Beyond The Statute: The Judicial Evolution Of The Insolvency And Bankruptcy Code
- IJLLR Journal
- Apr 25
- 2 min read
Kshitij Arora, Amity Law School, Amity University Noida, Uttar Pradesh
ABSTRACT
The Insolvency and Bankruptcy Code, 2016, or the IBC, 2016, represents a watershed moment in Indian corporate insolvency landscape, addressing the inefficiencies and fragmentation that plagued earlier legal frameworks such as the Companies Act, 1956, the SARFAESI Act, 2002, and the Sick Industrial Companies Act (SICA), 1985. This chapter critically examines the legislative evolution leading up to the enactment of the IBC, highlighting the systemic shortcomings of the pre-IBC regime and the need for a unified, time-bound resolution mechanism.
The chapter explores the key provisions and objectives of the IBC, which seeks to promote creditor-in-control processes, maximize asset value, and ensure efficient resolution or liquidation. It further maps the institutional framework established under the Code, including the roles of the National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT), the Insolvency and Bankruptcy Board of India (IBBI), and insolvency professionals (IPs), emphasizing their interlinked functions and growing importance.
Through a discussion of pivotal judicial precedents, including Jet Airways, Videocon Industries, and Shilpi Cable Technologies, the chapter investigates the judiciary's proactive role in developing insolvency jurisprudence, particularly in cross-border insolvency and group resolution. Additionally, it reviews significant amendments and policy developments, such as introducing the Pre-Packaged Insolvency Resolution Process (PPIRP), digital innovations, and sector-specific adjustments for MSMEs and real estate.
By weaving together legislative analysis, institutional design, and judicial contributions, the chapter offers a comprehensive understanding of the IBC's functioning. It concludes by asserting that while the IBC has considerably improved India's insolvency regime, continuous refinement through policy reform, institutional strengthening, and international alignment remains essential for sustained effectiveness.
Keywords: Insolvency and Bankruptcy Code (IBC); Corporate Insolvency; Institutional Framework; NCLT; Cross-Border Insolvency; Group Insolvency; Judicial Precedents; PPIRP; MSME Insolvency; Insolvency Law Reform; Creditor Rights.
