Archive · 29 May 2025
Parliamentary Panel Flags Concerns with Bankruptcy Code
A group of people in the government who make and change laws (a parliamentary committee) found some confusing parts in the law about companies that can't pay their debts (Insolvency and Bankruptcy Code, or IBC).
They're thinking about changing the law to fix these problems.
The Supreme Court, the highest court in the country, also made a decision about a company called Bhushan Power and Steel.
Some members of the committee are concerned about how long it takes to fix the problems, as there are delays.
They believe this law has been helping companies and creditors since it was made in 2016.
Parliamentary panel flags ambiguities in the Insolvency and Bankruptcy Code (IBC).
The government is reportedly considering amendments to address concerns.
A recent Supreme Court judgment regarding JSW Steel's resolution plan for Bhushan Power and Steel Ltd (BPSL) was discussed.
Committee members noted delays in the resolution process.
The IBC was enacted in 2016 and has proven helpful in several cases, according to sources.
- Who
- A parliamentary committee, corporate affairs secretary, and representatives of banks.
- What
- A parliamentary committee discussed the Insolvency and Bankruptcy Code (IBC) and potential amendments.
- When
- The deliberations took place on Thursday; the IBC was enacted in 2016.
- Where
- New Delhi, at a meeting of the Standing Committee on Finance.
- Why
- To address existing concerns and ambiguities.
Concerns with the IBC
Benefits of the IBC
Delays in Resolution Process
Concerns with the IBC
The previous panel, headed by Jayant Sinha, had also highlighted certain gaps and recommended some changes.
Benefits of the IBC
Sources noted delays
- Committee
- Parliamentary Standing Committee on Finance
- Main Topic
- Insolvency and Bankruptcy Code (IBC)
- Government's Action
- Considering amendments
- Enactment Year of IBC
- 2016
- Supreme Court Case
- JSW Steel's resolution plan for Bhushan Power and Steel Ltd (BPSL)