Misuse of Insolvency and Bankruptcy Code by loan defaulters has tendency to badly impact economy: HC
Published on: March 19, 2026, 5:39 p.m. | Source: The Economic Times
The Bombay High Court has strongly condemned loan defaulters and guarantors for exploiting the Insolvency and Bankruptcy Code. This practice allows them to seek immunity by triggering a moratorium, thereby stalling recovery efforts by secured creditors. The court highlighted that such actions frustrate the IBC's core objectives and negatively affect the nation's economy.
