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Why IBC should give bankrupting promoters a second chance

​While the Sick Industrial Companies Act 1985 (SICA) provided ways for debtors to thwart creditors and recovery proceedings by allowing them moratoriums, IBC clamped down on errant promoters. A key provision, Section 29A, which prohibits backdoor entry of promoters to the company, was introduced. It barred them from submitting resolution plans and schemes under Section 230 of the Companies Act 2013, thereby restraining their right to regain control of the corporate debtor. ....

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