A Critical Analysis of the Insolvency and Bankruptcy Code through the Prism of Constitutional Morality

Written by: Navroop Kaur, LL.B (2nd Year) , School Of Law, Lovely Professional University, Punjab, India.

Abstract

To balance debtor protection and creditor interests while promoting economic growth, the bankruptcy and Bankruptcy Code, 2016 (IBC) represents a significant legislative attempt to streamline and consolidate bankruptcy resolution in India. Beyond its procedural usefulness, though, the IBC presents serious concerns about its conformity to constitutional values, especially the idea of constitutional morality, which is a framework that requires all laws and state actions to uphold the spirit of the Constitution in order to guarantee justice, equality, and fairness. This essay discovers the conflict between protecting the rights of stakeholders, such as employees, minority creditors, and small investors, and advancing corporate resolution by critically analyzing the IBC through the prism of constitutional morality. The study assesses whether the Code, in reality, preserves constitutional ideals or puts economic feasibility ahead of social justice by inspecting significant court rulings, legislative purpose, and scholarly criticisms. The study stresses the necessity of a well-balanced insolvency framework that balances equality and efficiency, reflecting the moral and legal principles embodied in the Indian Constitution.

Keywords: Insolvency and Bankruptcy Code, Constitutional Morality, Corporate Insolvency, Stakeholder Rights, Judicial Review, Economic Justice.

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Volume 2 | Issue 1