Creditor-Led CIRP under IBC has instilled fear in the Corporate Debtors of India, while bankruptcy under U.S. Bankruptcy Code is debtor-friendly and UK insolvency is known for speed, lower professional costs, creditor protection and reduced litigation

Abstract

Corporate insolvency under IBC is an offshoot of Company law, the reforms in insolvency took place in India after in the pipeline for many years and these took a formal shape with the introduction & enactment of the Insolvency and Bankruptcy Code, 2016. It is the failure of the corporate persons to service debt which leads to insolvency. The aims and objects of the Code are to provide & help in the resolutions of distressed assets whenever it is feasible and liquidation where the same cannot be revived. However, the IBC has deviated from its objects. The creditor-led IBC has instilled fear in the corporate sector in India which was not the object of the framers of the Code. The CIRPs under IBC are being handled as a tool to take over companies which the corporate debtors have established with their toil and efforts.