What is the Swiss Challenge method in IBC?

The Swiss Challenge method in IBC is a bidding process in which an interested party presents a bid to the auctioneer, who then calls for counter bids. The auctioneer then picks the best of the counter offers and checks if the original bidder can better this counter offer; if the original bidder does not, then the bid goes to the challenger bidder. This process was introduced in 2019 by the Insolvency and Bankruptcy Board of India to speed up resolutions. As per official data, it took an average of 560 days to resolve 143 cases in 2021-22, while the average time taken was 468 days to resolve 120 cases in 2020-21.