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Advancing Insolvency Resolution in India
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After independence, Indian companies operated within structured legal frameworks supporting normal business activities. When financial stress emerged, they relied on multiple legal mechanisms for resolution. These included company law, debt recovery processes and secured creditor frameworks. Each mechanism followed separate forums and procedures. This often made coordination complex and time-consuming.
To address these challenges, the Government introduced the Insolvency & Bankruptcy Code, 2016. It consolidated existing laws into a single system. The Code also strengthened creditor participation and aimed to maximise asset value, while balancing the interests of…