INDIA Trends and Developments Contributed by: Shardul Shroff, Misha, Aishwarya Satija and Kritika Poddar, Shardul Amarchand Mangaldas & Co
the corporate debtor may become clear once subor - dinate legislation is made available. This includes the manner in which this provision will interact with the group insolvency framework. Conclusion The Bill marks a decisive step towards enabling a more coherent and efficient insolvency framework in India. By introducing a framework for co-ordinating insol - vency proceedings of corporate groups, it seeks to address structural inefficiencies in the current regime and aligns the law with the economic realities. This framework is designed to give stakeholders flexibility to design the best-suited remedy for the facts and circumstances of a particular group. The Bill also pro - vides a mechanism to utilise the synergies of assets owned by corporate debtors and their guarantors for the benefit of creditors. The group insolvency and the pooling of guarantor assets are not isolated reforms but complementary components of a broader struc - tural reconfiguration of India’s insolvency law. While the former establishes the procedural infrastructure for co-ordinated resolution, the latter provides a sub - stantive mechanism that can maximise value within that infrastructure. The Bill promises to plug crucial gaps in the IBC and usher in a new era that moves beyond the rigidities of single entity-based insolvency proceedings.
218 CHAMBERS.COM
Powered by FlippingBook