NPA Crisis: Is IBC the Need of the Hour?

Nothing in this world is perfect and everything and hasits own set of advantages as well as disadvantages. This principle equally applies to any policy or legislation formulated by the government, irrespective of the nature or type of the policy and the IBC is not an exception to this. With the aim of resolving the NPA crisis in India and enabling a smooth flow of credit within the economy in mind, the Insolvency and Bankruptcy Code was enacted by the government in 2016. Although the IBC seemed to be quite a robust and sophisticated policy, it eventually became a victim to the loopholes of the system. These loopholes affected its functioning and overall productivity thereby affecting the end results. Though the Insolvency and Bankruptcy Code did play an instrumental role in bringing down the gross percentage of the non - performing assets and eventually changing the scenario of insolvency in India, it did not live up to the desired expectations of the people. The author through this research paper tries to throw some light on the events which lead to the enactment of the IBC and a critical analysis of the Code.