Ease Of Doing Business & Ease Of Exit: An IBC Perspective

Kanika Balhara, Gujarat National Law University

Shreya Shetty, Gujarat National Law University

ABSTRACT

The introduction of Insolvency and Bankruptcy Code, 2016 was a watershed event. The Indian government unveiled a new insolvency and bankruptcy code in 2016 with the intention that it would speed up the process of insolvency recovery to under 330 days while it would simultaneously strengthen creditors' rights. The new law was eagerly awaited and anticipated to boost investors' confidence. Since the Code's adoption, a few legislative changes have been made to improve the procedures and advance its goals in line with new market realities. To facilitate the execution of procedures under the Code, the regulatory framework has also undergone a number of revisions. The Adjudicating Authority, the Appellate Authority, the High Courts, and the Supreme Court have all issued a number of important decisions and judgements that clarify various conceptual concerns, resolve controversial situations, and clear up grey areas. In India, the field of knowledge known as insolvency is now extensively developed. The present paper is a study about the role that the IBC plays while improving ease of doing business while at the same time by easing the process of making exits. This is an area of limited research and which could be a value addition through the research presented herewith.

Keywords: Insolvency And Bankruptcy Code, Corporate Insolvency Resolution Process (CIRP), Ease of Doing Business, Ease of Exit, Liquidation, Debt Restructuring Process