A Critical Examination Of The Insolvency And Bankruptcy Code: Going Back In Time
- IJLLR Journal
- Feb 28
- 1 min read
Mr. Gaurav Bharti, Assistant Professor, School of Law, IFTM University, Moradabad
Mr. Anuprash Rajat, Assistant Professor, School of Law, IFTM University, Moradabad
ABSTRACT
The Insolvency and Bankruptcy Code was passed in 2016 with the goal of establishing a single bankruptcy and insolvency law, thereby consolidating the previous framework. It should be mentioned that safeguarding creditors' interests is one of the Code's main goals. By moving away from the debtor- in-possession model, which was common in the previous regime, and towards one where both creditors and debtors operate within a framework of equity and fairness to all stakeholders in order to preserve the value of the Company, the Code attempted to address the various "illnesses" suffered by the insolvency laws in the previous regime. The Code is still being worked on, though, and was far from flawless. Additionally, the government has turned its attention to safeguarding economic interests in the wake of the COVID-19 pandemic. Despite appearing to have been enacted to shield businesses and promoters from no-fault liabilities brought on by the COVID- 19 epidemic, the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 seems to have more issues than solutions because of its ambiguities. Actually, it appears that the new ordinance signals a return to the previous paradigm, which was bad for the creditors' interests. Thus, the purpose of this essay is to discuss and evaluate the problems and uncertainties with particular reference to the 2020 Ordinance.
Keywords: Company, Insolvency, Bankruptcy, Corporate Debtor, Winding up
