Open Access Research Article

INSOLVENCY RESOLUTION IN INDIA: CHALLENGES AND THE WAY FORWARD

Author(s):
BHAWNA PRIYA DARSHANI SUPRIYA AMAR
Journal IJLRA
ISSN 2582-6433
Access Open Access
Volume 3
Issue 8
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Abstract

Corporate insolvency is a problem, in a developing economy like India, where companies rely on credit, money and financial organizations to grow. When a business can't pay its debts, the problems can go beyond the company. Hurt people who lent money, workers, investors and the whole economy. To deal with these problems India brought in the Insolvency and Bankruptcy Code 2016 (IBC) which created a plan, for handling insolvency and helping healthy businesses stay alive. The Code has significantly changed India’s insolvency framework by introducing a process, for insolvency resolution. It clearly defines the roles of creditors and insolvency professionals. It also sets up adjudicating authorities to manage insolvency cases. Despite these improvements practical challenges still exist. There are delays in proceedings. The National Company Law Tribunal or NCLT is under pressure. It struggles to keep up with the growing number of cases. Another major issue is the difficulty in getting resolution plans. Sometimes these plans do not meet the needs of creditors. There are also concerns about the recovery of creditors’ claims. Often the amount recovered is much lower than expected. This article examines the framework that governs insolvency resolution, in India. It looks at decisions that have shaped the process. It identifies implementation challenges. It also suggests reforms to make the process more effective. These reforms could improve efficiency reduce delays and enhance creditor recovery. The goal is to strengthen the system so it works better for all parties involved. Keywords These are terms, in law: Corporate Insolvency, Insolvency and Bankruptcy Code, 2016 Corporate Insolvency Resolution Process, National Company Law Tribunal, Financial Creditors, Operational Creditors and Resolution Plan.

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Authors: BHAWNA PRIYA DARSHANI & SUPRIYA AMAR Registration ID: 1013600 | Published Paper ID: IJLRA13600 & IJLRA13601Approved ISSN: 2582-6433 | Country: Delhi, India

Article Information

INSOLVENCY RESOLUTION IN INDIA: CHALLENGES AND THE WAY FORWARD

Authors: BHAWNA PRIYA DARSHANI, SUPRIYA AMAR

  • Journal IJLRA
  • ISSN 2582-6433
  • Volume 3
  • Issue 8
Citation Download Paper Full Details Search on Google Search on Google Scholar

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International Journal for Legal Research and Analysis

  • AbbreviationIJLRA
  • ISSN2582-6433
  • AccessOpen Access
  • LicenseCC 4.0

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