India’s Insolvency and Bankruptcy Code (IBC), 2016, represents a pivotal economic reform, replacing a fragmented and inefficient pre-existing insolvency regime with a consolidated, time-bound framework. The Code’s core objective is the revival of distressed companies, shifting the paradigm from a ‘debtor in control’ to a ‘creditor in control’ model to maximize asset value. This is achieved through the Corporate Insolvency Resolution Process (CIRP), a marketdriven mechanism where the Committee of Creditors (CoC) makes key decisions based on their commercial wisdom. Central to this process is the mandatory and crucial role of IBBI-Registered Valuers, who provide independent assessments of a company’s Fair Value and Liquidation Value, forming the financial bedrock for all resolution plans. While facing challenges like procedural delays, the IBC has successfully improved recovery rates, instilled a new culture of credit discipline among promoters, and strengthened the nation’s banking sector, thereby preserving economic value, and supporting overall financial stability.
