IBC favors lenders over operational creditors

IBC favors lenders over operational creditors — India's Insolvency and Bankruptcy Code (IBC) continues to prioritize financial creditors, leaving operational creditors with weaker recovery prospects. Experts argue that the current framework grants disproportionate power to banks and financial institutions. This imbalance may affect smaller suppliers and service providers in resolution processes. Recent cases highlight delays and lower payouts for operational creditors.
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