Pre-Packaged Insolvency for MSMEs under the IBC: Challenges, Underutilization, and the Way Forward
Introduction Pre-Packaged Insolvency Resolution Process (PPIRP) was introduced by the Insolvency and Bankruptcy Code (Amendment) Act, 2021 (effective 4 April 2021) via Sections 54A–54P (Chapter III-A) specifically for corporate MSMEs. The legislature intended PPIRP as a swift, creditor-backed rescue mechanism: it “prioritise[s] speed, flexibility, and minimal court intervention” and provides a “speedy and cost-effective mechanism” […]