SC dismisses IBC application filed more than three years after default

Divakar Vijayasarathy, managing partner, DVS Advisors, termed the judgement a big jolt to the IBC amidst rising cases of NPAs. He says: “Though IBC was introduced with a view to expedite resolution of NPAs, but by virtue of this judgement the same wouldn’t be applicable to defaults which more than 3 years old. These cases would have to be settled under existing laws through DRT, which is time consuming and largely ineffective. The response of the government to this decision would be interesting as this puts a serious blot on the overall resolution process and the entire financial ecosystem is the loser.”