Key facts
- Corporate affairs secretary Deepti Gaur Mukerjee urged insolvency professionals to prioritize rescuing distressed firms.
- She stressed the importance of maintaining professional integrity and exhausting all avenues for revival.
- Mukerjee highlighted the code of conduct as a critical ethical anchor for the Insolvency and Bankruptcy Code.
- She called for strict adherence to timelines to expedite case disposal.
- Liquidation was emphasized as a last resort due to its negative economic and social consequences.
Corporate affairs secretary Deepti Gaur Mukerjee has urged insolvency professionals to "push boundaries of corporate turnaround" to rescue distressed firms and prevent liquidation. Speaking at an event organized by the Indian Institute of Corporate Affairs, Mukerjee emphasized the need for professionals to exhaust all avenues to revive entities, stressing that maintaining utmost professional integrity is paramount.
Mukerjee described the code of conduct for insolvency professionals as a "non-negotiable ethical anchor," stating that half of the Insolvency and Bankruptcy Code's (IBC's) success depends on their effective discharge of duties. She encouraged professionals to engage with every potential resolution applicant to fight for the survival of stressed companies, noting that while creditors exercise commercial wisdom, professionals hold the steering wheel.
With 4,656 insolvency professionals and 98 entities registered as of March 2026, the secretary exhorted them to strictly adhere to timelines, which would also aid adjudicating and appellate authorities in timely case disposal. Liquidation, she underscored, should be the last resort due to its permanent loss of jobs, broken supply chains, and evaporation of economic value.
As of March 2026, the IBC has facilitated the resolution of 1,419 companies, recovering Rs 4.32 lakh crore for creditors, a recovery rate of 30.6% of admitted claims. While experts attribute subdued recovery to delays, data for 1,298 companies shows a sharp increase in recovery to 94.6% of fair value and 166.9% of liquidation value. However, 78% of the 1,885 ongoing cases have exceeded the 270-day resolution limit (330 days including litigation). Mukerjee highlighted three non-negotiables for insolvency professionals: integrity and objectivity; independence and impartiality; and professional competence. She stated that trust is their only currency and that the IBC's Code of Conduct serves as their anchor, shield, and lodestar against high temptations.