Stakeholders discussed the insolvency ecosystem and its future direction
The Misra Centre for Financial Markets and Economy at the Indian Institute of Management Ahmedabad (IIMA),in collaboration with the Insolvency and Bankruptcy Board of India (IBBI),organised the second edition of the Annual Research Workshop on Insolvency and Bankruptcy on March 1-2, 2025.
The inaugural session was attended by Professor Satish Deodhar, Dean (Faculty), IIMA; Hon’bleChief Justice (Retd.) RamalingamSudhakar, President,National Company Law Tribunal (NCLT); Mr. Ravi Mital,Chairperson, IBBI; and Mr. Avinash Desai,Senior Advocate,Telangana High Court.
The two-day workshop aimed to understand the challenges and opportunities for insolvency professionals within the insolvency ecosystemin India,analysethe insolvency profession’s interaction with various stakeholders, and draw insights from global practices.Spearheaded by IIMA faculty members, Professor MP Ram Mohan and Professor Balagopal Gopalakrishnan, the workshop saw enthusiastic participation frominsolvency professionals, researchers, and members ofacademia.
Professor Satish Deodhar, Dean (Faculty), IIMA, extended a warm welcome to all the participants and expressed his enthusiasm for the upcoming sessions. He hoped that the workshop would prove fruitful for all the stakeholders and that the next two days would foster engaging and insightful discussions, contributing to a deeper understanding of the insolvency ecosystem.
Presenting the inaugural address, Hon’ble Chief Justice (Retd.) Ramalingam Sudhakar, President, NCLT,urged researchers to chart a comprehensive future course of action for the Insolvency and Bankruptcy Code, 2016 (IBC) and NCLT.“The IBC has created a unique ecosystem. India’s insolvency jurisdiction is much ahead of other countries. Looking to the future, we would like to chart out a 10-year plan from an independent third-party perspective. This plan would outline the roadmap forfuture amendments and improvements to the code, ensuring its continued relevance and effectiveness”, he said.
Mr. Ravi Mital, Chairperson, IBBI,noted the significance of such conferences and their role in policymaking. He stated, “We take these conferences very seriously and carefully listen to researchers and their insights, which helps us in policymaking. We note every suggestion that is made during paper presentations,then review these suggestions and evaluatetheir potential for implementation.”He also highlighted the achievements of the IBC and its impact on various sectors, including the Indian credit market, steel industry, and real estate sector.
Mr. Avinash Desai, Senior Advocate, Telangana High Court,said,“IBC has changed the Indian economic and financial landscape providing a streamlined, time-bound, and creditor-driven mechanism to solve corporate distress. Before its enactment, India’s insolvency resolution process was sluggish, inefficient, and heavily skewed in favour of defaulters, leading to significant delays and poor recovery rates. The IBC has significantly improved this and has instilledcredit discipline, improved investor confidence, and even strengthened India’s ease of doing business ranking.”He also shared some good practices from other countries which can be brought to India.He added that it is crucial to remain vigilant to emerging challenges and ensure that the IBC framework evolves to address the dynamic needs of the economy.
The inaugural session was followed by an insightful panel discussion on ‘Assessing the Insolvency Profession’, featuring Mr.Rahul Madan, Managing Director, Indian Institute of Insolvency Professionals of ICAI; Mr.Shiv Anant Shanker, Chief General Manager, IBBI; Mr. G S Narasimha Prasad, Managing Director, Insolvency Professional Agency of ICAI; andCA Sunit Shah, Insolvency Professional, SKYZ & Co. Chartered Accountants.The panel discussion shed light on the complexities and evolution of the insolvency profession and the roles of different entities involved. Participants highlighted the role of Insolvency Professional Agencies (IPAs) in developing the insolvency profession ecosystem and its challenges, the parameters on which the regulators assess insolvency professionals, IPAs and enforcement of professional standards of insolvency professionals, and their own experiences of working in the insolvency ecosystem.
Over two days, the workshop also featured several thought-provoking paper presentation sessions on various topics related to the insolvency ecosystem.