New Delhi, May 29 -- A decade before the Insolvency and Bankruptcy Code (IBC), 2016 came into force, there was no single legislation that could suitably address corporate distress.

Creditors had to pursue parallel remedies under various acts like the Sick Industrial Companies Act (SICA), Recovery of Debts due to Banks and Financial Institutions Act (RDDBFI), Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), etc. Even the Reserve Bank of India's (RBI) stress resolution mechanisms failed to address the issue of distress.

While creditors struggled with multiple laws and frameworks, promoters retained control over insolvent companies. More importantly, delays in court proceedings caus...