Union Minister Nirmala Sitharaman on Saturday said insolvency law cannot lose its “sheen”.
Sitharaman, who is in charge of finance and corporate affairs ministries, was speaking at a function in the national capital to mark the sixth annual day of the Insolvency and Bankruptcy Board of India (IBBI).
Speaking about the Code over the last six years and the way forward, she also said that “we cannot have stress signals go unnoticed”.
IBBI is a key institution in the implementation of the Insolvency and Bankruptcy Code (IBC), which provides for a market-linked and time-bound resolution of distressed firms. The code came into force in 2016.
National Company Law Tribunal President Chief Justice (Retd) Ramalingam Sudhakar and Competition Commission of India (CCI) Chairperson Ashok Kumar Gupta, among others, were present.
As many as 1,934 corporate debtors have been rescued through the Code till June this year. These include 517 through resolution plans, 774 through appeal or review or settlement and 643 through withdrawal. In value terms, around 69 per cent of distressed assets, which entered the process under the Code, have been resolved, as per IBBI.