economics medium Fill in the Blank

The Insolvency and Bankruptcy Code (IBC), 2016, shifted the insolvency resolution paradigm in India from a 'debtor-in-possession' model to a '___-in-control' model.

  1. Okun's
  2. health and education
  3. Veblen
  4. creditor

Answer: creditor

Prior to the IBC, defaulting promoters retained control of their companies while restructuring debts, often leading to endless delays. The IBC empowers the Committee of Creditors (CoC) to take control of the defaulting entity, allowing them to either approve a resolution plan to revive the company or liquidate its assets within a strict 330-day timeline.

Topic Banking - NPA Resolution
Exam Relevance UPSC Prelims, Banking, SSC
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