Open AccessJourney Towards Recovery: Insolvency & Bankruptcy Code of India – A Mirage or a Milestone?
Author(s) -
Sunita Chaki,
Kshamta Chauhan
Publication year - 2019
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.c1001.1083s219
Subject(s) - bankruptcy , insolvency , milestone , legislature , remedial education , order (exchange) , business , finance , accounting , political science , law , history , archaeology
According to a report published by Bankruptcy Law Reforms Committee (BLRC) in Nov 2015, India is amongst those countries which take the longest time to resolve bankruptcy cases at the highest cost. For India, which has a very high concentration of promising entrepreneurs, a speedy resolution for failing corporates is a necessity to create a congenial environment for credit growth and investments in the economy. Addressing NPAs with appropriate recovery mechanisms is as vital as mitigating them at pre-remedial stage. With a brief on the existing recovery mechanisms, the present study comprehends the working of IBC and evaluates its performance since its inception along with a discussion on the limitations and challenges present in the mechanism. The study has also concluded that IBC has been able to give a positive impact; it however still needs to be invested with the power of enforceability and needs to be supplemented with a robust auxiliary system. It’s just been two years, how effective IBC will be in long term, will also depend on legislature and judiciary playing their entitled role judiciously