Evaluation Of The Resolution’s Timeline And Effectiveness As Specified In The Insolvency And Bankruptcy Code, 2016

Megha Mahesh, National Academy of Legal Studies and Research, Hyderabad (NALSAR)

ABSTRACT

The debt recovery model or approach has not worked for the Indian Economy which is evident from the failure of the previous experiments under the SICA, the RDDBFI Act and other applicable insolvency laws, the same has been analysed and relevant literature is available on the failure of the old laws. The birth of the present Insolvency and Bankruptcy regime is the result of this failure which was mostly to avoid the long-drawn legal battles and the delays in disposal of cases. So, it is imperative that the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC” or “the Code”) is effectively implemented in a time bound manner. There are procedural provisions and prescriptions in the Act which guide the resolution process itself but the implementation is yet to be seen. The resolution process has greater negative repercussions the longer it takes. The backlog of cases admitted under the Code and the protracted timescales are currently causing concern. This essay aims to assess the timeline of resolution in India under the new regime and how the delays can be mitigated using various case laws to reflect upon the jurisdictional view.

Keywords: time bound manner, delay, mitigation, corporate insolvency resolution process, factors responsible for delay, way-forward.