Emerging Jurisprudence on Corporate Insolvency

Open Access

Year : 2019 | Volume : | Issue : 2 | Page : 14-20

    Shipra Sayal

  1. Institute of Law, Nirma University, Ahmedabad, Gujarat,, India


There have been multiple statutory instruments for insolvency resolution process in India. These include the Sick Industrial Companies Act, 1985, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, and the Companies Act, 2013.Due to this multiplicity of forums there was immense confusion as to the applicability of Law. All of these multiple legal avenues, and a hamstrung court system led to India witnessing a huge piling up of non-performing assets, and creditors waiting for years at end to recover their money. The Bankruptcy Code is an effort at a comprehensive reform of the fragmented regime of corporate insolvency framework, in order to allow credit to flow more freely in India and instilling faith in investors for speedy disposal of their claims. The Code consolidates existing laws relating to insolvency of corporate entities and individuals into a single legislation.

Keywords: Non-Performing Assets, Debt recovery, Insolvency, Bankruptcy, Liquidation

[This article belongs to Journal of Banking and Insurance Law(jbil)]

How to cite this article: Shipra Sayal Emerging Jurisprudence on Corporate Insolvency jbil 2019; 1:14-20
How to cite this URL: Shipra Sayal Emerging Jurisprudence on Corporate Insolvency jbil 2019 {cited 2019 Feb 22};1:14-20. Available from: https://journals.stmjournals.com/jbil/article=2019/view=104346

Full Text PDF Download


  1. Sameera Saurabh. Insolvency and Bankruptcy Code: Debt restructuring and managing NPA in India. http://businessworld.in/article/Insolvency-Bankruptcy-Code-Debt-Restructuring-Managing-NPA-InIndia/06-07-2017-121584/(July 2017) accessed on 20 Mar 2018.
  2. NPA Problem: India ranked 5th in bad loans in world, EU’s 4 tumbling economies toplist.https://www.businesstoday.in/current/policy/npa-problem-india-ranking-bad-loans-economies-with-huge-npabank-recapitalisation/story/266898.html.Accessed on 20 Mar 2018.
  3. Insolvency and Bankruptcy News: The Quarterly Newsletter of the Insolvency and Bankruptcy.<http://ibbi.gov.in/w ebadmin/pdf/whatsnew/2018/Feb/news%20letter%20Oct-Dec%2017_2018.
  4. The companies are: (a) Bhushan Steel Limited; (b) Bhushan Power & Steel Limited; (c) Lanco Infratech Limited; (d) Alok Industries Limited; (e) Era Infra Engineering Limited; (f) Essar Steel Limited; (g) Amtek Auto Limited; (h) Electrosteel Limited; (i) Jaypee Infratech Limited; (j) ABG Shipyard Limited; (k) Jyoti Structures Limited; and (l) Monnet Ispat & Energy Limited.
  5. RBI Circular No. DBR.No.BP.BC.101/21.04.048/2017-18 dated 12 February 2018 on “Resolution of Stressed Assets–Revised Framework”.
  6. Insolvency and Bankruptcy News: The Quarterly Newsletter of the Insolvency and Bankruptcy<http://ibbi.gov.in/w ebadmin/pdf/whatsnew/2018/Feb/news%20letter%20Oct-Dec%2017_2018
  7. Trilegal.The Insolvency and Bankruptcy Act, 2016: Key Highlights. (May 18, 2016, 08:00 m.). http://www.mondaq.com/india/x/492318/Insolvency+Bankruptcy/The+Insolvency+And+Bankruptcy+Code+20 16+Key+Highlights. Accessed 20 Mar 2018.
  8. Vivek Raj Bahadur Singh. A Study of Non-Performing Assets of Commercial Banks and its recovery in India. SCMSJ.Mar 2016; 4:110
  9. Id.
  10. K.S.Venkateswara Kumar et al. A study on role of statutory bodies in handling NPAs. IJABER. Jan 2017; 107.
  11. Pandey R. Insolvency and Bankruptcy Act, 2016: A boon for secured creditors. Singh and Associates. (Aug 4, 2016, 03:45 p.m.). http://www.mondaq.com/india/x/516380/Insolvency+Bankruptcy/Insolvency+And+Bankruptcy+Act+2016+A+ Boon+For+Secured+Creditors. accessed 20 March 2018.
  12. Raavi B. How well will the new IB code serve the Indian Economy? Indian Express (Nov 11, 2017, 05: 04 p.m.). http://www.newindianexpress.com/magazine/voices/2017/nov/11/how-well-will-the-new-ib-code-serve-theindian-economy-1697074.html accessed 20 march 2018
  13. Reserve Bank of India ,rbi.org.in. (Accessed 20 Mar 2018).
  14. Mishra UM, PawaskarA study of non-performing assets and its impact on banking sector. JFR. Mar 2017; 3.
  15. ibid
  16. IANS.Gross NPA may rise to 9.5 lakh cores: Study. Economic Times. (Jan 22, 2018, 03.16m.) https://economictimes.indiatimes.com/markets/stocks/news/gross-npa-may-rise-to-rs-9-5-lakh-crore-by-marchstudy/articleshow/62603229.cms accessed 20 March 2018.
  17. MiyanA Comparative Statistical Approach towards NPA of PSU and Private Sector Banks in India. IJARCS. Jan-Feb 2017; 8: 46.

Regular Issue Open Access Article
Volume 1
Issue 2
Received June 5, 2018
Accepted June 13, 2018
Published February 22, 2019