The implementation of the Insolvency and Bankruptcy Code (IBC), 2016 needs concerted efforts to enhance expertise, streamline procedures, and address legal complexities to ensure the efficient functioning of the insolvency regime. Examine.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

4. The implementation of the Insolvency and Bankruptcy Code (IBC), 2016 needs concerted efforts to enhance expertise, streamline procedures, and address legal complexities to ensure the efficient functioning of the insolvency regime. Examine. (250 words)

Difficulty level: Moderate

Reference: Live Mint , Insights on India

Why the question: During the resolution plan approval, only about 15% is paid by the purchaser and the repayment takes years without any further interest collected by the banks, according to the financial stability report released by banking regulator Reserve Bank of India on December 28, 2023. Key Demand of the question: To write about the various issues in IBC and steps needed to resolve it. Directive word: Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. Structure of the answer: Introduction: Begin by writing about Insolvency and Bankruptcy Code (IBC) its aims and objectives. Body: First, list down the various features and achievements of IBC since its introduction. Next, write about the various limitations in the performance of IBC. Next, write about the reform that is needed to ensure that IBC performance leads to strengthening of its supporting role in capital formation and economic growth of the country. Conclusion: Conclude with a way forward.

Why the question:

During the resolution plan approval, only about 15% is paid by the purchaser and the repayment takes years without any further interest collected by the banks, according to the financial stability report released by banking regulator Reserve Bank of India on December 28, 2023.

Key Demand of the question:

To write about the various issues in IBC and steps needed to resolve it.

Directive word:

Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction:

Begin by writing about Insolvency and Bankruptcy Code (IBC) its aims and objectives.

First, list down the various features and achievements of IBC since its introduction.

Next, write about the various limitations in the performance of IBC.

Next, write about the reform that is needed to ensure that IBC performance leads to strengthening of its supporting role in capital formation and economic growth of the country.

Conclusion:

Conclude with a way forward.