Decoding Extortionate Credit Transactions Under The Insolvency And Bankruptcy Code, 2016: A Critical Analysis And Call For Reforms
Avantika, Campus Law Centre, Faculty of Law, Delhi University
ABSTRACT
Extortionate credit transactions, characterized by oppressive and unfair terms, have long plagued societies. Such predatory lending practices target vulnerable individuals and businesses, exacerbating their financial struggles. Recognizing the detrimental impact of these transactions, the legal frameworks in India provide provisions to address them effectively. This article examines the concept of extortionate credit transactions in the Indian context, focusing on the interpretation and application of Section 50 of the Insolvency and Bankruptcy Code, 2016. The article also explores significant judicial pronouncements which shed light on the courts' approach to identifying and remedying extortionate credit transactions along with the various shortcomings within the existing framework that needs to be addressed align the objectives of the Insolvency and Bankruptcy Code with the goal of ensuring equal treatment for all creditors.
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