tag:blogger.com,1999:blog-19649274.post5121923139172178665..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Sequencing issues in building jurisprudence: the problems of large bankruptcy casesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-19649274.post-71545153286213874502018-07-08T19:17:04.925+05:302018-07-08T19:17:04.925+05:30Yes, the RBI-12 action made IBC the cynosure and t...Yes, the RBI-12 action made IBC the cynosure and that helped.<br /><br />I feel that IBC would have gained legitimacy, perhaps to a greater extent, if we had done a stream of Rs.1000 crore cases. Those would have been less drawn out (as the stakes are smaller). There would have been better recovery rates. It would have been more results and reduced conflicts/delays.<br /><br />The reason why the 180 day deadline is not working is because the stakes in the early cases are too high and the institutional infrastructure crumbled. Once bad precedents were established, this harmed the overall bankruptcy process.xhttps://www.blogger.com/profile/14462096253602478048noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-15388384119932259402018-07-08T12:19:15.279+05:302018-07-08T12:19:15.279+05:30I understand that the RBI's decision to direct...I understand that the RBI's decision to direct the 12 banks to the NCLT bolstered the resolution process, increasing its legitimacy, and in so doing encouraged many others to initiate proceedings. Do you agree? If so, then perhaps the consequences of the RBI's decision are more complex. Also, isn't the biggest problem that the cases are not being decided in 180 or even 270 days? If so, have the decisions for the big cases been delayed more than for the smaller cases? John E-Gnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-39951292417395034262018-07-07T15:45:47.779+05:302018-07-07T15:45:47.779+05:30I share your objective that the 12 should be resol...I share your objective that the 12 should be resolved!<br /><br />But to do a big case requires a well functioning bankruptcy institutional apparatus. On day 1 we didn't have it.<br /><br />Would you rather suffer big losses on account of low recovery rates for those 12? And would you rather suffer from the development of bad jurisprudence, which will hamper India for a long time?<br /><br />We share the same goal, my idea is on the steps that take us there.xhttps://www.blogger.com/profile/14462096253602478048noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-47866288855993823662018-07-07T15:44:30.451+05:302018-07-07T15:44:30.451+05:30:) Yes I think so. Getting to the large defaulters...:) Yes I think so. Getting to the large defaulters is of course everyone's objective. But there's a sequence that should be followed in order to get to the requisite State capacity. Else we fail. xhttps://www.blogger.com/profile/14462096253602478048noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-884761551316054722018-07-07T14:49:11.524+05:302018-07-07T14:49:11.524+05:30is sequencing (small first and big later) is not a...is sequencing (small first and big later) is not as bad as delaying w.r.t large defaultersAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-56426166631508873872018-07-07T10:17:23.338+05:302018-07-07T10:17:23.338+05:30It is also possible that the underlying rationale ...It is also possible that the underlying rationale in the short term is NOT the sanctity of the law (to be honest when was this ever present or cared about in the Indian banking jurisprudence; lets really not kid ourselves) but perhaps to solve the biggest unresolved cases out there. These 12 (and the subsequent ones after that) did hold great promise that in their resolution atleast the ticking time-bomb on many banking balance sheets could be avoided. <br /><br />Anonymousnoreply@blogger.com