Corporate Rescue Vs. Creditor Rights: The Evolving Insolvency Regime In India After The Introduction Of IBC 2016

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Ida Patricia, LL.B. (Hons.), O.P. Jindal Global University

ABSTRACT

This paper explores the transformation in India’s Insolvency and Bankruptcy regime with the passage of the Insolvency and Bankruptcy Code 2016. Making a critical engagement with landmark judicial decisions especially Innoventive Industries, Mobilox Innovations, Essar Steel and Devas Multimedia cases its key site for its investigation, it scrutinizes the tension between corporate rescue and creditor rights. The research forms demonstratesthatalthoughtheIBChasexpedited resolutiontimeframesand enhanced creditor recoveries vis-a-vis earlier regimes, the challenge of balancing the interests of various stakeholders remains. This paper contends that despite judicial reluctance initially, the Indian courts have ultimately, taken direction in accord with the legislative policy of maximization of value in light of the creditor-friendly nature within a time-bound instance. The research also highlights continuing frictions between financial and operational creditors, and between secured and unsecured creditors. While this paper established that the IBC is considerably better than prior insolvency mechanisms, he said, it offered detailed examples of practical issues that need to be addressed and the need for a balance between corporate rescue and creditor protection.

Keywords: Corporate Insolvency, Bankruptcy Code 2016, Creditor Rights, Committee of Creditors, Financial Creditors, Operational Creditors, NCLT, Creditor-in-Control, Cross-Border Insolvency

CORPORATE RESCUE VS. CREDITOR RIGHTS- THE EVOLVING INSOLVENCY REGIME IN INDIA AFTER THE IN

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