Bytes To Bankruptcies: Valuing Data As An Insolvency Asset In India’s Digital Age
- IJLLR Journal
- Jul 5
- 1 min read
Maanya Bhambal, OP Jindal Global University
ABSTRACT
In the era of the digital economy, data has emerged as an essential asset for contemporary businesses. As businesses expand and rely more on data- driven models, for consumer behavior analytics to algorithmic optimization, the valuation and treatment of data in insolvency is essential. But even as companies move toward data-intensive models, existing insolvency structures are still not well-suited to reflect the complexities of data ownership, transferability, and monetization.
This article examines the conceptual and legal foundations of considering data as an insolvency asset based on corporate law, data protection frameworks, and insolvency jurisprudence. It analyzes the extent to which traditional valuation techniques - such as the income approach, cost approach, and market approach - can be applied to data and addresses the conflict between asset maximization and right to privacy under laws such as India's Digital Personal Data Protection Act, 2023 and the EU's General Data Protection Regulation (GDPR). Finally, the essay contends for a balanced approach that acknowledges data as an asset in insolvency, ensuring that data protection obligations are met, and stakeholder interests are protected.
