Insolvency and Bankruptcy Code, 2016: A Paradigm Shift within Insolvency Laws in India

Authors

  • ANKEETA GUPTA

DOI:

https://doi.org/10.22439/cjas.v36i2.5650

Keywords:

insolvency, bankruptcy, sick companies, insolvency professionals, information utilities, committee of creditors, financial creditors, operational creditors

Abstract

delivery and availability in India in light of the changes brought about by the Insolvency and Bankruptcy Code, 2016. The introduction of the Code is purported to resolve the issues within the credit ecosystem by identifying correctly all the stakeholders, most importantly the creditors and the debtors, resolving and settling non-performing assets, creating a robust mechanism for settling credit-related disputes, reducing creditor distrust and ensuring continuance of functioning of companies rather than being wound up for non-payment of debts.
While the Code promises to be a game changer, there exist various challenges that need to be addressed as the success of the Code is dependent on the manner in which its provisions are implemented, especially those pertaining to the strict timelines with parties seeking excessive discretionary indulgence from the adjudicatory authorities. Further, the challenges include impact of differential treatment meted out to the creditors, the committee of creditors being ordained with considerable powers over the fate of the corporate debtor, and the insolvency professionals being allowed to run the entities without much accountability and capability has resulted in an increased number of disputes. The legal, logical and procedural hurdles thus mentioned will need to be addressed in the most amicable manner within the foreseeable future.

Author Biography

ANKEETA GUPTA

ANKEETA GUPTA is an LLM from the National Law School of India University, Bangalore. She worked with the Faculty of Law University of Delhi, India, as an assistant professor and is pursuing a PhD from the same institution. Ankeeta is an avid researcher who undertakes work in the field of corporate law and is currently working on the Insolvency and Bankruptcy Law of India passed in 2016.

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Published

2019-02-15

Issue

Vol. 36 No. 2 (2018)

Section

Articles