Introduction of Guidelines for the Committee of Creditors – A Step in the Right Direction

The Insolvency and Bankruptcy Code, 2016 (Code) is an ever evolving legislation which is aligned with the economic needs of the country. While frequent revisions have been carried out in the Code and Insolvency and Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016 to bring forth onus and responsibility in the roles of the resolution professional and allied professional, the role of the creditors comprising the committee of creditors (CoC) has long remained vague and undefined. In order to bridge this gap, the Insolvency and Bankruptcy Board of India (IBBI) has on 06 August 2024 introduced the ‘Guidelines for Committee of Creditors’  (Guidelines).