Corporate Insolvency Resolution under the Insolvency and Bankruptcy Code, 2016 - A New Regime

Abstract

Before independence, the Indian economy was basically dependent upon agriculture and industrialization gained importance mainly in the post independence era. But, the dismal story is that since inception, industrialization in India has suffered from varying degrees of sickness in both public and private
sectors, and the Indian Government has been attempting to enact a number of legislations from time to time in order to ensure a healthy and favorable industrial environment and reduce the menace of industrial sickness from the economy to the extent possible. As a result, the legal framework for corporate insolvency resolution in India has passed through a series of enactments, along with a number of legislative and administrative changes, but surprisingly it did not have a comprehensive one, until the introduction of the “Insolvency and Bankruptcy Code, 2016”, on 28th May, 2016. The present paper, therefore, tries to briefly narrate India’s journey towards a single and comprehensive framework for corporate insolvency resolution thereby identifying the loopholes of the earlier
system, if any, and exploring the impact of the new framework relating to corporate insolvency resolution in India, in recent times.