The introduction of corporate insolvency under Indias Insolvency and Bankruptcy Code (IBC), 2016, was a watershed moment. It transformed the debtor-creditor relationship in India. Till August 2023, 26,518 applications for the insolvency resolution of companies with defaults on debt worth 9.33 trillion were withdrawn before their admission, according to data from the Insolvency and Bankruptcy Board of India (IBBI). The threat of losing ownership has changed the behaviour of debtors, many of which are opting for pre-IBC-process deals to resolve distress.
When personal insolvency provisions were introduced in December 2019, personal guarantors challenged the notification at the Supreme Court (SC) in Lalit Kumar Jain vs Union of India. Wh…
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