Project-wise Insolvency Contradicts IBC Principles: Baijayant Panda
Business
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Moneycontrol•15-01-2026, 07:59
Project-wise Insolvency Contradicts IBC Principles: Baijayant Panda
- •Baijayant Panda, chairperson of the Parliament’s Select Committee on IBC, states that project-wise insolvency contradicts the fundamental tenets of the IBC.
- •He emphasizes that insolvency applies to a company, not an individual project, even though project-wise resolution is possible.
- •The IBC Amendment Bill focuses on strict timelines, aiming to reduce resolution periods and increase recovery rates, potentially doubling the current Rs 50,000-60,000 crore annual recovery.
- •The Bill introduces easier resolution for MSMEs through pre-packaged plans, lowering the financial creditor vote requirement from 66% to 51%.
- •It also addresses cross-border and group insolvency, clarifies the clean slate principle, and recommends a 3-month timeline for NCLAT appeals to tackle case backlogs.
Why It Matters: Project-wise insolvency is against IBC principles; the law applies to companies, not individual projects.
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