ISO 9001:2015

A STUDY ON EFFICACY OF IBC OVER OTHER DEBT RECOVERY CHANNELS – WITH SPECIAL REFERENCE TO RECOVERY OF NPA’S OF SCHEDULED COMMERCIAL BANKS IN INDIA

In our country, the existing legal and institutional mechanism for handling debt default, either through the Indian Contract Act, 1872 or through special laws like the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, or Enforcement of security interest under the SARFAESI Act, 2002 has not effectively exercised by the lenders. The measures taken under the Sick Industrial Companies (Special Provisions) Act, 1985 and winding up provisions of the Companies Act, 1956 also not yielded the expected result in terms of recovery of Non-performing assets by the banks/Financial institutions or achieved quick restructuring of default firms.  In this context, a milestone improvement is implementation of IBC, 2016. It has emerged as single law to address insolvency and bankruptcy by merging various laws. IBC, 2016 covers individuals, partnerships, partnership firms companies and other legal entities as may be notified except financial service providers. It is aimed towards establishing an overarching framework to ease the winding up of the business or engineering a turnaround or exit. The code aims at insolvency resolution in a less time frame by insolvency professionals appointed for the purpose.  The aim of this study is to research the efficacy of IBC, 2016 over other recovery modes and legislations on recovery of Non-performing assets of SCBs in India.

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Keywords: IBC 2016, Insolvency, Bankruptcy, Liquidation, NCLT, DRT.


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