Justice Ashok Bhushan, Chairperson of National Company Law Appellate Tribunal (NCLAT), on Monday termed the Insolvency and Bankruptcy Board of India (IBBI) as a pro-active regulator, which constantly learnt through interactions with stakeholders and took steps to encourage research in insolvency law to help make better and informed policy decisions.
Presiding over the Seventh Annual Day celebrations of IBBI as the Chief Guest, Justice Bhushan, while terming the Insolvency and Bankruptcy Code, 2016 as a game changer legislation, said the speed with which the IBBI has geared up the entire ecosystem was astounding.
Talking about the transformative journey of India’s corporate insolvency landscape after the advent of IBBI, Justice Bhushan said the legislation rolled out a meticulous regulatory regime, which gelled well with the larger economic narrative of the nation.
He emphasised the need for continuous innovation in the ecosystem by all stakeholders and for capacity building through proactive advocacy, while highlighting the application of technology in the processes for timely admission and resolution.
The Annual Day lecture was delivered by Chief Justice (Retd) Ramalingam Sudhakar, who applauded the IBBI for noteworthy achievements of IBC in a short span of seven years.
Appreciating the efforts made by the Government and IBBI in conducting the review exercise of the provisions of IBC resulting in the organisation of a Colloquium on theme ‘Functioning and Strengthening of the IBC Ecosystem’ from November 19 to 20, 2022 in New Delhi. Chief Justice (Retd) Sudhakar highlighted that the recommendations emerging from the Colloquium were under active consideration of the Government.
He also highlighted his interactions during his recent Tokyo visit, wherein, the report of IIM Ahmedabad (IIMA), which was a study to understand the effectiveness of resolution process on the firms by analysis performance of the firms both before and after the resolution process and to understand if the firms have been able to find their feet in the market, was discussed and appreciated by the professionals.
He impressed upon the use of AI in proceedings so as to achieve better and speedy outcomes.
Speaking on the occasion, Dr. Manoj Govil, Secretary, Ministry of Corporate Affairs (MCA), acknowledged that the highest number of resolutions since the enactment of IBC were witnessed in the year 2022-23 with 186 corporate debtors (CDs) being resolved. He noted that the establishment of the IBBI has brought expertise and efficiency to insolvency proceedings.
He congratulated IBBI for seven years of successfully countering challenges through proactive and dynamic regulatory measures in the insolvency space. He appreciated IBBI for being at the forefront for engaging effectively with stakeholders on regulatory changes and maintaining transparency in decision making and ensuring information dissemination.
Ravi Mital, Chairperson, IBBI, while delivering the welcome address, noted the achievements during the journey of the last seven years of IBC. He highlighted that there has been a recovery of three lakh crore through IBC which enables creditors to lend multiple times more in the market.
He further highlighted the analysis in the IIM Ahmedabad Report that IBC market capitalisation of the companies resolved under IBC have increased from two lakh crore to six lakh crore. He encouraged IPs to speed up the process to enable the Adjudicating Authority to pass orders for prompt disposal of applications filed for the Corporate Debtors. He thanked all the stakeholders for their contribution in the impressive journey of the IBC over the last seven years.
As part of the Annual Day celebrations, IBBI released an annual publication, “IBC: Evolution, Learnings and Innovation”. This publication offers a multifaceted perspective on the origin of the IBC, judicial interpretations, practical implementation, institutions under the IBC, technological improvements, learnings from real word case studies and potential next generation reforms. It is a collection of 31 thought-provoking articles.
A research publication, “Navdrishti: Emerging Ideas on IBC” was also released. This publication is a compact collection of research papers from leading academicians and practitioners in the field of insolvency and bankruptcy, presented at the 2nd International Research Conference on Insolvency and Bankruptcy held in association with IIM Bangalore (IIMB) at their campus from 23rd to 25th February, 2023.
The 7th Annual Day of IBBI was an occasion to reflect on the achievements and contributions made in the field of insolvency and bankruptcy over the years. The event brought together large number of esteemed dignitaries and stakeholders of the insolvency regime, namely, officers of the Government and regulatory bodies, insolvency professional agencies and registered valuer’s organisations, insolvency professionals, registered values, other professionals, debtors, creditors, business leaders and academicians. The event was also live telecast online.
Sudhaker Shukla, Whole Time Member, IBBI proposed a hearty vote of thanks at the conclusion of the event. Jayanti Prasad, Whole Time Member, IBBI, was also present on the occasion.