Executive Summary
“Commercial recovery requires a dual-track strategy combining Sarfaesi, DRT proceedings, and IBC remedies. This paper outlines pre-packaged insolvency mechanisms and expedited recovery pathways for banking panels.”
1. Synergizing SARFAESI & IBC Remedies
Financial institutions facing non-performing assets (NPAs) must evaluate whether immediate possession under SARFAESI Act or resolution under IBC yields maximum recovery. While SARFAESI enables direct asset enforcement, IBC provides systemic enterprise resolution.
2. Pre-Packaged Insolvency Framework (PPIRP)
Pre-packaged insolvency offers an expedited, cost-effective resolution mechanism for eligible corporate debtors, allowing secured lenders to negotiate restructuring plans prior to formal court filing.
Key Practice Takeaways
Pre-packaged insolvency reduces litigation timelines and preserves operational value.
Dual-track enforcement under SARFAESI and DRT remains effective for asset-backed loans.