Rajeswari Sengupta, Anjali Sharma
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In this paper we analyse the corporate
insolvency resolution procedures of India, UK
and Singapore within a common framework of
well-specified principles. India at present
lacks a single, comprehensive law that addresses
all aspects of insolvency of an enterprise. The
presence of multiple laws and adjudication fora
has created opportunities for debtor firms to
exploit the arbitrage between the systems to
frustrate recovery efforts of creditors. This
also adversely impacts timeliness of the
resolution process. While the importance of a
well-functioning insolvency resolution framework
can hardly be overstated, there is no single
framework with well-defined rules laid out for
organizing an efficient insolvency resolution
process. Hence we undertake a cross-country
comparison, the underlying motivation being to
highlight the similarities as well as
differences across the laws and procedures of
the three countries. The objective is to learn
important lessons for India, in context of the
formation of the Bankruptcy Law Reforms
Committee (BLRC) in 2014. The Committee has
recently recommended an Insolvency and
Bankruptcy Code that would be applicable to all
non-financial corporations in India.
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