Nowhere in the world do bankruptcy cases have a 330-day deadline, says bankruptcy board chief MS Sahoo

The bankruptcy of Essar Steel had put India’s nascent bankruptcy laws to test and the final word on that is out. In its latest verdict, the Supreme Court of India has said that banks can decide how to distribute the $6 billion from the sale of the company to ArcelorMittal, a multinational steel giant owned by billionaire steel tycoon Lakshmi Mittal.

This verdict from the Supreme Court also said that the bankruptcy courts are free to relax the 330-day deadline set by the law to resolve insolvency cases.

In an interview before the latest judgement from the Supreme Court, MS Sahoo, the Chairman of the Insolvency and Bankruptcy Board of India, told Business Insider that India’s laws indeed have a tight deadline. “The focus is that the process should be completed in a time bound manner, and please note that no where in the world is there this kind of timeline,” Sahoo said in an exclusive interview.


The entire transcript of the interview here.

You can watch the entire interview here:

Play iconA circle surrounding a triangle pointing right. It indicates, "this type of media can be played."“Nowhere in the world do bankruptcy cases have a 330-day deadline,” says bankruptcy board chief MS Sahoo