New Delhi, Sept. 27 -- The Insolvency and Bankruptcy Code (IBC), a creditor-in-control insolvency process, completed 10 years earlier this year. While we celebrate its many achievements, this is a good time to critically evaluate the code and its alignment with the larger Indian economy. Three features of its architecture deserve scrutiny.

The IBC came into being as a tool to address a 'twin balance sheet' problem, characterized by simultaneous distress on the balance sheets of Indian corporates and public sector banks. It achieved this objective with aplomb: today, non-performing assets are at a multi-decadal low, and private non- financial companies have comfortable debt-service ratios.

But the problem on the road to Viksit Bharat is ...