INSOLVANCY AND BANKRUPTCY LAW

Abstract

The Insolvency and Bankruptcy Code, 2016 (IBC) represents a transformative reform in India's insolvency framework, consolidating previously fragmented laws into a comprehensive and timebound mechanism for insolvency resolution and liquidation. Enacted with the objective of maximizing the value of assets, promoting entrepreneurship, ensuring the availability of credit, and balancing the interests of all stakeholders, the Code has significantly altered the landscape of corporate insolvency in India. Prior to the IBC, insolvency proceedings were characterized by procedural delays, multiple adjudicatory forums, and low recovery rates, which adversely affected economic growth and investor confidence.This study examines the conceptual foundations, institutional framework, and operational mechanisms of the Insolvency and Bankruptcy Code, 2016. It explores the roles of key stakeholders, including financial creditors, operational creditors, insolvency professionals, adjudicating authorities, and the Committee of Creditors, while analyzing the Corporate Insolvency Resolution Process (CIRP) as the central pillar of the insolvency regime. The research further evaluates significant judicial pronouncements that have shaped the interpretation and implementation of the Code, particularly concerning the principles of value maximization, creditor autonomy, and corporate revival.Additionally, the study highlights emerging challenges within the insolvency ecosystem, including delays in resolution, treatment of operational creditors, cross-border insolvency issues, and the effectiveness of the liquidation framework. Through a doctrinal analysis of statutory provisions, case law, and regulatory developments, the paper assesses the extent to which the IBC has achieved its intended objectives and identifies areas requiring further reform.The study concludes that while the IBC has substantially improved India's insolvency resolution framework and strengthened credit discipline, continuous legislative refinement and institutional strengthening remain essential to ensure efficiency, predictability, and long-term economic stability. The Code thus stands as one of the most significant legal and economic reforms in contemporary India, with far-reaching implications for corporate governance, financial markets, and commercial jurisprudence. Keywords: Insolvency and Bankruptcy Code, Corporate Insolvency Resolution Process, Creditors, Corporate Debtor, Liquidation, Resolution Plan, NCLT, Insolvency Law, Commercial Jurisprudence, Corporate Governance.