The Insolvency and Bankruptcy Framework and Principle of Business Efficacy across Different Jurisdictions in the COVID Era

Abstract

The famous phrase from the Darwinian evolutionary theory, ‘survival of the fittest’ seems to be true in the backdrop of the current global economy. The Coronavirus (‘Covid-19’) crisis has compressed this concept into six months or for as long as this pandemic remains. While the spread of this virus is one of the biggest human tragedies, it has been nothing less than a catastrophe for the global economy, leading to the disruption of viability of businesses at a global level. This has prompted the business community all over the world to seek relief from their governments on debts and appeal for various other safety net measures to ensure the continuity of their businesses amidst, and after, this pandemic. Most of the governments have proactively introduced unprecedented measures to safeguard the businesses from going under insolvency and to ensure that not only the fittest companies but all survive this pandemic. This article explores these measures adopted in a few common law (UK and India) and civil law countries (France and Germany) and analyses their possible impact on the parties involved in the short as well as the long term. Insolvency, Covid-19, Moratorium, Temporary Relief, UK, India, France, and Germany