Richa Roy and Zubin Mehta
On the second anniversary of the Insolvency and Bankruptcy Code (Code) many of its achievements deserve celebration including fostering credit discipline and improving upon a culture of impunity.
And yet, there has been a gamut of reactionary amendments to the Code, the intent and timing of several of which raise questions. The most significant of these was the introduction of the ineligibility criteria test through Section 29A. The ostensible objective was to preclude unscrupulous, back-door promoters from regaining access to their companies.
There was no such restriction in the Code as originally drafted. Was this oversight? Among the central lacunae in Indian bankruptcy frameworks prior to the…
Read the full article at: https://www.moneycontrol.com/news/business/economy/opinion-self-goal-of-29a-harming-the-promise-of-insolvency-and-bankruptcy-code-3314351.html