Geetansh Kathuria, Amity Law School, Noida Sector 125
ABSTRACT
The Insolvency and Bankruptcy Code is a crucial piece of legislation that aims to resolve insolvencies and promote a healthy business environment in India. It has significantly impacted the country’s economic growth by increasing the GDP growth rate. It gives an efficient resolution of Insolvencies in a time-bound manner. It has established NCLT and IBBI to oversee and facilitate the resolution process and has enhanced the Credit culture as defaulting borrowers are more likely to face timely consequences. IBC has boosted investor confidence in the Indian market by promoting entrepreneurship and by protecting the interest of stakeholders, creditors, and investors. It has improved the recovery rate of stressed assets, which will benefit ARC by lowering the value of NPA’s, and boosting the Indian economy. The code has brought several positive changes, improvements may still arise as its implementation evolves. It has laid a strong foundation and has positively influenced the country’s economic growth trajectory.
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