ROLE OF IBC IN RESOLUTION OF NPAS

AUTHOR: TEJAN SINGH , STUDENT AT AMITY LAW SCHOOL, NOIDA

BEST CITATION -TEJAN SINGH, ROLE OF IBC IN RESOLUTION OF NPAS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 922-929, APIS – 3920 – 0001 & ISSN – 2583-2344

SHIFT FROM RECOVERY TO RESOLUTION

The introduction of the Insolvency and Bankruptcy Code (IBC), 2016, marked a fundamental shift in how non-performing assets (NPAs) are managed in India. Prior to the implementation of the IBC, the focus was largely on the recovery of dues, primarily through legal remedies such as the SARFAESI Act, 2002, and the Debt Recovery Tribunals (DRTs). These frameworks aimed at asset recovery but faced challenges due to slow processes, fragmented legal remedies, and insufficient mechanisms to deal with the complex financial distress faced by businesses.

The shift from recovery to resolution under the IBC represents a more comprehensive approach to tackling NPAs. The key difference lies in the focus on resolving the financial distress of businesses, rather than simply recovering the dues of creditors.^[1]

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[1] S. D. Singhania, Insolvency and Bankruptcy Code 2016: A Comprehensive Guide (3rd edn, LexisNexis 2021).