Overview of Insolvency and Bankruptcy Act, 2016

  • Kavya Mittal and Hadiya Khan
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  • Kavya Mittal

    Student at Law College Dehradun, Uttaranchal University, Dehradun, Uttarakhand, India

  • Hadiya Khan

    Assistant Professor at Law College Dehradun, Uttaranchal University, Dehradun, Uttarakhand, India

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The Ins0lvency and Bankruptcy Code was passed in 2016 with the goal of unifying the several laws pertaining to insolvency and bankruptcy under one comprehensive statute. It should be mentioned that safeguarding creditors' interests is one of the Code's main goals. The Verdict aimed to address the different "illnesses" that the previous regime's insolvency laws suffered from by moving away from the debtor-in-possession model and toward a model where creditors and debtors cooperate within a framework of equity and fairness to all stakeholders in order to protect the value of the company. The Code is still a work in progress therefore it wasn't flawless in every way. In addition, the government's attention has switched to safeguarding corporate interests in the wake of the Covid-19 outbreak. Nonetheless, it appears that the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 has been implemented with the Covid-19 epidemic, firms and promoters were intended to be shielded from no fault liability, but the legislation's ambiguities seem to create more questions than they solve. In fact, it appears that the new ordinance will return to the previous model, which was against the creditors' interests. Consequently, the goal of this study is to examine and evaluate the problems and uncertainties with particular regard to the 2020 Ordinance.




International Journal of Law Management and Humanities, Volume 7, Issue 3, Page 1395 - 1404

DOI: https://doij.org/10.10000/IJLMH.117621

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