Comparative Analysis Of The Insolvency Resolution Models: Debtor-In-Possession & Creditor-In-Control In IBC

Yash Parekh, UnitedWorld School of Law, Karnavati University

ABSTRACT

The IBC has been developed a lot since its inception. Since then a lot of changes have been seen from the mode of resolution from Debtor-Based to Creditor-Based and other relevant changes. This following paper aims to identify the concepts of Insolvency and Bankruptcy Code of India with its history and how it was established under the given the lack of actual insolvency resolution processes. Following its understanding, the paper further looks into the current framework of insolvency resolution which is a Creditor-Friendly model. Moreover, it keeps undergoing changes which would be highlighted in the paper, that is, the introduction of a hybrid model of insolvency resolution called the PPIRP after the widespread negative effects caused by the Covid-19 Pandemic. Given the scenario in India, the paper further aims to derive a comparative analysis of the insolvency framework models of two prominent countries which has influenced India, that is, the United Kingdom and the United States. Owing to the given analysis the paper further highlights certain shortcomings which need to be addressed for a better efficient restructuring of insolvent entities in India. It concludes with the author trying to highlight certain shortcomings of the code with an approach to solve them through the comparative analysis.

Keywords: CIRP, Insolvency Framework Models, Hybrid Framework, PPIRP