Abstract

There was a ray of optimism for creditors with the advent of the IBC; for numerous eons, India had numerous laws overlying with one other, resulting in unproductive and overdue debt recovery. The IBC provided comprehensive and stable insolvency legislation that applied to all corporations, limited liability partnerships, partnership enterprises, and individuals. It permits creditors to select a "insolvency resolution process" to analyse the debtor's firm and determine whether it should be rescued or liquidated.' To support an effective and efficient bankruptcy resolution process or liquidation, the bankruptcy and Bankruptcy Code established a new framework comprised of insolvency resolution experts and a new insolvency regulator, the Insolvency and Bankruptcy Board of India.” Most crucially, the Code has established a 180-day deadline for completing an insolvency resolution process. It further states that beyond the 180-day limit, only one extension of 90 days is permissible. However, the 2019 Amendment mandates that the Corporate bankruptcy Resolution Process be completed within 330 days of the bankruptcy commencement date (including all or any extensions granted, as well as any litigations and related legal actions). Furthermore, for an ongoing CIRP, if the 330-day overall deadline has already been violated at the time the Amendment takes effect, the Amendment provides for an extra 90-day relaxation as a transitional measure. Insolvency occurs when an individual or organisation is unable to meet its financial commitments to its lender or lenders when the debt comes due. Insolvency can be caused by a variety of circumstances, including inadequate cash management, increased spending, or decreasing income. Despite the fact that insolvency and bankruptcy are synonymous, “Bankruptcy is not the same as insolvency; bankruptcy occurs when a judge has determined insolvency and issued legal orders to remedy it. A bankruptcy occurs when an individual declares himself insolvent and goes to court. When a bankruptcy is declared, the court is responsible for liquidating the insolvent's assets and paying creditors. According to the studies, IBC 2016 is an appropriate action implemented by the IBBI for the resurrection or liquidation of sick enterprises. It is a timebound technique that aids in the quick recovery of debts.” However, several research failed to reveal the rationale and experts' perspectives on the IBC's effective implementation. As a result, the current study attempted to investigate expert opinion and uncover vulnerabilities in the current Code, which is said to be a robust design.

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