Corporate Insolvency Resolution Process In India: Present Status And Future Trends

Prof. (Dr.) Pradip Kumar Das, Professor in the Department of Law and Governance, Central University of South Bihar, Gaya

Devesh Kumar, Research Scholar in the Department of Law and Governance, Central University of South Bihar, Gaya

ABSTRACT

The Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) has tremendously reformed the landscape of corporate insolvency proceedings in India. The IBC has consolidated all fragmented insolvency laws into an integrated one in India, evolutionizing the resolution across businesses by enhancing creditors’ rights and moving toward a more rescue-oriented approach to resolving distressed corporations. Regulatory authorities, such as the IBBI, NCLT, and NCLAT, play a significant role in administering and adjudicating insolvency matters. They are critical to the operation and balance of the CIRP. Through an in-depth analysis of statutory provisions and case studies, this paper investigates the efficacy of the CIRP and how it defends the interests of several stakeholders, such as creditors, debtors, and shareholders. Judicial precedents have significantly influenced the interpretation of the IBC and underscore the dynamic nature of the CIRP and its evolution through judicial scrutiny. Moreover, the paper focuses on the necessity to constantly update the regulatory environment and legal framework to alleviate operational challenges, ensure protection to stakeholders, and align with international best practices. Suggestions to make the CIRP more effective include stricter implementation of the IBC, transparent approval processes, and a heavy-duty framework to deal with cross-border insolvency cases.