Challenges Faced By Small And Medium Enterprises (SMES) Under The Indian Bankruptcy Code (IBC)

Ammar Bhoira, SVKM’s Pravin Gandhi College of Law

ABSTRACT:

The implementation of the Indian Bankruptcy Code (IBC) aimed to establish a sturdy framework for addressing insolvency and bankruptcy cases within India. However, while the IBC has been largely successful in addressing the insolvency concerns of large corporations, its impact on Small and Medium Enterprises (SMEs) remains a subject of debate. This paper aims to explore the challenges faced by SMEs under the IBC regime, examining factors such as limited resources, procedural complexities, and access to credit. By thoroughly examining pertinent literature and empirical evidence, this paper aims to offer insights into the specific challenges faced by SMEs when navigating the insolvency resolution process as outlined in the IBC.