A Critical Examination of the Philosophical Foundations of the Insolvency and Bankruptcy Code, 2016: The Transition from Debtor to Creditor Perspective

Written by: Anopaishe Violet Maposa, B.A.LL.B( 4^th Year ) , Lovely Professional University

Abstract

The Insolvency and Bankruptcy Code 2016 was introduced in India to resolve the problem in companies that were unable to pay their debts on time. Before the IBC, there were numerous slow legal processes for handling insolvency, which led to delays in corporate matters. This research paper examines the effectiveness of the IBC in improving the process of dealing with insolvent companies.

The paper examines the importance of IBC, including its role in facilitating faster resolution, creditor involvement, and the function of resolution professionals. It also discusses important court cases like Essar Steel and Swiss Ribbons, which have helped shape how the law is applied. The study highlights both the positive changes brought by the IBC and the challenges that still exist, such as delays in the National Company Law Tribunal (NCLT) and misuse of the law by some creditors.

 By comparing India’s IBC with insolvency laws in other countries, this paper also shows what India can learn to improve its system. Overall, the research finds that while the IBC has made good progress, there is still a need for better implementation and updates to the law.

Keywords: Insolvency and Bankruptcy Code, Liquidation, Corporate Insolvency, Creditor Rights, Bankruptcy Law

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Volume 2 | Issue 1