The government has done well to approve changes in the Insolvency and Bankruptcy code to give financial creditors preference over unsecured creditors to receive their money back when the assets of the company are sold and recoveries made. It is fully up to the Parliament to make changes in the law, and the Court’s rulings will have be based on the law of the land.The Supreme Court has already held that the bankruptcy law is ultra-virus of the Constitution. The change will also put the Committee of Creditors back on the driver’s seat. That is welcome.Other changes include the limiting the resolution process to 330 days, including the time limit for litigation. Course corrections in the law make eminent sense to speed up the progress in resolving the bad loan problem.

Source: Economic Times July 18, 2019 07:51 UTC