Open Access Research Article
BANKRUPTCY OF THE IMMUNE: SOVEREIGNS, GOVERNMENT DEPARTMENTS, AND THE STRUCTURED DEBT RELIEF
Abstract
Abstract
The present research paper goes into
the details of the way countries manage insolvency and identifies gaps in the
international and local systems, in particular, the Insolvency and Bankruptcy
Code, 2016, in India. It is the absolute power of countries, or sovereigns; you
cannot really, as you can with a common debtor, take them to court. There are
no such international legal norms, which allow a country to go bankrupt.
Countries, therefore, depend upon ad hoc solutions, such as Paris Club
Negotiation, IMF bailouts and contract-based solutions (such as collective
action clause or pari passu clauses).
The history of defaults, including those of France and Argentina,
provides historical examples of crises that recur and are solved without
hierarchies of creditors, or any discharge or the supervision of the judiciary,
which is contrary to the principle of pacta sunt servanda and is being invoked
on the basis of necessities and human rights.
Core gaps addressed, First, we do not have a clear regime of administering
sovereign insolvency. There have been floating ideas, and yet no one had ever
finished the implementation. Second, sovereign immunity shields essential state
operations, defence, state services, so entities are safeguarded. In the case
of immunity in bodies no formal insolvency process or liquidation, debt
problems are resolved by negotiating, arbitrating or collecting statutory dues,
or restructuring. The paper suggests a combination of the two, having an international
framework of law that respects sovereign immunity, fair allocation of losses on
behavior and a reward of good behavior.
Published Paper
Author Details
Authors: SOUMIT NATH Registration ID: 1013262 | Published Paper ID: IJLRA13262Year: Oct-2026 | Volume: 3 | Issue: 7Approved ISSN: 2582-6433 | Country: Delhi, IndiaPage No.: 188-207
Article Information
BANKRUPTCY OF THE IMMUNE: SOVEREIGNS, GOVERNMENT DEPARTMENTS, AND THE STRUCTURED DEBT RELIEF
Authors: SOUMIT NATH
- Journal IJLRA
- ISSN 2582-6433
- Volume 3
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- AbbreviationIJLRA
- ISSN2582-6433
- AccessOpen Access
- LicenseCC 4.0
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