PHDCCI Hosts IBC Pulse Conference in Lucknow to Address Insolvency Reforms
The PHD Chamber of Commerce and Industry (PHDCCI) organized a significant conference titled IBC Pulse in Lucknow on Saturday, focusing on the emerging trends, challenges, and reforms under the Insolvency and Bankruptcy Code (IBC), 2016. The event aimed to strengthen the National Company Law Tribunal (NCLT) framework for faster and more effective resolution of distressed assets, drawing attention from key stakeholders across India.
Key Highlights from the Conference
Deputy Chief Minister Brajesh Pathak underscored the importance of improving India's credit culture and banking reforms to reduce loan defaults. He emphasized the role of the IBC in recovering non-performing assets, stating, "UP has shown significant development in strengthening credit culture and enabling sustainable industrial growth." This highlights the state's proactive approach in leveraging the IBC for economic stability.
Transformative Impact of IBC on Financial Systems
Chairperson of the Debt Recovery Appellate Tribunal (DRAT) Allahabad, Justice Rajesh Dayal Khare, described the IBC as a transformative tool for reintegrating blocked capital into the financial system. He noted that the code has been instrumental in streamlining insolvency processes and enhancing creditor rights, which is crucial for India's growing economy.
Decline in NPAs and Strategic Use of IBC
G P Madaan, Chair of the PHDCCI NCLT and IBC Committee, provided insightful data, revealing that gross non-performing assets (NPAs) have declined to a historic low of 2.2%, with net NPAs at 0.5%. He remarked, "The best use of the IBC is not to use it," suggesting that the code's effectiveness lies in its deterrent effect, encouraging better financial practices among corporates to avoid insolvency.
Technical Sessions and Expert Insights
The conference featured technical sessions that delved into various aspects of insolvency, including:
- Corporate insolvency resolution
- Personal guarantors' insolvency
- Liquidation practices
Speakers included advocates, NCLT members, insolvency professionals, and law faculty, such as Dr UK Chaudhary, Prof Amar Pal Singh, and Praveen Gupta. They highlighted judicial developments, cross-border insolvency challenges, and the growing MSME ecosystem, providing a comprehensive overview of the current landscape.
Wide Participation and Future Implications
The event attracted 150 delegates from across India, reflecting the widespread interest in insolvency reforms. The discussions underscored the need for continuous improvements in the IBC framework to address global economic headwinds and support sustainable industrial growth. This conference serves as a pivotal platform for stakeholders to collaborate on enhancing India's insolvency resolution mechanisms.
