Impact Of The IBC On Mirco, Small And Medium Enterprises (MSMEs): A Comparative Study
- IJLLR Journal
- Mar 25
- 1 min read
Purva Vishwas Mankame, Thakur Ramnarayan College of Law
ABSTRACT
The Insolvency and Bankruptcy Code (IBC), 2016, has significantly reformed India's insolvency resolution landscape, particularly for Micro, Small, and Medium Enterprises (MSMEs). This study explores the evolution of insolvency mechanisms before and after the IBC, highlighting the challenges MSMEs face, including procedural complexities, financial burdens, and the dominance of creditors in decision-making. The effectiveness of the PrePackaged Insolvency Resolution Process (PPIRP) is critically examined as a specialized framework for MSMEs. A comparative analysis with insolvency regimes in the United Kingdom and the United States provides insights into global best practices and potential reforms. The study concludes with policy recommendations to enhance MSME accessibility to insolvency resolution, improve the efficiency of PPIRP, and strike a balance between business survival and creditor rights.
Keywords: IBC, Insolvency and Bankruptcy Code, MSME Insolvency, Pre- Packaged Insolvency Resolution Process (PPIRP), Debt Resolution, Business Recovery, Corporate Insolvency, Comparative Insolvency Law, Creditor Rights, MSME Insolvency Reforms.
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