SC ruling does not disturb creditors' rights to insolvency proceedings, says IBBI chief M S Sahoo
Updated : April 07, 2019 04:18 PM IST
Sahoo said the court's judgement on RBI circular does not disturb rights of creditors to initiate insolvency proceeding or any provision in the Insolvency and Bankruptcy Code (IBC).
In view of this judgement, a bank-creditor now needs to ask itself when it should initiate the proceeding and justify itself why it is initiating or not initiating the proceeding in case of a default.
"This will bring in behavioural changes among the creditors, making them more responsible for their actions and inactions," Sahoo told PTI.