IndiaCorpLaw: Why the RBI and IBBI need to work together to effectively handle the resolution of stressed assets

The introduction of the Insolvency and Bankruptcy Code, 2016 (“IBC”) has led to a paradigm shift in the debt recovery mechanism in India. The IBC was a much-needed legislation given the plethora of central and state laws that governed different aspects of the process. The IBC repealed most of the earlier laws which dealt with the subject. It also has a non-obstante clause to handle conflicts with other laws and stipulates a moratorium on any other proceedings once proceedings under the IBC have commenced. The supremacy of the IBC has been upheld by the Supreme Court of India.

The question that naturally arises in these cases is what principles guide the IP, especially in the absence of such mechanisms in the Regulations and the IBC itself.