Corporate Insolvency Laws in India | Original Article

ABSTRACT:

Global economic slowdown, credit crunch, and decrease in cross-border loans, trade financing, and FDI all followed the 2008 financial crisis, which had a negative impact on businesses all around the world. Commercial bankruptcy rules are needed to effectively liquidate and reorganize unviable enterprises and optimize the entire value of proceeds obtained by creditors, owners, workers, or any other stakeholder. This is why there has been an increase in corporate insolvencies. Credit markets in India are in a distressed situation because to India's poor insolvency process, considerable inefficiencies, and systemic exploitation. With a focus on creditor-driven bankruptcy resolution, the Code promises sweeping changes. Early detection and maximization of the value of bankrupt businesses are the goals of this program. Bilateral and reciprocal agreements with other nations are also part of the Code's provisions for dealing with cross-border bankruptcy.