors driven to creditors driven mechanism and ease of exit is another challenge of the Code well taken in the process and ecosystem. The four pillars within the IBC and ecosystem outside the IBC in the Banking and financial sector and other agencies have facilitated the implementation of the Code in letter and spirit. The Adjudicating Authorities are in forefront in this performance. The Insolvency Profession has brought about sea change in the determining the measures and expediting the measures for resolutions or liquidation under the market mechanism. This in turn promotes entrepreneurship development. The IPs are playing substantial role under IBBI and with the professional support of Information Utilities. The timely executive, legislative and quasi-judicial function of IBBI is well applauded for its unparallel success. The process with in the Code and Ecosystem have given all the necessary support and acceleration for the accomplishment of substratum of the Code.