K. Vidya Comments on the Use of IBC Proceedings for Debt Recovery by Smaller Companies

The Insolvency and Bankruptcy Code, 2016 (IBC) has emerged as an important mechanism for creditors seeking recovery of outstanding dues, including smaller companies dealing with larger corporate debtors. In a recent article published by Mint titled “Polycab Case Bares Small Cos Wielding IBC Sword for Dues”, K. Vidya shared insights on the commercial implications of initiating insolvency proceedings for debt recovery.

Commenting on the matter, Vidya observed that the consequences of initiating insolvency proceedings can create substantial commercial pressure on a corporate debtor to settle outstanding claims, even where the amount involved is relatively modest.

Her comments highlight the significance of the IBC as a debt recovery mechanism and its wider commercial implications for corporate debtors and creditors, particularly smaller businesses seeking to enforce their payment claims.

Read the full article here: https://www.livemint.com/companies/polycab-insolvency-apex-court-creditors-listed-companies-bankruptcy-debt-recovery-11792398289181.html 

Last Updated on 2 November, 2026