IBC: A Response to Delays, Defaults, and Debt Traps
India’s financial system, until recently, grappled with a major problem: ineƯective and
delayed mechanisms for resolving bad debts and insolvency. Insolvency and debt crises
have long posed significant challenges to India’s economic stability. For years, lenders,
whether financial institutions or operational creditors, struggled to recover dues from
defaulting businesses through a maze of outdated and fragmented laws.