Bankruptcy Law Reforms
On 22nd August 2014, the Ministry of
Finance created a committee called the Bankruptcy
Legislative Reforms Commission (BLRC), headed by
T. K. Viswanathan (Former Union Law Secretary and
Secretary General Lok Sabha). The mandate of the BLRC
was to draft a new bankruptcy law, along the lines of
the work done by the Justice Srikrishna-led Financial
Sector Legislative Reforms Commission. The law drafted
by the BLRC is a consolidated bankruptcy framework,
covering both individuals as well as legal entities, and
aims to be a holistic reform of the insolvency
resolution process for all entrepreneurs in India. The
reforms aim to improve the time taken to resolving
insolvency and improve loss given default on repayment
on credit. In turn, this can lead to a significant
improvement of the ease and cost of doing business in
India, and is expected to develop the credit and the
debt securities markets.
The Committee submitted its report to the Finance
Minister on 4th November 2015. The structure of the
report is similar to the work of Justice Srikrishna's
FSLRC: the economic rationale and design features of a
new legislative framework to resolve insolvency and
1 and the draft bill was in Volume 2. A
modified version of the draft bill, with public comments
incorporated, was tabled in Parliament in the winter
session on 23 December 2015. Once it was tabled,
Parliamentary Committee on Insolvency and Bankruptcy
Code, 2015 (JPC) was set up to analyse the draft
bill in detail. The JPC submitted its report. The
draft of the bill, which was then passed by both
houses of Parliament. The bill received President's
assent on 28th May, 2016, and is called the Insolvency
and Bankruptcy Code, 2016.
Response to policy proposals
The Indian bankruptcy reform: The state of the art, 2018, by Ajay Shah and Susan Thomas, The Leap Blog, 22nd December 2018.
- An annotated reading list on the Indian bankruptcy reform, 2018, Rajeswari Sengupta and Anjali Sharma, The leap blog, 14th August 2018
- The Centre's approach to Insolvency and Bankruptcy Code has costs, Bhargavi Zaveri, Livemint, 14th June 2018
The proper purpose of insolvency law, by Pratik Datta and Rajeswari Sengupta, Livemint, 6th May 2018
Disclosure of default: The present SEBI disclosure regulation is adequate by Ajay Shah and Bhargavi Zaveri, Ajay Shah's blog, 11th January 2018
Needed: bankruptcy-related disclosures by Diya Uday, Mint, 25th December 2017
Commercial wisdom to judicial discretion: NCLT reorients IBC, by Pratik Datta and Rajeswari Sengupta, Ajay Shah's blog, 13th December 2017
Understanding the recent IBC (Amendment) Ordinance, 2017 by
Rajeswari Sengupta and Anjali Sharma, Ajay Shah's blog, 7th December 2017
The challenges before insolvency professionals by
Latha Venkatesh, Mint, 17th July 2017
Essar Steel vs RBI: How a press release became centre of controversy by
Maulik Pathak, Jayshree P.Upadhyay, Mint, 17th July 2017
Govt working on a simpler insolvency and bankruptcy code for SMEs by
Gireesh Chandra Prasad, Mint, 17th July 2017
RBI trying to set precedent with large NPA cases: Shardul Shroff by
Gopika Gopakumar, Jayshree P.Upadhyay, Mint, 17th July 2017
Insolvency professionals in high demand: CAs, cost accountants and company secretaries rush to get qualified by
Atmadip Ray, Saikat Das, The Economic Times, 17th July 2017
The Indian bankruptcy reform: The state of the art, 2017 by
Ajay Shah, Susan Thomas, Ajay Shah's blog, 13th July 2017
Issues with the regulation of Information Utilities by
Sumant Prashant, Prasanth Regy, Renuka Sane, Anjali Sharma, Shivangi Tyagi, Ajay Shah's blog, 12th July 2017
How lines of role clarity are getting blurred by
Somasekhar Sundaresan, Business Standard, 12th July 2017
asked for it, so the Bankruptcy Code is here to stay by
Sridhar Ramachandran, The Economic Times, 12th July 2017
Essar Steel insolvency issue vs RBI: What lies ahead? by
Pratik Datta, Business Standard, 6th July 2017
Understanding judicial delays in debt tribunals by
Prasanth Regy, Shubho Roy, Ajay Shah's blog,01st May 2017
Does the NCLT Have Enough Judges? by Devendra Damle, Prasanth Regy, Ajay Shah's blog, 06th April 2017
Judicial Procedures will make or break the Insolvency and Bankruptcy
Code by Pratik Datta, Prasanth Regy, Ajay Shah's blog, 24th January 2017
Challenges in the Transition to the New Insolvency and Bankruptcy Code by Rajeswari Sengupta, Anjali Sharma, The Wire, 15th December 2016
How will IBC 2016 deal with existing bank NPAs? by Rajeswari Sengupta, Anjali Sharma, Ajay Shah's blog, 05th December 2016.
Ushering in insolvency professionals by Anirudh Burman, Rajeswari Sengupta, Business Standard, 20th November 2016.
It isn’t enough to focus on Doing Business
rankings by Rajeswari
Sengupta, Mint, 12th October
Clear the air before enforcing Bankruptcy Code by Anirudh Burman, Rajeswari Sengupta, Business Standard, 9th October 2016.
should not regulate asset reconstruction
companies by Pratik Datta, Rajeswari
Sengupta, Business Standard, 2nd
Analysis of the recent proposed SARFAESI
amendments : are these consistent with the
Insolvency and Bankruptcy Code? by
Rajeswari Sengupta, Richa Roy, Ajay Shah's
blog, 29th May 2016.
Indian bankruptcy reforms: Where we are and where
we go next by Ajay Shah, Susan
Thomas, Ajay Shah's blog, 18th
code: Will the govt be able to achieve its
objective? by Anjali Sharma, Susan
Thomas, Mint, 10th May 2016.
bankruptcy code will save lenders by Anjali Sharma, Susan
Thomas, Mint, 1st April 2016.
Implementing the new insolvency law by Aparna Ravi, Business Standard, 27th March 2016
cause of NPAs by Renuka Sane, Anjali Sharma, Susan
Thomas, Business Standard, 28th February 2016.
Missing pieces in the Bankruptcy Code by Shivangi Tyagi and Bhargavi Zaveri, Business Standard, 25th February 2016
Transforming the operational efficiency of tribunals and courts by Pratik Datta, Ajay Shah's blog, 8th February 2016
Land market reform is an important enabler of bankruptcy reform by K. P. Krishnan, Venkatesh Panchapagesan and
Madalasa Venkataraman, Ajay Shah's blog, 31th
utilities under the Insolvency and Bankruptcy Bill by
Anirudh Burman, Renuka Sane, an IGIDR FRG interview,
A better bankruptcy regulator by Pratik Datta, Rajeswari Sengupta, Business Standard, 10th January 2016
Creditors' dues find precedence over tax recovery in insolvency bill by Lubna Kably, Times of India, 29th December 2015.
Smart caFe: A critical building block for a mature market economy by Abizer Diwanji, Financial Express, 29th December 2015.
Editorial: SICA…Sarfaesi…NCLT, Editorial, Financial Express, 28th December 2015.
Pass bankruptcy bill: A modern code can rescue us from bankruptcy on job creation, Editorial, Times of India, 28th December 2015.
insolvency: Lessons from the UK and Australia by Renuka
Sane, Ajay Shah's blog, 28th December 2015.
Operational versus financial creditors redux, by Jayanth Varma, Prof. Jayanth R. Varma's Financial Markets Blog, 25th December 2015.
Building the institution of Insolvency Practitioners in India by Anirudh Burman, Ajay Shah's blog, 25th December 2015.
- Welcome step forward, Editorial, Business Standard, 23rd December 2015.
Bankruptcy code may be turned into money bill, TNN, Times of India, 23rd December 2015.
Bankruptcy Bill: The fight against crony capital now has two legs by R Jagannathan, First Post, 22nd December 2015.
Firm insolvency process: Lessons from a cross-country comparison by Rajeswari Sengupta, Anjali Sharma, Ajay Shah's blog, 22nd December 2015.
Creating a competent insolvency professionals’ pool
by Anirudh Burman, Suharsh Sinha, Financial
Express, 21st December 2015.
Ensuring information access during financial distress
by Anjali Sharma, Shivangi Tyagi, Shreya Garg, Financial
Express, 17th December 2015.
Enabling better judicial outcomes in insolvency
by Ashika Dabholkar, Pratik Datta, Financial Express, 14th
Treatment of individual credit in the draft Insolvency and Bankruptcy Code
by Shreya Garg, Renuka Sane, Ajay Shah's blog, 05th
India should help businesses go bust, Bloomberg, Mint, 01st December 2015.
A good starting point
by Mritunjay Kapur and Varun Gupta, Financial
Express, 30th November 2015.
and Bankruptcy Bill, 2015: The return to reforms
Bishnoi, Financial Express, 28th
- An ecosystem to cope with corporate defaults, Editorial, Mint, 26th
Road to insolvency resolution by Rajeswari Sengupta, Richa Roy, Mint, 26th
From non-performing to performing by Rajeswari Sengupta, Richa Roy, Mint, 25th
Fixing bankruptcy, insolvency laws by Sudipto Dey, Business Standard, 22nd
up the ecosystem for personal credit
by Renuka Sane, Ajay Shah's blog, 21st
business of going bust, The Economist,
21st November 2015.
reform for India by Nirvikar Singh, Financial
Express, 20th November 2015.
to let go by Una Galani, Reuters Breaking
Views, 18th November 2015.
versus Creditor and Creditor versus Debtor by Jayanth
R. Varma, Prof. Jayanth R. Varma's Financial Markets Blog,
16th November 2015.
the barriers to exit, Editorial, Mint, 15th
reforms: It's not the ranking that matters
by Rajeswari Sengupta, Ajay Shah's blog, 13th November 2015.
Dealing With Failure by Susan Thomas, Indian Express, 13th November 2015.
Inconsistencies and forum shopping in the Indian bankruptcy process
by Aparna Ravi, Ajay Shah's blog, 12th
Towards a unified insolvency and bankruptcy code
by Aparna Ravi, Business Standard, 09th November 2015.
- Wholesale Reform of Indian Insolvency Law, by Jason Kilborn, Credit Slips: A discussion on credit, finance and bankruptcy, 6th November 2015.