Paradigm Shift In The Legal Regime: The Evolution And Impact Of Insolvency And Bankruptcy Law

Paradigm Shift In The Legal Regime: The Evolution And Impact Of Insolvency And Bankruptcy Law In India

Sukhmani Kaur, LL.B, Campus Law Centre, University of Delhi

ABSTRACT

The Insolvency and Bankruptcy Code, 2016 (IBC) has been a significant development in the insolvency law in India, aiming to provide a transparent, efficient, and effective resolution process for insolvent companies. In India, the Insolvency and Bankruptcy law has undergone a significant transformation with the introduction IBC, resulting in a dynamic legal framework. This has led to the faster resolution of distressed assets and has created opportunities for businesses to be acquired as going concerns. The legal regime has undergone a paradigm shift and is currently exploring new horizons. However, the implementation of the IBC has faced several critiques. This article explores the history and landmark cases of the IBC and provides an analysis of its impact on stakeholders. The article highlights the critiques of the IBC, such as delays in the resolution process, lack of clarity on the rights of stakeholders, impact on small and medium-sized enterprises, lack of infrastructure and capacity, and impact on the banking sector. It concludes that it is crucial to address these critiques to ensure that the IBC continues to evolve and improve over time.