Effectiveness Of The Insolvency And Bankruptcy Code IBC 2016 In India

Written by: Tadiwa Prudence Mudzamiri, 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 many  slow legal processes to handle insolvency, which led to delays in corporates This research paper studies how effective the IBC has been in improving the process of dealing with insolvent companies.

The paper looks at the importance ofIBC, such as faster resolution, involvement of the creditors, and the role 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