Drifts in banking business and deepening losses amidst the insolvency and bankruptcy code, 2016

Abstract

When the Insolvency and Bankruptcy Code, 2016 (IBC) was passed in May 2016, the legal framework for insolvency resolution in India underwent a structural change. IBC proposes a paradigm shift from the existing “Debtor in possession” to a “Creditor in control” regime. It aims at consolidating all existing insolvency-related laws as well as amending multiple legislation, including the Companies Act, 2013, and has an overriding effect on all other laws relating to insolvency and bankruptcy. The code aims to resolve insolvencies in a strict time-bound manner.