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Breaking: OYO files for bankruptcy - Details here
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Pre-packaged resolution for MSMEs: Govt sets minimum default threshold at Rs 10 lakh
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IBC Tweak To Resolve MSME Bad Loans Is A Necessary Evil, But Caveats Are In OrderÂ
by R Jagannathan - Apr 6, 2021 05:35 AM
Nirmala Sitharaman and Narendra Modi
Snapshot
The IBC tweak can be defended on grounds of practicality, but there is a caveat: we should not allow the core principle to be hijacked entirely by slowly extending the process to all kinds of companies, big or small.
If at all further evidence is needed, the amendment to the Insolvency and Bankruptcy Code announced yesterday (5 April) through an ordinance shows how core principles always fray at the edges when they crash against the hard rocks of Indian reality.
86% insolvency cases pending over 270 days
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86% insolvency cases pending over 270 days
TNN / Apr 6, 2021, 04:08 IST
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NEW DELHI: Over 85% of the ongoing corporate insolvency cases have dragged beyond 270 days, which was the upper limit for finalisation of the process.
Latest data released by the Insolvency & Bankruptcy Board of India (IBBI) on Monday showed that up to December, 1,481 of the 1,717 pending cases had extended beyond 270 days.
The four-year-old Insolvency & Bankruptcy Code which is credited with changing the debt repayment culture had provided for resolution within 180 days, with a possible extension of another 90 days. But, adjournments and multiple legal challenges in cases have meant that they usually go past the prescribed timelines.
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