Some gaps in ILC recommendations on resolution process, say experts

Report seen as unclear on who should pursue cases related to avoidable transactions and improper trading under bankruptcy code

A report by the Insolvency Law Committee (ILC) has said the resolution process of insolvent firms could be expedited by continuing legal action against improper or fraudulent transactions even after the corporate resolution process has been completed.

The report however doesn’t say who should take charge of the legal action regarding such transactions, said Insolvency and Bankruptcy Code (IBC) experts.

The Committee cites transactions that may be wrong or fraudulent related to the insolvency process (avoidable transactions and improper trading). It considered the question whether legal action against such transactions should continue after the resolution process of an insolvent firm