Jiya Bilthare, Kirit P. Mehta School of Law, NMIMS University, Mumbai
ABSTRACT
Preceding the adoption of the Insolvency and Bankruptcy adoption, corporate insolvency was governed by a complicated web of laws in India. The Companies Act of 1956, the Sick Industrial Companies Act of 1985, the Recovery of Debts Due to Banks and Financial Institutions Act of 1993, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and numerous other laws govern corporate insolvency. The IBC of 2016 unifies the regulations about corporate insolvency due to the inefficiencies of the previous system. This article aims to establish the challenges that take place while interpreting the IBC, 2016.
INTRODUCTION
The laws and guidelines that govern the IBC have undergone periodic revisions. In major decisions, the Supreme Court and the lower courts have interpreted the provisions, called into question its constitutionality, and resolved any confusion. The Insolvency and Bankruptcy Code is difficult to apply correctly. The regulatory structure has undergone numerous modifications. The purpose of passing these laws and modifications is to make sure that the processes run smoothly.
The most recent and revised versions of the Act, orders, circulars, related rules, and regulations may all be found on the website of the Insolvency and Bankruptcy Board of India (IBBI) and can be studied to fully comprehend the Insolvency and Bankruptcy Code, in addition to the way, the code has been interpreted by judges. It can be said that India's bankruptcy law is evolving and undeveloped. The ever-evolving law is challenging to read and comprehend due to its continual alterations.
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