This refers to the editorial, “A game-changing Code” (May 13). With a plethora of jaded laws that lack transparency and accountability, credit and asset recovery in India is a tough job. The credit recovery history in the country is also dismal as compared to those in other countries. Almost always, the laws governing debt-recovery stood to benefit the debtors rather than the lenders. However, the Insolvency and Bankruptcy Code aims to change history by fixing a time limit for debt-ridden companies to clear their dues. The IBC will act as a warning especially to wilful defaulters who are prone to take undue advantage of lax laws governing insolvency. The time-bound recovery process will enable smoother ‘ease of doing business’.
The Code will benefit all stakeholders, and more importantly, banks which are always at the receiving end of debt-recovery process will find the going easy. The onus is now on the Government to ensure that measures provided to empower debt-recovery tribunals do not run into roadblocks.