The jury is still out on Section 74 of the Insolvency and Bankruptcy Code (IBC), which details provisions for punishment of company officials who breach the moratorium or terms of the resolution plan approved by the committee of creditors as well as the adjudicating authority. While some experts say that invoking the Section is necessary to retain the seriousness of the corporate insolvency resolution process, others believe such stringent measures could deter bidders.
The code could evolve to a place where such erring bidders would be barred from participating as bidders in resolution plans for other companies undergoing insolvency, Sumant Batra, an insolvency expert said.
“Secti…
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