When a little-known company Shiv Sneha Associates advertised that it would file bankruptcy proceedings against the NYSE-listed MakeMyTrip, valued at $3 billion, to recover its dues, it showed how a new law can become a tool to intimidate businesses.
A number of frivolous petitions at the National Company Law Tribunal (NCLT), which administers the Insolvency and Bankruptcy Code (IBC), is a cause for anxiety among bankers and promoters over whether the tool, supposed to be a lubricant for the economy, is becoming an obstacle.
As judicial officers at NCLTs and insolvency professionals (IPs) grapple to understand the code, where resolution has to be timebound, industrialists and bankers, who knew the judiciary as a stalling mechanism, ar…
Read the full article at: http://economictimes.indiatimes.com/industry/banking/finance/banking/how-the-bankruptcy-code-can-be-abused-by-unscrupulous-elements/articleshow/59870030.cms