Inauguration of the Sixth Batch of the Post Graduate Insolvency Programme (PGIP) at Indian Institute of Corporate Affairs (IICA)
The Indian Institute of Corporate Affairs (IICA), under the Ministry of Corporate Affairs, inaugurated the sixth batch of its flagship Post Graduate Insolvency Programme (PGIP) on 8th July 2024 in Manesar. This prestigious event was attended by several distinguished luminaries, including:
- Hon’ble Justice Sh. S. Ravindra Bhat, Judge, Supreme Court of India (Retd.)
- Dr. Ajay Bhushan Prasad Pandey, Director General and CEO, IICA & Chairperson of the National Financial Reporting Authority
- Dr. Alok Srivastava, Former Technical Member, NCLAT
- Shri Sudhaker Shukla, Whole Time Member of IBBI
- Dr. K.L. Dhingra, Head of the Centre for Insolvency and Bankruptcy at IICA
CHIEF GUEST’S INAUGURAL ADDRESS
In his inaugural address, Hon’ble Justice S. Ravindra Bhat, the Chief Guest, discussed the evolution of the Insolvency and Bankruptcy Code (IBC) over the past eight years. He compared the objectives of the IBC, 2016, with the Recovery of Debts Due to Banks and Financial Institutions (RDB) Act, 1993, and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, highlighting the fragmented nature of the earlier laws.
KEY POINTS FROM THE ADDRESS
JOURNEY OF IBC
- Justice Bhat elaborated on the significant progress made by the IBC since its inception in 2016.
- He emphasized the unified and time-bound process introduced by the IBC, which contrasts with the fragmented approaches of earlier laws.
ROLE OF NCLT, NCLAT, AND CIRP:
- The roles of the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal (NCLAT), and the Corporate Insolvency Resolution Process (CIRP) were discussed in detail.
- He highlighted the importance of Insolvency Professionals (IPs) under the IBC and their contribution to the resolution process.
EFFICIENT RESOLUTION PROCESS
- Justice Bhat stressed the necessity for an efficient resolution process, with prioritization of resolution over liquidation.
- He underscored the significance of timely resolutions to prevent value erosion of the distressed assets.
CHALLENGES BEFORE IBC
The Chief Guest pointed out several challenges faced by the IBC, including:
- Timely resolution of cases
- Infrastructure issues
- Effective resolution and recovery mechanisms
ROLE OF INSOLVENCY PROFESSIONALS (IPS):
- Justice Bhat discussed the essential skill sets required by IPs, such as:
- Resolution and negotiation skills
- Management skills
- He elaborated on the multifaceted roles of IPs, which include:
- Collecting claims
- Managing assets and finances
- Constituting the Committee of Creditors (CoC)
- Regulating the voting process within the CoC
- He also highlighted the changes in the credit culture post the introduction of IBC 2016 in India, emphasize the enhanced discipline & accountability in financial ecosystem.
The inauguration of the sixth batch of the PGIP at IICA marks another milestone in strengthening the insolvency framework in India, contributing to the development of skilled professionals adept at navigating the complexities of insolvency and bankruptcy cases.
