The Role of Adjudicating Authority under the IBC, 2016

The article explores the role of Adjudicating Authorities (AAs), specifically the National Company Law Tribunal (NCLT), under the Insolvency and Bankruptcy Code (IBC), 2016. It highlights the IBC's aim to establish a time-bound insolvency resolution process, emphasizing the primacy of the Committee of Creditors' (CoC) commercial wisdom over judicial discretion. While the IBC limits the AA's role to procedural oversight, recent judicial decisions have introduced procedural rigidity and post-approval interference, challenging the Code's core principles and creating uncertainty for stakeholders. The article discusses the 2025 IBC (Amendment) Bill, which seeks to reduce AA discretion, strengthen the CoC's authority, and ensure faster insolvency resolutions. It concludes that preserving the IBC's original design, focused on economic revival and procedural efficiency, is essential for the sustainability of India's insolvency framework.