The ‘nil’ payment paradox, starkly illustrated in the case of Vadraj Cement Limited, is more than just a procedural flaw; it is a fundamental breach of the very promise made by IBC upon its enactment, which is the revival of businesses and equitable treatment of all the stakeholders. 

While the regulation has the potential to facilitate faster and more value-maximizing outcomes, the lack of statutory guidance and procedural safeguards could inadvertently undermine the IBC’s foundational objectives.

The IBBI has realized the value of market-driven resolution which it has effectively pivoted towards. The timing of the notification of these amendments must also be appreciated. India is notoriously a slow insolvency jurisdiction, and such perceptions can seriously damage credit availability in markets.

The pre-pack insolvency framework was crafted with the best of intentions. It aimed to protect MSMEs from the procedural weight of CIRP while ensuring that their businesses could be salvaged quickly and quietly. But in practice, it remains a tool too complex, too exclusive, and too disconnected from how MSMEs actually function.

India’s unique structure makes both asset-wise bids and DIP financing hard to pull off. Courts and regulators have shown the law can support flexible sales and super-priority finance, but operationally, every step bumps into entrenched obstacles.

[ Apeksha is a student at National University of Study and Research in Law. ] The Insolvency and Bankruptcy Code 2016  ( IBC ) was...

The proposal, if accepted, will provide a fillip to exploring mediation in other aspects of insolvency. While insolvency mediation is an intricate issue, proactive proposals will facilitate stakeholder dialogue and aid in resolving inconsistencies.

The IBBI’s 2025 amendments significantly improve India’s insolvency framework by making it more aligned with global best practices.

In this article, the author identifies two major challenges revealed by the impugned judgments: lack of a statutory time limit to implement resolution plans and imprecise role of monitoring committees in ensuring implementation of resolution plans.

As the IBC framework continues to evolve, successful distressed M&A will require specialized expertise, innovative structuring, and careful navigation of the unique legal complexities that characterize acquisitions under CIRP.

The article suggests some alternatives to green channel mechanism that would expedite the CIRP.

Narrow interpretation of the definition of ‘public servant’ is concerning due to its potential implications.

This article seeks to evaluate the role of the creditor-in-control model in achieving the objectives of the Insolvency and Bankruptcy Code.