33 Takeaways — Unmissable Insights from Sumant Batra’s New Book on Corporate Insolvency

The book release of “Corporate Insolvency: The Road to Viksit Bharat — Law, Policy and Practice”, authored by leading insolvency lawyer and author Sumant Batra and published by EBC (Eastern Book Company) took place recently in the second week of July in New Delhi. The event featured distinguished dignitaries: Chief Guest: Justice A. K. Sikri, Former Judge, Supreme Court of India; International Judge, Singapore International Commercial Court and Guests of Honour: Justice Ashok Bhushan, Former Judge, Supreme Court of India & Chairperson, NCLAT, Mr. Amitabh Kant, Former G20 Sherpa & CEO, NITI Aayog; Senior Advisor, Fairfax and Mr. Sanjeev Sanyal, Member, Economic Advisory Council to the Prime Minister of India.

The excerpt below is a synopsis of Chapter 36 —33 Headnotes; from the latest edition of his book. A copy of the book can be purchased here.

****

This chapter provides a summary of 33 headlines or aspirations, out of the many takeaways of this book, which appear at different places of the book, in distinct shapes and sizes, big or small—as a paragraph or two, a page or double of that, or as a standalone chapter. Some recommendations are concrete suggestions, other ideas that need a grind, in-depth research or greater deliberation, more than what the book offers. Some of these have been left for amplification in the future editions of this book.

Why 33? In Hindu traditions, numbers do more than just add up. They carry special meanings and can shape our destiny and personality. This belief comes from the ancient Vedic tradition, where numbers are seen as important vibrations linked to the energy of the planets and stars. Each number has its own power that can affect different parts of our life. 33 is the number of Lord Kubera,¹ the Hindu God of wealth and treasure, whose blessings we need to become a developed economy by 2047.

1. Ancient wisdom for modern lives

Ancient text is full of wisdom on the approach to debt and default, bankruptcy and its treatment, and related aspects, many of which are considered today as principles of modern insolvency law. Some of these existed in our way of doing business, and life, centuries ago. It is worth seeking guidance from the wisdom and maturity of economic ideas (including those that are identified or termed as insolvency or bankruptcy today) that found expression in ancient Indian writings. Besides devoting a full chapter to evoke this approach, contextual references are made at relevant places in many other places in the book.

2. Look global, think local

The role of culture in influencing the efficacy of bankruptcy and insolvency systems is crucial and cannot be ignored. In implementation of insolvency policies, it is necessary to stay mindful of this dynamic. While we should continue to benefit from experiences and learnings of advanced economies, we should not lose sight of our local dynamics. Insolvency is a subject important not just for the economy, but our culture, society and most importantly the people that constitute our nation. It must occupy a significant place in the nation’s mind space. Our ancient wisdom, deep rooted values, and cultural beliefs should be reconciled as far as possible in insolvency policy making. The philosophy that should guide insolvency policy making is — Look Global, Think Local. This is discussed at some length in Chapter 27.

3. American dream, to indian wings

With around 40 per cent of India’s 1.4 billion citizens under 25 years old and with millions of India’s youths entering the job market every year, for the country to benefit from the demographic dividend, it needs to generate productive employment for 7—8 million youth who will join the labour force every year. India cannot afford to lose this demographic advantage if Bharat is to become a developed nation by 2047. How does one create job creators? This is where the need to form an equivalent, if not a better version, of the “American Dream” arises. A modern personal insolvency policy which resonates with the youth, added to the many other measures being taken by the government, such as the “start-up” should encourage the youth to take risks, eliminate the fear of failure and empower them to create wealth for themselves and the country. This is the single echoing clarion call needed to wake up the youth to lead Bharat to the path of becoming a developed nation by 2047. This policy has the potential to give wings to their dreams and Bharat might as well become a nation which gives wings to dreams.

4. Global thought leadership

For India, being a Vishwaguru means taking “global thought leadership” in areas where it has a proven track record, whether during ancient times, over centuries of subjugation, or in contemporary times. India’s Vishwaguru-ship is a claim, not an assertion, based on civilisational philosophy it represents, which is grained in her present thinking and future vision, a break away from global imperialistic hegemonic forces, which have not undeniably subscribed to the predominant global design. India also relies on the learnings from its struggles over centuries against colonial forces, and the power of resilience which made her rise from the ashes like the phoenix.

The Indian insolvency regime is just over eight years old. It is still to deepen its roots. Yet, the development of a sophisticated insolvency system in a short period of time shows that we are far more than capable of implementing complex economic laws with great maturity. There is no reason why India should not press the accelerator on upgrading the insolvency eco-system and seek to become the most attractive jurisdiction for restructuring. India need not wait to become a developed country to stake claim for this space. It should aspire to become a global capital for restructuring, sooner.

5. Beyond IBC

While we think big of IBC, we must also think beyond IBC. IBC is just one limb of a country’s insolvency system as it applies only to corporate persons and individuals. Indian policy maker’s mantra should be not so much the Audacity of Hope, the title of Barack Obama’s 2006 book, but closer to an adaption of its sub-title, Reclaiming the Indian Dream. Since 2014, a new audacity of vision has allowed Indians to dream big after a long, long time. We must expand our vision on insolvency beyond corporate persons to other market players like municipal bodies and trusts, and walk the path no other has, leading the world in unexplored areas (such as climate change and insolvency, and space insolvency) and aspects of insolvency, many of which are discussed in this book.

6. Climate change and insolvency

Chapter 31 advocates that India can use IBC to effectively address many risks arising for businesses from climate change, which could go a long way in mitigating the effects of climate change on Indian businesses. Many measures can be taken without having to make any fundamental shifts in existing policy framework or disrupting the process of stabilisation of IBC; some policy changes will require recalibration of the policy underlying IBC, a law still at its nascent stage. Some measures can be promoted as best practices. The country’s goal to become a developed country, and to address climate change risks to businesses complement one another. Suffice it to say that recognition of “climate insolvency” can contribute to the green agenda by facilitating the liquidation or restructuring of carbon-intensive firms and stranded assets by putting an end to a polluting activity of a firm or its stranded assets, or alternatively, facilitating its transition (through restructuring) towards a more climate-friendly business model. It can address climate change risks in an orderly and efficient way. They can help enterprises recover from financial distress caused by climate hazards by alleviating the debt burden through debt discharge provisions, and facilitating their restructuring and in turn, their continuance. These measures can build resilience to climate change through better access to credit.

7. Financial empowerment of municipal bodies and a restructuring framework

There are several impediments to accessing finance from markets by the Indian municipalities. One of the primary hurdles is the absence of an effective regime for resolution of distress in the event a municipality faces financial hardship. Predictable rules of distribution to creditors in the event of a debtor’s insolvency give lenders and investors confidence and allow them to assess their risks. It also influences the lender’s decision on the cost at which they may make the capital available. An effective framework for municipal debt restructuring can provide municipalities access to cost-effective capital and turn them into engines of economic growth. Such a framework can create a sound climate for investment, and enable their market participation, more accurately price, manage and control default risks and failure. The legal structure of municipalities in India is complex. The operative environment for municipalities is delineated by a comprehensive legal and economic framework. Compared to more traditional personal or corporate cases, the distress of municipalities in India raises unique challenges. Having a legal form and structure different from companies, the municipalities need a unique dispensation for stress resolution. This issue holds a strategic importance in India’s 2047 ambition. The book proposes a restructuring framework for municipalities with focus on those that have issued bonds on stock exchanges.² This is discussed at some length in Chapter 32.

8. Behavioural change

Behavioural change has become a core issue of public policy. A relatively new area of behavioural economics is the “nudge theory”. One of the far-reaching spill-over effects of IBC is stated to be the behavioural change effectuated by it. IBC, being preventive in nature, is also being touted as having brought about a cultural shift in the dynamics between lenders and borrowers, and promoters and creditors. Claims have been made that the “fear of losing control” over the corporate debtor (CD) upon initiation of the corporate insolvency resolution processes (CIRPs) has nudged thousands of debtors to settle their dues even before the initiation of insolvency proceedings. It is stated in many studies and reports that the bar imposed on promoters to submit a resolution plan by insertion of Section 29-A in IBC in 2017 has worked as a potent threat on promoters. This change in attitude of promoters is attributed to the nudge effect of IBC.

Perpetual continuance of Section 29-A in IBC may not serve the desired purpose. Section 29-A has served its purpose and utility in seven years it has been in place. From here, it might only become a stumbling block in creating a competitive market for stressed assets. For detailed discussion on this aspect, please see, Chapter 35.

9. Digital India and insolvency

The adoption of digital technologies by governments enables more efficient, user-friendly provision of public services and promotes greater transparency and accountability. The adoption of digital technologies by businesses fosters productivity, innovation, and the creation of highly skilled jobs.

Artificial Intelligence (AI) can play a crucial role in enhancing various aspects of insolvency processes. It can analyse large volumes of financial data to spot trends and patterns, helping predict potential insolvency risks. AI algorithms also enable early detection of financial distress by continuously monitoring key financial indicators, giving stakeholders the ability to take proactive measures. AI can improve fraud detection by spotting suspicious activities in financial transactions. Automation tools like Robotic Process Automation handle repetitive tasks, allowing professionals to focus on more complex aspects. AI-powered systems can efficiently manage documents and legal records, speeding up review and analysis. By providing data-driven insights, AI can support better decision-making, while AI chatbots help streamline communication with stakeholders. Moreover, AI can enhance credit risk assessments and helps insolvency professionals (IPs) create more tailored solutions based on specific cases. Its ability to analyse market trends further aids professionals in understanding the economic landscape and planning for recovery. Lastly, AI-driven collaboration tools improve communication and coordination between all involved parties, driving efficiency and cost reductions. India needs to invest substantially in AI. Please see Chapter 34 for discussion on this subject.

10. Mediation as game changer

After successful implementation of IBC, it is time to demonstrate India’s prowess in insolvency mediation applying the country’s rich ancient experience and legacy in resolution of disputes by mediation. The debtor’s assets should not be wasted on litigation and other costs, they are rather used for the benefit of the economy. The effectiveness of IBC assumes great significance in achieving the goal of becoming a Viksit Bharat by 2024. If the issues of delays under IBC are effectively addressed, the outcomes under IBC can improve significantly and support the economic aspirations of the policymakers and the citizens in India to become a developed country.

11. Reimagining NCLT

NCLT’s performance has been a matter of discussion lately. In Jet Airways³, judgment delivered on 7 November 2024, the Supreme Court has made certain suggestions to Parliament to improve efficiency of IBC, and the functioning of NCLT and NCLAT. As the government takes up for consideration the suggestions, I have added a few of my own. The chief of them is the need to reimagine NCLT. When IBC was enacted in 2016 and NCLT operationalised, it was a different India, energetic, aspirational and taking steady strides into a free market economy. NCLT, envisioned to solve the problem of 1999, was not designed as a 21st century institution for one of the fastest growing economies; for a country aspiring to become a developed nation by 2047. Our institutions should represent the India of today. The suggestions and their context are discussed at some length in Chapter 8.

12. IBBI of future

There is a growing sentiment in the market that IBBI’s mounting regulations are becoming burdensome, costly and time consuming in compliance. It dissuades the able and competent professionals, who want to spend their time on more productive work, to join or continue as IP. I know personally three great professionals who have stepped back despite success stories they have to tell. IBBI should also do a cost-benefit analysis of its disciplinary approach. Many of its disciplinary actions and punishments are seen by the market as being disproportionate to the irregularities alleged. NCLT Benches have joined this chorus.

13. Insolvency profession must rebuild trust

In the field of insolvency there are two actors whose integrity and experience are central to the functioning of the insolvency system: judges and IPs. Despite the differences of legal systems, insolvency office-holders, variously called trustees, administrators, receivers, liquidators, insolvency representatives, IPs (in India) are at the heart of insolvency systems operating around the world.

14. Role of lawyers

NCLT Benches are swamped with applications many of which are found to be frivolous. While it is the right of a citizen to NCLT to seek correction of any wrong committed, it is the lawyer’s duty to advise a client if a case is made out in law, and if the application needs to be filed or not. The duty is higher in economic law cases where corresponding rights of other parties may be adversely affected by filing of a frivolous application due to delay it may cause in decision of that case or other cases, and by clogging of NCLT Benches with application. It is also a duty of lawyers to argue propositions of law that are aligned with and advance the objectives of IBC.

15. Women in insolvency

Women are underrepresented in firm ownership and senior management roles, globally. While diversity in the insolvency and restructuring profession has improved since many of the women began their careers, there is still a lack of women insolvency practitioners actively taking appointments. Only 10 per cent of the country’s registered IPs are women. There are different skill sets that women bring to the profession. More and more women should be encouraged to pursue licences and gain representation in the field. While being a woman hasn’t necessarily held them back, there are unique challenges, such as balancing career and caregiving responsibilities, that have affected them all. A supporting eco-system is needed where women can balance their other responsibilities with that of profession, with support from men.

16. The art of the Ad hoc

Unofficial, or ad hoc, committees have become leading actors in global restructurings. These committees, often composed of aggressive and activist stakeholders, now populate and occasionally dominate restructuring negotiations. Ad hoc committees collect, organise and harmonise the views of members of a class of par or distressed investors and transform those views into actionable restructuring aims and binding agreements. This can happen before a filing to achieve a pre-negotiated consensus or to exert litigation leverage, or after a filing as means to advocate for and against debatable reorganisation propositions. The collective objective is a sustainable transaction, or a series of transactions, to optimise value for members of the class represented by the committee, which from the company’s perspective will also promote a restructuring that benefits all interested parties. Ad hoc committees are examples of freedom of assembly. Parties join or exit at will, working with shared professionals, often with access to confidential information. It will be useful to introduce the concept of ad hoc committees in IBC.

17. Hybrid insolvency process

There is definitely merit in tweaking the pre-pack framework provided in IBC. The government has two choices. It can revisit PPIRP, simplify it, and extend it to all corporate debtors. Simplification will, however, require re-writing the entire PPIRP model. Or, it can combine the features of IBBI expert report on Committee on Credit Led Resolution Framework, and ILA Thought Paper, and produce an effective hybrid insolvency procedure, another avatar of pre-pack tailored to Indian conditions.

The latter might be a more useful option, as elaborately discussed in Chapter 30.

18. Cross-border insolvency

Over the last couple of decades, academics have vigorously debated which approach to cross-border insolvency is best. The debate usually centres on questions of predictability, certainty, national sovereignty, fairness and efficiency. In this academic discourse over the most appropriate design for an international insolvency system, two theoretical approaches have traditionally been identified; these are universalism and territorialism. Universalism means that one jurisdiction should administer the insolvency proceedings and the debtor’s assets should be dealt with on a worldwide basis. Since universalism requires a single law to be applied, it goes hand in hand with harmonisation of insolvency law, both procedural and substantive. Territorialism on the other hand means that any State in which the debtor’s assets are located has jurisdiction to open insolvency proceedings, applying its domestic insolvency law to distribute the assets for the benefit of local creditors. Please see discussion in Chapter 15 for more details.

19. Business Ready (B-Ready)

B-Ready is organised according to topics essential for private sector development that correspond to various stages of the life cycle of a firm and its participation in the market while opening, operating (or expanding), and closing (or reorganising) a business. The 10 topics are business entry, business location, utility services, labor, financial services, international trade, taxation, dispute resolution, market competition, and business insolvency. B-Ready 2025 will entail several updates to enhance data collection processes and improve the quality of the data. The updates to expert questionnaires will reflect refinements to the methodology of the topics, which will be included in the B-READY Methodology Handbook.⁴ It will make economy profiles and other informational materials available on the website for everyone to consult. And it will provide opportunities for knowledge sharing through meetings, conferences, and public presentations. India needs to aim for a higher standing in all areas.

20. Insolvency Law Academy

ILA had been established as a public foundation, with Justice A.K. Sikri, former Supreme Court Judge as chair of its global advisory, and many stalwarts including Krishnamurthy Subramanian, former Chief Economic Advisor, in the Ministry of Finance (presently India’s Executive Director in IMF), and Dr M.S. Sahoo, first chairman of IBBI, as its members. Fast forward to 2024, his acceptance speech on induction as Emeritus Fellow of ILA on 3 February 2024, Dr Debroy disclosed in the presence of many luminaries that he was very sceptical when I offered to set up ILA without any government support. He wondered, how could such an ambitious and aspirational institution take off without support from the government? He did not expect much to come out of ILA at that time, he said. Then, he added, sounding visibly pleased, that the progress made, the body of work created, and footprints created by ILA in the first very six months had pleasantly surprised him. He went on to say ILA’s accomplishments had far surpassed his expectations. While ILA has come a long way, and has created impressionable global footprints. Please see Chapter 12 for more details.

21. Related laws

It is found that despite IBC having an overriding effect on the other laws, the custodians of other laws do not acknowledge or accept the supremacy of laws. As a result, the terms of resolution plan approved by NCLT, even though binding on all, continue to be disregarded by these authorities. Despite their claims having been extinguished, the statutory authorities seek to extract past dues (pre-CIRP) from resolution applicants whose plan is approved. In the last eight years of implementation of IBC, law has experienced friction with certain provisions of the Prevention of Money Laundering Act, 2002. The tension has resulted in large productive assets getting locked in dispute, resulting in their inability to contribute to GDP, hence, impacting economic growth. It is necessary that the government and courts take a serious view of obstructions caused by authorities under different laws.

22. Sectoral approach to insolvency law

Most legal systems adopt different solutions to deal with similar problems and these solutions are only similar in relation to the specific function they perform within the society. Thus, societies with similar societal problems can draw upon other societies’ solutions to come up with a functional equivalent to tackle their problems. There can certainly be a uniform approach to the design of insolvency laws, as features such as a system for creditors to present and prove their claims will be needed. However, uniformity doesn’t mean that laws have to be the same for all types of debtors. There could be a singular objective of law at a macro level but the micro approach to law depends upon the intricacies that business situations impose. We don’t need separate laws, only separate processes, built on established insolvency principles. Experience of real estate companies, airlines, asset light companies show there is merit in providing separate processes and approaches for select sectors. Insolvency Law Academy has taken up this subject as one of the key topics for research.

23. Space sector

The Indian space sector has emerged as a beacon of technological advancements and innovation, bolstering the country as one of the top nations in the global space economy. Despite being one among a few spacefaring nations in the world, India accounts for only about 2 per cent of the space economy. Within the past decade, the Indian Space Research Organisation has achieved momentous milestones since its grounded beginning in 1969. 23 August 2023 was a historic day for the Indian space arena, with India becoming one of the only four countries to successfully land a spacecraft on the lunar surface. With Chandrayaan-3 landing making a successful touchdown on the moon’s surface, India also became the only country to land on the unchartered south pole of the moon.

24. Culture of research

Academic knowledge, evidence and expertise can help inform, design, improve and test policy and ultimately make government policy better. Deep research can bring together evidence to support policy makers in achieving real-world outcomes. This includes the development and use of a sound evidence base such as peer-reviewed literature, or even better, systematic reviews. Scholars and Think Tanks are uniquely placed to broker links between different sectors and assist with cross cutting approaches to achieving the sustainable development goals of the insolvency industry and finding innovative solutions. Research based analysis bridges the gap between policy and practice, and can lead to strong, inclusive and thorough implementation of the insolvency regime. This creates a need for building a specialist cadre of scholars of insolvency in the country. Please see Chapter 26 for discussion on research and innovation in insolvency.

25. Bank insolvency

There is a strong case in favour of including the framework for insolvency of financial institutions as a separate chapter in IBC with a process of its own. The IBC is the umbrella legislation for insolvency resolution of all entities in India — both corporate and individual. One of the objectives behind the enactment of IBC was to consolidate the fragmented insolvency framework by creating a single law (in the form of a Code) for insolvency and bankruptcy. The aim of codifying insolvency law is to provide for greater coherence in law and facilitate the application of consistent and lucid provisions to different stakeholders affected by business failure or the inability to pay debt. Please see Chapter 22 for discussion on this subject.

26. Secondary market for distressed assets

The Indian distressed asset investment landscape has come of age. IBC changed the game. There has been a remarkable change in the resolution process for non-performing loans (NPLs) on the balance sheet of banks. It has given stressed asset resolutions a legal structure, well-defined processes, responsibilities and timelines. The lack of creditor-friendly laws allowed promoters to exploit the system, and banks continued “evergreening” loans amid lax oversight. As discussed in Chapter 6, NPAs have come down. However, statistics indicate that despite sinking NPA levels, there is a corresponding increase in loan write-offs by banks, which posits the requirement for efficient alternatives to deal with distressed debt. While the scale of the credit market in India is growing, the secondary market has not risen in consonance with the market size and remains small compared to other Asian markets such as Malaysia, South Korea and China.

Read the detailed discussion in Chapter 6.

27. Director’s duties in twilight period

There is a significant shift in directors’ duties when a company is faced with the risk of insolvency. Directors need to be aware of these duties and the related issues before the company becomes insolvent, as their responsibilities are very different from and more extensive than those that apply to solvent companies. Many of them apply when a company is in financial trouble but before it is insolvent in the technical sense. The decisions taken in this period by the directors and officers of the enterprise could significantly influence or impact the outcome of the insolvency process when the debtor or the creditors formally commence it. It might be useful for policy makers to address this problem by making suitable amendments in the Companies Act, 2013, and incorporating additional duties during the twilight period. This subject is discussed at some length in Chapter 14.

28. Last mile funding

A key responsibility of resolution professionals is to protect and maintain the viability of the business of the corporate debtor by continuing its operations and paying its debts as they become due in the ordinary course of its business. Interim finance can be raised by resolution professionals where the corporate debtor does not have adequate revenue to meet the costs. Repayment of interim finance is treated as cost of process and has super-priority status under IBC. However, few lenders are ready to lend to a distressed company. Even if an external lender is willing to offer interim funding, the high interest cost element is pushing back the existing lenders to take a decision on infusion of new funds to the distressed debtor. This has been an impediment in maximising the value of assets of the debtor. There is a pressing need to address this issue. This subject is discussed at some length in Chapter 16.

29. Litigation funding

One of the most significant barriers to the pursuit of avoidance actions globally has been the lack of funding avenues to pursue these claims. In India as well, a company admitted into CIRP is likely to be facing a liquidity crisis. Any funds available in its internal corpus and any interim finance raised from members of committee of creditors or other third parties will first be applied towards meeting the costs of the CIRP and maintaining the corporate debtor as a going concern. Liquidity concerns apart, creditors may also be wary of disbursing funds to pursue avoidance actions due to the uncertainty in adjudication timelines and quantum of recoveries, risk of excessive litigation and potential enforcement issues, once a successful decision is obtained. These difficulties translate to increased litigation costs for creditors. In some circumstances, the cost of litigation may make the creditors worse off than if they had not pursued the avoidance application at all. This is because the costs incurred in pursuing avoidance applications, including for conduct of forensic audits, collation of evidence and the lawyers’ legal fees will usually be paid from the corpus of interim finance raised by resolution professionals. Payments towards interim finance are however regarded as “insolvency resolution process costs” and are paid in full, in priority to distribution to any other creditors in the insolvency process. If the costs incurred in pursuing avoidance applications exceed the value of assets recovered, creditors will suffer a net loss. The current regime, thus, leaves cash-strapped creditors with good reason to pour limited financial resources to pursue avoidance actions. This issue requires pressing policy attention.

30. From pessimism to promise

The global economy is yet to recover from the 2020 pandemic. Multiple major conflicts are unfolding worldwide, fuelled by long-standing historical, political, and social tensions that continue to push back recovery. The world is gripped by fire and fury, as conflicts erupt across continents, leaving devastation in their wake. In several emerging and developing economies, coups and constitutional crises have sparked widespread protests. Any rise in social unrest could pose a risk to the global economy’s recovery, as it can have a lasting impact on economic performance. These double crises — pandemic and war are further complicated by another growing risk: fragmentation of the world economy into geopolitical blocs — with different trade and technology standards, payment systems, and reserve currencies. This is a massive setback for the global recovery.

31. GRR Award

The country rose from the ashes like a phoenix and shaped its destiny after “Freedom at Midnight.” Fast forward seven decades from Independence, the country has been transformed beyond belief. We are witnessing a country chart its course to power. India is set to reclaim its glorious space in history. Today, India is on the Moon … . We reached the spot where no one had ever reached before. We did what no one had ever done before. India’s unique worldview emanating from our civilisational culture, our remarkable achievements during the last 75 years, and our intrinsic strengths can offer the guidance and leadership to the global community that it so very critically requires, and lead the world from pessimism to promise like expected of a true “Vishwaguru” to the world.

In 2018, India won the Global Restructuring Review (GRR) Award⁵ for the “Most Improved Jurisdiction” in a glittering ceremony held in Banking Hall, London on 26 June 2018. This award recognises the jurisdiction which improved its restructuring and insolvency regime the most. Later, GRR travelled to India, where in a ceremony held in New Delhi, the award was received by Justice M.M. Kumar, the then President of National Company Law Tribunal, Dr M.S. Sahoo, then Chairperson of Insolvency and Bankruptcy Board of India, and Mr G.K. Singh, then Joint Secretary in the Ministry of Corporate Affairs, on behalf of NCLT, IBBI and MCA, respectively. The award citation says:

The award for ‘most improved jurisdiction’ is extremely well-deserved… India narrowly missed out on the title to Singapore last year, but as the Insolvency and Bankruptcy Law of 2016 has begun to be tested in the new network of NCLTs resulting in several key, precedent-setting judgements, we felt it was the right time to celebrate India’s progress in this sector … . It has been all change in India since it enacted its first-ever Insolvency and Bankruptcy Code in 2016, bringing in greater empowerment for creditors, registered IPs and a whole new network of National Company Law Tribunals. An almost constant stream of improvements and updates has followed in response to feedback and practical experience: for example, in early 2018, a new regulator, the Insolvency and Bankruptcy Board of India, introduced additional rules defining how to calculate the fair value of debtors’ assets requiring registered valuers to do the maths. Case law is now beginning to build up on the interpretation of the new rules too…

32 … BLRC-2

It is nearly 10 years since BLRC was constituted in August 2014, and 9 since it submitted its first report. In the fast-paced global developments of the last decade and the rapid evolution of India’s economic and geopolitical position, and for reasons noted in the book, it is time to set up BLRC-2 with the composition and terms of reference suggested through many chapters of this book. One of the perils of the rapid development of insolvency reforms over the last nearly five decades has been that in the quest of improving the insolvency law for the betterment of economic and social systems, the sight of humans, which is expected to be the end beneficiary of reforms, has been lost.

33. A collaborative determination of 1.4 billion Indian minds

In his address on 15 August 2022 to mark 75 years since Independence, Prime Minister Narendra Modi pledged to turn India into a developed country in the next quarter-century. When India aspires to become a developed country, it only seeks to reclaim its glorious past. The next two decades offer an incredible opportunity to reclaim a place in the global economy which is rightfully ours. However, this will require all Indians to work together. It should become a representation of the collective dream of 1.4 billion hearts, a resolve of 1.4 billion Indians, and a determination of 1.4 billion minds, to make our country a Viksit Bharat by 2047 if not earlier.