The code of conduct, stipulating certain dos and don’ts for insolvency professionals, is a “non-negotiable ethical anchor” and that a half of the Insolvency and Bankruptcy Code’s (IBC’s) success hinges on how effectively they discharge their duties, she said.
Mukerjee was speaking at an event, organised by the Indian Institute of Corporate Affairs here.
“You have to exhaust each and every single avenue, engage with every potential resolution applicant…to revive the entity. You don’t just have to manage stress, you have to fight for (the stressed company’s) survival,” she said.
While the committee of creditors exercises the ultimate commercial wisdom in rescuing a company, the professionals are actually holding the steering wheel, she said. There were 4,656 insolvency professionals, including 98 entities, as of March 2026.
As the latest set of IBC amendments renews the government’s bid to expedite resolution, the secretary exhorted the insolvency professionals to strictly maintain timelines, she said. This will also help adjudicating and appellate authorities to dispose of cases on time.
Liquidation, she underscored, must be the last resort as “jobs are permanently lost, supply chains get broken and economic value evaporates”.As of March 2026, the ten-year-old IBC facilitated the resolution of 1,419 companies, fetching creditors Rs 4.32 lakh crore, with recovery touching 30.6% of their admitted claims. Experts have blamed inordinate delay in the admission of cases and subsequent resolution for the subdued recovery.
However, the recovery by creditors goes up sharply to 94.6% of the fair value of companies, worked out at the time of admission, based on the data available for 1,298 companies. It was also 166.9% of the liquidation value of the stressed firms.
As of March, 78% of the 1,885 ongoing cases, where resolution is being pursued, have exceeded 270 days. The IBC allows up to 270 days for resolution (330 days including litigation time).
Mukerjee underscored three non-negotiables for insolvency professionals–integrity and objectivity; independence and impartiality; and professional competence.
“Trust is your only true currency. You will be handed control of companies worth hundreds of thousands of crores. There are people, jobs, families involved,” Mukerjee said.
“Temptations will be high, but the first schedule of the IBC Code of Conduct is your anchor, shield and lodestar.”