<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The Indian insolvency regime has undergone a historic change with the introduction of the Insolvency and Bankruptcy Code, 2016. This paper empirically analyses the effectiveness of the Code in the Indian economy. The paper also studies the insolvency frameworks that existed in India, the distinguishing features, and the legal framework of the Code. The analysis of the current status of the Indian insolvency regime with time series and cross-sectional data clarifies the non-performing assets trajectory, recovery rates, and time required under different recovery mechanisms, a summary of cases under the new Code and the status of India in the international insolvency systems. The empirical evidence of this study suggests that the Code is an improvement over its predecessors in terms of recovery rates, resolution of non-performing assets, and resolution costs. The Code should be subjected to necessary improvements to evolve and become a foolproof mechanism. Suggestions to that effect are offered in the final section.</p>
</abstract>

The Indian insolvency regime has undergone a historic change with the introduction of the Insolvency and Bankruptcy Code, 2016. This paper empirically analyses the effectiveness of the Code in the Indian economy. The paper also studies the insolvency frameworks that existed in India, the distinguishing features, and the legal framework of the Code. The analysis of the current status of the Indian insolvency regime with time series and cross-sectional data clarifies the non-performing assets trajectory, recovery rates, and time required under different recovery mechanisms, a summary of cases under the new Code and the status of India in the international insolvency systems. The empirical evidence of this study suggests that the Code is an improvement over its predecessors in terms of recovery rates, resolution of non-performing assets, and resolution costs. The Code should be subjected to necessary improvements to evolve and become a foolproof mechanism. Suggestions to that effect are offered in the final section.

On the Effectiveness of Insolvency and Bankruptcy Code, 2016: Empirical Evidence From India

Department of Statistics and Information Management

Law and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Indian insolvency regime has undergone a historic change with the introduction of the Insolvency and Bankruptcy Code, 2016. This paper empirically analyses...

On the Effectiveness of Insolvency and Bankruptcy Code, 2016: Empirical Evidence From India

Article Category: Research Article

Published Online: Dec 31, 2022

Page range: 20 - 34

DOI: https://doi.org/10.2478/law-2022-0003

Keywords
bankruptcy, insolvency, IBC 2016, India, liquidation, non-performing assets

© 2022 Abhirami A et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

On the Effectiveness of Insolvency and Bankruptcy Code, 2016: Empirical Evidence From India

Article Category: Research Article

Published Online: Dec 31, 2022

Page range: 20 - 34

DOI: https://doi.org/10.2478/law-2022-0003

Keywordsbankruptcy, insolvency, IBC 2016, India, liquidation, non-performing assets

© 2022 Abhirami A et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
bankruptcy, insolvency, IBC 2016, India, liquidation, non-performing assets