- Research/Scholar Paper name – “Corporate Insolvency and Individual Insolvency: A Comparative Analysis”
- Author: Ms. Shraddha Oberoi
- Institution: Assistant Professor of Law at Shree Guru Gobind Singh Tricentenary University, Gurguram
- Affiliation: Centre for Study of Contemporary Legal Issues
- Date of Publication: 03/08/2021
The Insolvency and Bankruptcy Code, 2016 (IBC) which was notified on 28th May, 2016 amended and consolidated the laws related to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a way to maximize the value of assets, promote entrepreneurship, to avail the credit and balance the interests of all stakeholders. The Code has changed the priority related to payment of dues. The payment to workers was given an edge as compared to the Government dues which are paid after the payment to the unsecured creditors.
The Insolvency and Bankruptcy Code, 2016 (IBC) aims to ensure the settlement of insolvency cases smoothly; it also assures to faster the business transactions and providing a database of Creditors.
The Insolvency and Bankruptcy Code, 2016 plays an important role in the economic system of our country as it deals with the foreign investments in order to ease the business and also it extends to the whole of Indian (except Part III which deals with Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms of the Code which shall not extend to the State of Jammu and Kashmir) country.
The researcher in the research paper tries to comprise the meaning of Insolvency and Bankruptcy and its classification into Corporate Insolvency and Individual Insolvency. It also contains the difference between the two in relation to their functions, procedure under the statute and the role of Corporate Insolvency Professionals Insolvency professionals who act as intermediaries for playing an important role in the efficient and effective working of the insolvency and bankruptcy process, under the Code as well as under the Foreign Jurisdictions especially of United States of America and United Kingdom.
The Researcher also aims to explain the concept of Fugitive Economic Offenders Bill, 2018 in presence of various laws dealing with the protection of companies and individuals from being insolvent is to avoid criminal prosecution in case of economic offenders.