Over 42,000 Cases Brought For Resolution Under Insolvency Law, Says IBBI Official

More than 42,000 cases have been presented for resolution under the Insolvency and Bankruptcy Code (IBC), prompting a shift in business behaviour towards prioritising financial stability and sustainable practices, as stated by an official.

Speaking at an event in the national capital on Tuesday, IBBI Whole Time Member Sudhaker Shukla highlighted that while competition and innovation drive a company, resolvability is a goal to cherish, ensuring companies remain sustainable and adaptable.

The Insolvency and Bankruptcy Board of India (IBBI) plays a crucial role in implementing the IBC.

During a conference organised by industry body Assocham, Shukla pointed out that these positive outcomes have induced a behavioural change in the business landscape, encouraging companies to focus on financial stability and sustainable practices.

Pravin Kumar Tiwari, Full-Time Member at the National Financial Reporting Authority (NFRA), outlined the regulator's role in establishing high-quality standards and maintaining effective oversight over accounting and auditing matters.

"This is aimed at safeguarding public interest, investors, creditors, and prescribed classes of companies," he added.

He also mentioned that since its establishment, the NFRA has reviewed and endorsed 42 proposals from ICAI related to the issuance of new Indian accounting standards and amendments to existing ones.

Anita Shah Akella, Joint Secretary at the Ministry of Corporate Affairs, emphasized the significance of ESG (Environmental, Social and Governance) aspects within corporations.

"In recent years, there has been a substantial improvement in the field of accounting and auditing, but what we primarily audit is policy and the gaps within it. We've observed that ESG hasn't yet been as integrated into company policy as it should be...," she added.

As ESG continues to be increasingly intertwined with business interests and SebiI (Securities and Exchange Board of India) mandates the Business Responsibility and Sustainability Reporting (BRSR), its related obligations, among others, will also play a substantial role for auditors in bankruptcy proceedings.

"Companies and legal advisors must be prepared for such complexities," she noted.