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The Indian Insolvency and Bankruptcy Bill: A Squandered Opportunity

Author

Listed:
  • Pandey, Ashish

Abstract

In this perspective article, the author analyses the eventual efficacy of recently passed Insolvency and Bankruptcy Bill in India. The author ascertains that the Bill in its current form encourages liquidation at the cost of financial restructuring. An opinion is established based on secondary research that the Bill fails to provide adequate representation to certain key stakeholders. The author highlights a lack of clarity in the Bill regarding the appointment of executants. Certain lacunae in the Bill that may impede its overall effectiveness are explicitly identified. The issue of conflicts between various stakeholders is debated in the context of current Bill. The author draws upon cross-country experiences to suggest remedial measures that address current impediments in the successful implementation of the Bill.

Suggested Citation

  • Pandey, Ashish, 2016. "The Indian Insolvency and Bankruptcy Bill: A Squandered Opportunity," MPRA Paper 71698, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71698
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    References listed on IDEAS

    as
    1. Philippe Aghion & Oliver D. Hart & John Moore, 1994. "The Economics of Bankruptcy Reform," NBER Chapters, in: The Transition in Eastern Europe, Volume 2, Restructuring, pages 215-244, National Bureau of Economic Research, Inc.
    2. Stijn Claessens & Leora F. Klapper, 2005. "Bankruptcy around the World: Explanations of Its Relative Use," American Law and Economics Review, American Law and Economics Association, vol. 7(1), pages 253-283.
    3. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    4. John R. Graham & Hyunseob Kim & Si Li & Jiaping Qiu, 2013. "Human Capital Loss In Corporate Bankruptcy," Working Papers 13-37, Center for Economic Studies, U.S. Census Bureau.
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    Cited by:

    1. Pandey, Ashish & Guhathakurta, Kousik, 2023. "Use of Contingent Payment Mechanism in Nonperforming Loan Auctions," Finance Research Letters, Elsevier, vol. 52(C).

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    JEL classification:

    • K29 - Law and Economics - - Regulation and Business Law - - - Other

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