Comparative Analysis Of India’s Ibbi Amendments And Global Best Practices In Corporate Insolvency
- IJLLR Journal
- Jul 18
- 1 min read
Anshika Jain & Shreyash Deshpande, BBA LLB (Hons), Bennett University, The Times Group
ABSTRACT
The legal and institutional structure of corporate insolvency has an important bearing on the economic resilience of a country, investor sentiment, and the credit environment. India's regime of insolvency has witnessed radical change post-the Insolvency and Bankruptcy Code, 2016 (IBC)1, which attempted to consolidate disparate legislation into one seamless system with time-bound resolution taking precedence over liquidation. At the center of this system is the Insolvency and Bankruptcy Board of India (IBBI), which acts as the regulator tasked with standard-setting, oversight, and issuing amendments to the corporate insolvency process. Over the past few years, the IBBI has made a number of significant amendments to increase efficiency, improve recoveries for creditors, and decrease systemic delays. These cover simplifying procedural timeframes, bringing in the pre- packaged insolvency resolution process (PIRP) for MSMEs, strengthening the role and responsibility of resolution professionals, and enhancing transparency in resolution plans2.
Yet, the development of India's insolvency law does not take place in a vacuum. With growing financial market integration and the rise in cross- border trade and investment, India's legal reform efforts need to be assessed in relation to best international practices. Advanced insolvency jurisdictions like the United States3, the United Kingdom4 and the European Union5 provide effective models of advanced insolvency handling. These systems focus on tenets like debtor-in-possession financing, early restructuring, preservation of viable businesses, and protection of stakeholder interests using class-based voting schemes and court-sanctioned restructuring plans.
