A Decade Of The Insolvency And Bankruptcy Code, 2016: Reflections On Speed, Value Maximisation, And Stakeholder Protection

Written by: Vyshnavi Epari, B.A.LL.B (4^th Year ), Lovely Professional University

Abstract

The Insolvency and Bankruptcy Code, 2016 (IBC) is among the most radical legal changes in the Indian economic regulation that have been introduced in a decade since its enactment. The Code was developed in the middle of a crisis of non-performing assets (NPAs) and disjointed insolvency systems, with a view to ensuring three fundamental purposes, which included speed, value maximisation and stakeholder protection. This paper is an assessment of how much the IBC has achieved these legislative pledges. It examines the performance in practice, judicial interpretation, institutional evolution, and comparative experiences of the international regimes of insolvency. As can be seen in the discussion, the IBC has greatly enhanced creditor confidence and discipline in the resolution process yet it is perpetually battling with the evils of delay, fairness, and consistency. The paper ends with some policy recommendations on how the insolvency jurisprudence in India could be enhanced in the coming decade to be more predictable, inclusive, and sustainable.

Keywords: Insolvency and Bankruptcy Code, Value Maximisation, Speed of Resolution, Stakeholder Protection, Judicial Intervention, Creditor-in-Control, Insolvency Law Reform, India.

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