Insolvency and Bankruptcy: Consequences of Pandemic in India

Economic laws are inherently empirical and change throughout time as a result of experimentation. No different, the 2016 Insolvency and Bankruptcy Code (Code) has been a road under construction for legitimate reasons. It planned to start with simple, standard procedures but anticipated quick course changes to keep the business and economy running smoothly. India's economy has suffered greatly from COVID-19's effects, much like the rest of the world. Several businesses saw declining top and bottom lines as a result of the supply chain interruptions and demand contraction brought on by COVID-19 and the ensuing state-wide lockdown, as well as some of them perhaps failing to make their debt payments. Another experiment was necessary for this unusual condition, one that required choosing between two opposing courses of action: suspending the Code's activities or keeping them going as normal. This article examines choices taken by the State and the efforts/responses with regard to I&B laws, during the course of the pandemic as well its aftereffects. This paper first discusses the Insolvency and Bankruptcy Code, 2016 along with its objectives. This is followed by an overview of covid-19, along with a short examination of its effects. Next, the response of the State during the pandemic, which is followed by protective measures taken and a short examination of the moratorium period. Next, a short discussion on the effects of the response and finally, concludes by presenting the personal opinions of the authors about the response and prevalent current scenario.