The Insolvency and Bankruptcy Code, 2016 is one of the most dynamically evolving legislation in India. This intends to bridge the gap owing to the previous legislations and bring about a more effective mechanism for debt resolution.
The Code provides a creditor-in-control framework for debt resolution under the control of a resolution professional also provides fundamental changes from the previously existing legislative regimes.
Some of the core aspects include:
(i) home buyers to be considered as financial creditors;
(ii) waterfall arrangement which gives preference to dues of workman and secured creditors over government dues;
(iii) well-defined timelines.
While the primary focus of the Code is on insolvency resolution, the Code also provides specific procedure that is to be adopted for liquidation. Although a landmark legislation for India, the Code is a developing law and poses certain unique challenges. Some of these challenges have been addressed through Courts of law, but the jurisprudence is yet silent on numerous issues.
Lakshmikumaran & Sridharan is organizing this conference call to highlight few of such challenges and issues, and will provide an overview as to how pertinent such issues may be for creditors, debtors, resolution applicants, resolution professional and other players, and what aspects need to be kept in mind while approaching the resolution mechanism under the Code.