An International Perspective of the Changes Proposed to the Debt Recovery Laws of India

Abstract

This chapter relates to the recent changes made to certain debt recovery laws enforced in India and the current parallel legal regime relating to debtor protection in U.S. and U.K. As per the statement of objects and reasons, these amendments are being proposed to facilitate the speedy disposal of cases by the debt recovery tribunals. This chapter analyzes the relevant international legal regime in place in U.S. and U.K. to suggest changes to the current Indian regime relating to debtor's rights, so as to better balance the interests of the debtors with the interests of the creditor. The authors request the Indian legislature to draw guidance and inspiration from the current regime of legal rights as available to the debtors in U.S. and U.K. and pass laws for preventing banks and financial institutions from exploiting debtors further.