India: Insolvency/Bankruptcy/Re-Structuring

The Insolvency and Bankruptcy Code, 2016, stands as a paradigm of legislative intent favouring expedition, finality, and discipline in the resolution of corporate insolvency.

The Supreme Court has delivered a landmark judgment reinforcing the binding nature of resolution plans approved by the Committee of Creditors under the Insolvency and Bankruptcy Code. This decision addresses whether successful resolution applicants can use procedural technicalities to escape their obligations after securing CoC approval, building upon the precedent established in Ebix Singapore.

In 2016, Parliament enacted an ambitious statute, the Insolvency and Bankruptcy Code, 2016 ("IBC"), with the stated objective of achieving time-bound resolution of corporate insolvency within 180 days with one-time extension of up to 90 days i.e. 270 days.