The Insolvency & Bankruptcy Code, 2016 and its Teething Problems
| DOI | 10.1177/2277401720160108 |
| Author | Jasper Vikas George |
| Published date | 01 September 2016 |
| Date | 01 September 2016 |
| Subject Matter | Article |
THE INSOLVENCY & BANKRUPTCY CODE, 2016 AND
ITS TEETHING PROBLEMS
Jasper Vikas George*
The present article is an attempt to look into the new insolvency
regime, which is created with the purpose of strictly regulating
insolvency in India, as the earlier laws, such as SICA, which
was conned to industrial companies, were unable to control the
same. The consolidation of the entire insolvency regime under the
one Code is a daunting task, because, on the one hand, the Code
has to provide eective and quick measures to check Corporate
Insolvency in particular along with other types of Insolvency and
on the other hand have to maintain the balance between the rights
of the corporate debtors and of the creditors.
The Sick Industrial Companies (Special Provisions) Act 1985 was unable to
check the time specic insolvency of the corporate entities, and therefore, to check
the same and to consolidate all sorts of insolvency related matters, the Insolvency
and Bankruptcy Code, 2016 (The Code) was brought into eect from 1stDecember
2016, which though deals with various aspects of insolvencies and recoveries, has
a signicantly special focus on all sorts of corporate insolvencies. It is indeed a
historic development for a country like India, which has for the rst time, post-
independence, seen a historic move wherein all the issues of nancial distress are
brought under the same roof and are to be captured through a single Code.1 The
Code is out to provide quick insolvency resolutions so that the economy should
grow rapidly and public funds are not blocked and keep circulating in order to
promote more business. The very objective of the enactment of the Code is very
sound, but time will only tell whether the Code is actually going to deliver towards
its objective or not.
* Assistant Professor, National Law University Delhi.
1 The Insolvency & Bankruptcy Code, 2016.
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