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Insolvency law is significantly impacted by the parties involved in the insolvency proceedings. Unfortunately, certain stakeholders may misuse the insolvency framework to benefit themselves. To prevent the abuse of insolvency law there is the doctrine of Clean Hands in Insolvency Law. By applying this doctrine, courts can prevent individuals from using insolvency laws to gain […]
Having a clear and efficient insolvency process reduces the perceived risk for foreign investors, as they are more confident about recovering their investments if a company they invest in faces financial difficulties. The Insolvency and Bankruptcy Code, 2016 (IBC) streamlines the insolvency process, leading to a quicker resolution, which positively impacts investor sentiment and encourages […]
When a company becomes insolvent, there are several parties involved in the resolution process, not only the corporate debtor and its creditors. Understanding equitable treatment under insolvency law is essential, as it ensures a fair distribution of assets and protects the interests of all stakeholders. The Insolvency and Bankruptcy Code, 2016 (IBC) provides the framework […]
Fraudulent practices may impede economic growth, exacerbate income inequality, increase the cost of government services, and lower trust in government, among other consequences. Public sector entities need to adopt advanced CIRP Fraud Detection methods as they allow them to safeguard the general public, maintain their trust, improve the efficiency of their operations, and stay ahead […]
Financial struggles and environmental degradation are at the forefront of global concerns and introduced “green insolvency”. Traditionally, the resolution process focuses on financial considerations and ignores their effects on the environment. Therefore, green insolvency includes integrating environmental considerations and sustainability principles into the resolution process. The Need for Sustainability in Corporate Restructuring Business sustainability refers […]
The Insolvency and Bankruptcy Code, 2016 (the IBC) came into effect with several objectives, such as maximising the value of debtor’s assets, promoting entrepreneurship, ensuring timely resolution of cases, and balancing the interests of all stakeholders. By fulfilling its objectives, the IBC on Economic Growth contributes of India. The Role of IBC on Economic Growth […]
When one company within a group becomes insolvent, its financial troubles can affect group companies due to shared financial obligations, making separate insolvency proceedings inefficient. Most insolvency laws are designed to handle individual companies, including the Insolvency and Bankruptcy Code, 2016 (the IBC). Therefore, a dedicated Need for Group Insolvency framework is needed to effectively […]
With the increase in international trade and globalisation, it is imperative to have a well-structured cross-border legal framework for cooperative resolution of insolvency-related disputes is a necessity. In India, the insolvency framework is designed to protect stakeholders, encourage economic recovery, and shape how insolvency is managed and resolved. This article explores the role of Public […]
The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate debtors in a time-bound manner for the maximisation of the value of assets of such debtors. Its primary function is to provide a solution to the companies in financial distress. However, there […]
When a company enters insolvency proceedings, the role of the director significantly shifts. The directors of the company are expected during the financial difficulty period to act in the bona fide interests of the creditors and simultaneously ensure that adequate steps are taken to keep the company off insolvency. We will look into a directors […]
