I. Introduction: Need for
streamlined MSME Insolvency Regime
- Origin of PPIRP
Pre-Packaged Insolvency Resolution
Process (PPIRP) symbolises a crucial and targeted legislative
evolution within the Indian framework of Insolvency i.e. Insolvency
and Bankruptcy Code (IBC), 2016. PPIRP has been formulated with
purpose to address the financial challenges faced by MSMEs by
implementing a streamlined, hybrid mechanism designed to ensure
maximum preservation of claim value.
The long impending need for
introducing such concept had peaked during the economic crisis
precipitated by the COVID-19 pandemic, which placed numerous MSMEs,
considered the backbone of the India’s economy, at the brink of
collapse. Realising need for a…