THE SIGNIFICANCE OF THE CORPORATE INSOLVENCY RESOLUTION PROCESS IN SHAPING INDIA’S SOCIO-ECONOMIC DEVELOPMENT: A LEGAL AND REGULATORY REVIEW
DOI:
https://doi.org/10.29121/shodhkosh.v5.i5.2024.2050Keywords:
Significance, Corporate, Resolution, Socio-Economic, LegalAbstract [English]
This article underscores the crucial role of regulatory bodies in insolvency processes, providing the audience with a comprehensive understanding of their functions. They play a significant part in creating a conducive environment for restructuring viable businesses and rehabilitation. The Corporate Insolvency Resolution Process (CIRP) implementation under the Insolvency and Bankruptcy Code (IBC), 2016, has transformed the corporate insolvency regime of India and has affected the economic growth, wealth distribution, employment stability and ultimately socio-economic development of India. This paper evaluates the CIRP by scrutinising the legislative provisions and analysing case studies of various distressed companies to determine how far it has facilitated corporate distress resolution and protected the interests of its stakeholders. It focuses on the practical implementation of the CIRP and identifies the challenges in the CIRP, like judicial interpretation, procedural delays, and regulatory ambiguities. Ultimately, it provides suggestions for improving the efficiency and efficacy of insolvency resolution in India to promote sustainable socio-economic development, reassuring the audience of the regulatory bodies’ commitment to the process.
References
Arora, Dakshita. (2021). Cross Border Insolvency in India and the Adoption of UNCITRAL Model Law: A Comprehensive Analysis. Indian Journal of Law and Legal Research, 2(2), 1-10.
Ibid.
Ease of Doing Business rankings. (2020). In World Bank.https://archive.doingbusiness.org/en/rankings
Naphade, Nipun Ninad. (2022). NCLT’s Judicial Inference: Hurdle to the Commercial Wisdom of Committee of Creditors under the IBC. RGNUL Financial and Mercantile Law Review (RFMLR), 9(1), 94-125.
Ibid.
Ibid.
Handa, Ankit. (2020). An Analysis of the Corporate Insolvency Resolution Process as a Route for Acquisitions in India. International Insolvency Review, 29(2), 234-253. DOI: https://doi.org/10.1002/iir.1380
Zhao, Jingchen. (2017). Promoting More Socially Responsible Corporations through Corporate Law Regulatory Framework. Legal Studies, 37(1), 103-136. DOI: https://doi.org/10.1111/lest.12140
The Insolvency and Bankruptcy Code, 2016, Section 3(8) defines “corporate debtor” as a corporate person who owes a debt to any person.
The Insolvency and Bankruptcy Code, 2016, Section 3(10) defines “creditor” as any person to whom a debt is owed and includes a financial creditor, an operational creditor, a secured creditor, an unsecured creditor and a decree-holder.
The Insolvency and Bankruptcy Code, 2016, Section 3(19) defines “insolvency professional” as a person enrolled under section 206 with an insolvency professional agency as its member and registered with the Board as an insolvency professional under section 207.
Under Section 21 of the Insolvency and Bankruptcy Code, 2016, the interim resolution professional constituted a committee of creditors comprising all financial creditors of the corporate debtor.
Ibid, Section 6.
Ibid, Section 13.
Ibid, Section 21.
Ibid, Section 22.
Ibid, Section 23.
Ibid, Section 30.
Ibid, Section 31 and 33.
Ibid, Section 188.
Ibid, Section 60 and 61.
Khatri, N. (2020). Role of Adjudicating Authority in Approving/Rejecting Insolvency Resolution Plans with Global Practices. International Journal of Law Management & Humanities, 3, 1445-1454.
Linna, T. (2019). Insolvency Proceedings from Sustainability Perspective. International Insolvency Review, 28(2), 210-232. DOI: https://doi.org/10.1002/iir.1345
Ibid.
Hishikar, Saket, A Socioeconomic History of Bankruptcy & Insolvency Laws in India (January 31, 2023). http://dx.doi.org/10.2139/ssrn.4343671 DOI: https://doi.org/10.2139/ssrn.4343671
Saini, P. (2022). Efficient Corporate Governance in the Aftermath of Corporate Insolvency Resolution Process. International Journal of Law Management & Humanities, 5, 1153-[cix].
Ibid.
Ibid.
Shrivastava, Priyanshu. (2022). Code of Conduct for CoC: Death Knell for CIRP. Journal on Governance, 5(1), 97-110.
SCC OnLine NCLAT 552.
SCC OnLine NCLAT 1932.
SCC OnLine SC 841.
SCC OnLine Bom 7825.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Devesh Kumar, Pradip Kumar Das
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
