Ruling the Roost: The Shift from Debtor Rights to Creditor Rights in India's Insolvency and Bankruptcy Code

Author Reg. ID: TIJER_102627

Published Paper Id: TIJER2302102

Published In: Volume 10 Issue 2, February-2023

Abstract: The Insolvency and Bankruptcy Code (IBC) 2016 introduced a significant shift from debtor right to creditor right in India's insolvency laws. This article provides an overview of this shift, its implications, and the challenges it poses. After a brief historical background on India's insolvency laws and the need for reform, the article explains the key provisions and objectives of the IBC 2016. It then delves into the shift from debtor right to creditor right, which is driven by various factors such as the need to balance the interests of stakeholders and promote efficient resolution of distressed assets. The article examines the impact of the shift on secured and unsecured creditors, debtor obligations and liabilities, and the role of the Committee of Creditors. While the shift to creditor right has been lauded for empowering creditors and improving recovery rates, it also poses several challenges and criticisms. The article discusses some of these, including the potential negative impact on small and medium-sized enterprises, the risk of misuse or abuse by creditors, and the need for effective regulation and oversight.

Keywords: Insolvency and Bankruptcy Code, Debtor rights, Creditor rights, Distressed assets, Secured creditors, Unsecured creditors, Committee of Creditors, Recovery rates.

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Research Area: Science and Technology

Published Paper URL: https://tijer.org/TIJER/viewpaperforall?paper=TIJER2302102

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