Creditor Protection In Corporate Restructuring: A Comparative Study Of India, U.S., And U.K.
- IJLLR Journal
- Aug 29
- 1 min read
Vijeta Mishra, B.A. LL.B.(H), Amity University, Noida, Uttar Pradesh
Arpita Singh, B.A. LL.B.(H), Amity University, Noida, Uttar Pradesh
ABSTRACT
Insolvency law has emerged as a crucial pillar in safeguarding financial stability, ensuring the continuity of viable enterprises, and protecting creditor rights. The evolution of such frameworks has gained prominence in the aftermath of recurrent global financial shocks, with corporate insolvency becoming a focal point of economic policy. In India, the enactment of the Insolvency and Bankruptcy Code (IBC), 2016, brought about a paradigm shift in the insolvency regime, replacing a disjointed and archaic legal structure with a unified, timebound, creditor-centric system. This research paper explores the concept of creditor protection in the context of large-scale corporate restructuring under the IBC, drawing comparative insights from the United States’ Chapter 11 Bankruptcy Code and the United Kingdom’s Administration framework under the Insolvency Act 1986.
Using a doctrinal and comparative legal methodology, supplemented with landmark judicial decisions and case studies, the paper evaluates how different jurisdictions structure creditor rights and balance them with debtor interests. It further analyses the systemic strengths and inherent limitations of the Indian insolvency regime in areas such as interim finance, cross-border insolvency, and minority creditor protection. Key recommendations are provided to fortify creditor protection through legislative and institutional reforms. By engaging in a comparative analysis, this study aims to contribute to the ongoing policy discourse on enhancing insolvency resolution mechanisms and aligning India’s framework with global best practices.
Keywords: Insolvency and Bankruptcy Code; Creditor Protection; Corporate Restructuring; Chapter 11; U.K. Administration; Committee of Creditors; DIP Financing; Cross-Border Insolvency; Insolvency Law Reform.
