Code Over Capital: Reimagining Data As An Asset Under India’s Insolvency Law
- IJLLR Journal
- Sep 24
- 1 min read
Aditya Chaturvedi, Symbiosis Law School, Noida
ABSTRACT
In the modern digital economy, data is no longer a peripheral by-product of online activity but a core commercial asset that drives revenue, innovation, and enterprise valuation. From user analytics and behavioural insights to AI training datasets and proprietary algorithms, data forms the backbone of contemporary business models. Yet, India’s insolvency regime, governed by the Insolvency and Bankruptcy Code, 2016, does not formally recognise data as a distinct or monetisable asset class. This omission creates a legal vacuum, particularly evident in recent tech insolvencies such as GoMechanic and the financial restructuring efforts surrounding Byju’s, where high-value data assets were neither properly valued nor protected during insolvency proceedings.
This paper examines the systemic risks posed by this gap, ranging from under-recovery by creditors to privacy violations and argues for urgent legislative and procedural reform. Drawing on comparative insights from the United States and the United Kingdom, and examining the implications of India’s Digital Personal Data Protection Act, 2023, it proposes a structured approach to recognising, preserving, and responsibly monetising data in the resolution and liquidation processes under Indian law. By reimagining the IBC to include digitally stored commercial data, the paper aims to align insolvency practice with the realities of a data-centric economy.
Keywords: Insolvency And Bankruptcy Code, Data as an Asset, Digital Economy, Tech Insolvencies, Intangible Assets, Digital Personal Data Protection Act.
