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Some recent cases have raised doubts about the efficacy of the Insolvency and Bankruptcy Code (IBC). The resolution process of the Videocon group, for instance, is being talked about because the winning bid was close to the liquidation value, and banks were expected to take a haircut of over 95 per cent. Some lenders have objected to the plan and it has been stayed by the National Company Law Appellate Tribunal. The overall recovery rate under the IBC process has arguably been subdued and the headline data suggests that a large number of cases since its inception in 2016 have resulted in liquidation. However, it is important to evaluate IBC’s performance in the proper context.
It is undoubtedly one of the