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Scientific reports of Bukhara State University

Abstract

Introduction. This article discusses the theory of corporate restructuring and its importance in the country. Business restructuring is the redesigning of existing business strategies and aspects for various reasons. Usually a corporate’s varied challenges and financial adjustments to its assets and liabilities necessitates this process. It analyses how the different avenues of business restructuring exercises such as mergers, acquisitions, amalgamations, compromises, and arrangement are processed with in respect to the process provided under the Insolvency and Bankruptcy Code 2016. Introduction followed by brief Literature Review. Research methods are exploratory in nature, since the study has to explore the impact of IBC on Indian Economy. Results and discussions. The Insolvency and Bankruptcy Code (IBC) is considered as the major structural legal reform in the world. It is making a robust economy by reducing the amount of Non-Performing Assets and improving Ease of Doing Business (EoDB) ranking. It has attracted investors from abroad because they now seek each developing nation as a legible place for investment owing to the reasons as, smaller timeframe for resolution reduces risk of losing investment and flexible exit policy, even when company becomes insolvent the IBC gears towards maximum realisation of value of assets. It has given a new identity to the developing economy on the International platform. It seeks to create a single unified law for insolvency and bankruptcy. IBC carries out this unique restructuring by maintaining an upper-hand on the Debtor (the business) and affirming its creditor-in-control locus. It also discusses how an IP performs the function of re-engineering with respect to sick companies that fall under the rigours of IBC. Conclusions. The approach under the IBC towards reviving a “sick” business in a time-bound manner of 180-270 days. Till date, business re-engineering under IBC has revived 221 business, while constant updates in the legislation increase the chances of more business revivals.

First Page

116

Last Page

125

DOI

10.52297/2181-1466/2021/5/3/11

References

1. Deepak Tandon, Neelam Tandon, “Ballooning Non-Performing Assets in Indian Banking and Insolvency and Bankruptcy Code: Resolution Plans and Cases”, Vol 6(1) International Journal of Political Activism and Engagement, 1-24 (2019)

2. Reserve Bank of India, “Report on Trends and Progress of Banking in India”, December 24, 2019, https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0RTP241219FL760D9F69321B47988 DE44D68D9217A7E.PDF

3. Srijan Anant, Aayushi Mishra, “A Study of Insolvency And Bankruptcy Code And Its Impact On Macro Environment Of India”, Vol 7(3), International Journal of Engineering Development and Research , 28-35 (2019)

4. CRISIL, “In three years of IBC, more hits than misses”, https://www.crisil.com/en/ home/newsroom/pressreleases/2019/05/in-three-years-of-ibc-more-hitsthan-misses.html

5. Renuka Sane, “The way forward for Personal Insolvency in Indian Insolvency and Bankruptcy Code”, National Institute of Public Finance and Policy- Working Paper No. 251 (January 3, 2019), https://www.nipfp.org.in/media/medialibrary/2019/02/WP_251_2019.pdf

6. Nishith Desai Associates, “Analyzing 2018 through the lens of the Insolvency Code”(January 17, 2019) https://nishithdesai.com/information/news-storage/news-details/article/ analysing-2018-through-the-lens-of-the-insolvency-code.html

7. Esther Tensingh and Dr. Suresha B., “A study on the impact of the Insolvency and Bankruptcy Code, 2016 on Indian Commercial Banks”, Vol 6(6), Journal of Emerging Technologies and Innovative Research, 68-75 (June 2019)

8. Neetika Ahuja, Dinesh Gupta, “Corporate Restructuring under Resolution Plan” (October 15, 2019), http://www.lawstreetindia.com/experts/column?sid=322

9. CA Binay Kumar Singhania (Insolvency Professional), “Liquidation the last resort under IBC”, https://insolvencyandbankruptcy.in/wp-content/uploads/2019/04/Liquidation-last-resort-under-IBC.pdf

10. Himanshu Kohli, “Resolution Plan- A Jinnie in a Bottle”, April 25, 2020, https://ibclaw.in/resolution-plan-a-jinnie-in-a-bottle-by-cs-himanshu-kohli/#:~:text=A%20 Resolution%20Plan%20(%E2%80%9CRP%E2%80%9D,on%20its%20feet%20in%20earnest.

11. Nimit Gupta, Nimsha Desai and Evanshi Garg, “Impact of Insolvency and Bankruptcy Code on India’s Macro Economy focussing on Indian Commercial Banks”, Vol 22 Supremo Amicus, 2020, https://supremoamicus.org/wp-content/uploads/2020/11/Nimit-Gupta-1.pdf

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