Negotiating Corporate Debt Restructuring: The Role Of ADR Mechanisms Under India’s Insolvency Framework
- IJLLR Journal
- Dec 20, 2025
- 2 min read
Prashansa Jain, Ishita Jain & Vansh Chouhan, B.A.LL.B. (Hons.), Government New Law College, Indore.
ABSTRACT
The Insolvency & Bankruptcy Code (IBC) has completely upheavaltered the way business cases in India are resolved. The IBC is bringing a perspective on how business disputes can be resolved with a modern outlook. The complexities of the IBC have generated problems such as limiting because of legal disputes, delays, and loss of value when large organizations go belly-up. The implementation of a structured negotiation/mediation procedure, along with other alternatives for dispute resolution (ADR), has also gained popularity globally, as the mechanism has the advantage of providing protection on value, a consensus-driven resolution for businesses, and reducing delays. This research paper proposes to examine how the blend of different alternatives for dispute resolution with the law of bankruptcy in India might result in efficiency, along with increased productivity, in handling cases of corporate debt. This research investigates theoretical bases on which alternative dispute resolution is based, calculates how alternative dispute resolution might be fit within legal insolvency machinery, with findings from experiences abroad, such as Chapter 11 mediation systems in the United States of America, the culture of business restructuring in the United Kingdom, and the judicial mediation system in Singapore, providing valuable insights. The research on models in India, from cases involving Jet Airways, IL&FS, and DHFL, provides a perspective on how the existing mechanics in India might have been changed with a proper structure of alternative dispute resolution mechanisms in practice. This research article introduces how mediation, with a negotiated restructuring technique, might need to be introduced in pre-M efficiencies in India’s Insolvency & Bankruptcy Code (IBC). The research concludes with proposals on how the environment on the law, structure, and acceptance of alternative dispute resolution mechanisms in insolvency cases might need to be adjusted, providing a balancing perspective on business success, with a rightful perspective on securing value for different creditors.
