Treatment of Disputed Claims in Corporate Insolvency: Evolving Jurisprudence

Abstract

The introduction of the Insolvency and Bankruptcy Code, 2016 (IBC) in India as a consolidation of insolvency and bankruptcy laws has come with its challenges that have found resolution through judicial pronouncement, regulatory clarification or legislative intervention. One of the key issues in relation to process of corporate insolvency resolution has been in relation to claims against a corporate debtor and when such claims should be made – timing, validity and admission. Here, the role of the debtor, creditor and the insolvency administrator (the insolvency professional) become a subject matter of immediate discussion. In this paper, the authors seek to address the questions surrounding treatment of claims in insolvency resolution and offer next steps while tracing the jurisprudential development related to claims made in corporate insolvency under the IBC.