A Switchover In India's Insolvency Laws: The Insolvency And Bankruptcy Code Of 2016

Akashdeep Sengupta, St. Xavier's University, Kolkata

ABSTRACT

The Insolvency and Bankruptcy Code (IBC), which was adopted in 2016, was passed by the Indian Parliament. Only the section on corporate insolvency will be announced by the government. For those who have personal guarantors as well as business debt, the section on personal insolvency is anticipated to be made known. By accurately identifying all of the stakeholders, most importantly the creditors and the debtors, resolving and settling non-performing assets, creating a strong mechanism for resolving credit-related disputes, lowering creditor mistrust, and ensuring that businesses continue to operate rather than being shut down for failing to pay debts, the introduction of the Code is intended to address the problems within the credit ecosystem. This paper provides a description of the Indian credit market and makes a case for the necessity of personal insolvency legislation. It gives a succinct summary of the IBC's personal insolvency provisions. In light of the fact that the success of the IBC depends on both the structure of the supporting legislation and the development of the institutional infrastructure, it offers recommendations on policy issues that must be resolved before the law can be effectively implemented.