When the Insolvency and Bankruptcy Code Turns into an Instrument of Business Pressure Tactics

Introduction In certain circumstances, there is a peculiar risk in giving a hammer to a person who needs a scalpel. The Insolvency and Bankruptcy Code, 2016, intended as a surgical scalpel to help resolve financial distress issues, has repeatedly been used as a heavy hammer of commercial pressure. Recently, in a case decided in May 2026, namely Dhanlaxmi Bank Ltd. v. Mohammed Javed Sultan & Ors., the Supreme Court of India was yet again forced to trace that line which does not seem to need to...