The month of April can be marked for two very important developments. The first development came into the fray in the form of an announcement made by SEBI when it issued the guidelines for pending cases of insolvency and told the regulators to appoint competent Insolvency professional (Insolvency professionals to administer refunds to investors, 2019). The newly appointed one will handle the cases of Sahara and PACL.
Banks & Financial Institutions are expected to realise more than Rs. 80,000 crore as compared to Rs 66,000 crore in the previous fiscal under Insolvency bankruptcy code (IBC). Recently, corporate insolvency resolution process(CIRP) of two large accounts – Essar Steel Limited and Bhushan Steel and Power Limited are expected to be realized with higher value.
The complex and unpleasant insolvency situation always demanded a stringent set of laws to keep it in check, and thus, Insolvency and Bankruptcy Code (IBC) was promulgated around three years ago. IBC aimed at creating a single law for insolvency and bankruptcy. Since its enactment, several individuals have sought bankruptcy and insolvency service from professionals to overcome the unpleasant scenario.
