The Insolvency And Bankruptcy Code, 2016: A Critical Analysis Of Its Impact On Corporate Debt Resolution In India

This paper critically examines the implications of the Insolvency and Bankruptcy Code, 2016 (IBC), on the resolution of corporate debt in India. It asks if the IBC has improved corporate governance, balanced debtor and creditor interests, raised creditor recoveries, and given time-bound solutions. Doctrinal examination of the IBC and notable court decisions complements empirical data from Insolvency and Bankruptcy Board of India (IBBI) reports and outcome-tracking literature. The results showed that the IBC developed a consistent, creditor-driven resolution mechanism and generated substantial high-value recoveries, yet systematic problems persisted, including litigation-driven delays. and restrictions on tribunals. Unmatched recoveries across creditor categories, insufficient avoidance actions, and incomplete cross-border arrangements. Among the particular adjustments recommended by the study are the adoption of cross-border coordination norms, professionalization of RP, protection of operational creditors, standardized Conflict safeguards, the digitization and capacity-building of courts, and outcome indicators.