Performance Analysis and Liquidation Preference under Insolvency and Bankruptcy Code in India

Abstract

The Insolvency and Bankruptcy Code (2016) was introduced with the main objective of maximization of value of assets and revival of stressed assets. The paper analyses the performance of the Insolvency and Bankruptcy Code (IBC) 2016 on various parameters since its inception. The paper emphasises the fact that in order to achieve the timeline whether the code is favouring liquidation over resolution. The paper is qualitative in nature analyzing the performance of the IBC on various parameters. The study finds out that the code has given positive results on the resolution of insolvency of 12 major NPA accounts as compared to other previous schemes but in order to prove its efficacy it has somewhere missed its major objective of resolution of stressed assets, which is its primary objective, and favored liquidation. The paper will give an overview of the performance of the code which is a gap in literature as it is a new code in Indian insolvency regime.