Insolvency and Bankruptcy Board of India (IBBI) Chairman MS Sahoo has said that the Insolvency and Bankruptcy Code (IBC) will evolve gradually to its full potential and one of its main objective is to maximize the value of assets of corporate borrowers.
He was addressing a seminar on IBC organized by PHD Chamber of Commerce and Industry in New Delhi on day.
The IBBI chief also said that the capability of Committee of Creditors is absolutely critical for success of IBC, though the role of insolvency professionals is also important.
IBBI was set up last year to regulate the functioning of insolvency professionals and other related entities under the Insolvency and Bankruptcy Code, 2016.
The Code, notified by the government in May last year, has consolidated and amended laws relating to reorganization as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
Under this new law, employees, creditors and shareholders have been given powers to initiate winding up process at the first sign of financial stress such as serious default in repayment of bank loans.
Mr. Sahoo described laws relating to IBC as the most progressive among all laws effected and enacted post economic liberalization.