The Indian Insolvency and Bankruptcy Regime

The Government has been looking to take adequate action to improve the “ease of doing business ranking”, in addition to making attempts to address the alarming rise of stressed assets in India. Resolving Insolvency being one of the criteria for World Bank’s ease of doing business (in which India ranks 136 among 185 countries), there was a need to address the issues surrounding insolvent and bankrupt entities. With the aim to address such issues, the Insolvency and Bankruptcy Code, 2016 (“IBC”) was introduced and enforced in December 2016. The IBC is intended to assist domestic and foreign lending by providing a uniform, comprehensive and efficient insolvency legislation, with an emphasis on revival as a first avenue for debt recovery.