LIJDLR

Committee of Creditors

EFFECTIVENESS OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016: A STUDY OF CREDITOR – DEBTOR BALANCE

Volume IV Issue I /

EFFECTIVENESS OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016: A STUDY OF CREDITOR – DEBTOR BALANCE Qifah, BBA.LLB (H.), 6th Semester, Student at Model Institute of Engineering and Technology, Jammu (India) Anmol, BBA.LLB (H.), 6th Semester, Student at Model Institute of Engineering and Technology, Jammu (India) Download Manuscript doi.org/10.70183/lijdlr.2026.v04.146 The Insolvency and Bankruptcy Code, 2016 is considered one of the important changes in business law after independence. It was created to resolve issues in the previous insolvency systems. To solve the problems IBC aimed to combine all the scattered laws into one system and created time bound process. It focused on maximising the value of company, protecting the interests of creditors and motivated people to start businesses. By giving the power to creditors IBC made the process flexible, faster, effective and introduced stringent timelines. Although the time taken to resolve the cases have been reduced from 4.3 years to 394 days in most cases and improved recovery rates as compared to earlier systems such as DRT, SARFAESI Act, and SICA challenges still continue to exist. Some of them are delays in resolving cases, increased number of cases ending in liquidation as compared to resolution, difference in treatment of creditors, low recovery, liquidation waterfall etc. The paper analyses whether IBC is able to achieve the balance between creditors and debtors. With the help of doctrinal and empirical approach the paper examines the judicial decisions (Essar steel, Swiss Ribbons, K. Sashidhar), structure of IBC, practical data and evidence. Further, legal- economic theories are also used (creditor bargain and stakeholder) to determine whether the more advantage is given to financial creditors, the impact on corporate governance and how people start their business. It also looks into how benefits and losses are distributed between operational creditors and society. The study highlights that while IBC has strengthened the rights of creditors and made businesses more responsible in taking loans or any risks, it also has created a difference between operational and financial creditors and has made people more cautious about starting or expanding a business. The paper highlights certain changes like giving protection to operational creditors, increasing the capacity of NCLT, making provisions for MSMEs.

EFFECTIVENESS OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016: A STUDY OF CREDITOR – DEBTOR BALANCE Read More »

ESSAR STEEL LEGACY: JUDICIAL ENFORCEMENT OF COMMERCIAL WISDOM IN PLAN APPROVALS AMID 2026 AMENDMENTS

Volume IV Issue I /

ESSAR STEEL LEGACY: JUDICIAL ENFORCEMENT OF COMMERCIAL WISDOM IN PLAN APPROVALS AMID 2026 AMENDMENTS Omkar Ashok Galatagekar, 2nd Semester Corporate Law, IT and Data Protection, Alliance University, Bangalore (India) Download Manuscript doi.org/10.70183/lijdlr.2026.v04.98 This paper discusses the development and application of the doctrine of commercial wisdom within Insolvency and Bankruptcy Code, 2016 (IBC) with reference to a landmark case in Committee of Creditors of Essar Steel India Limited (through Authorised Signatory) v Satish Kumar Gupta & Ors, (2020) 8 SCC 531 and cases that have happened thereafter, including 2026 changes. The research is now placed in the wider context of the historical changes in the insolvency regime within India which has changed into a resourceful, disaggregated, debtor-centric system, to a coherent, creditor-centric system that ensures value enhancement and a time-limited resolution. The main question this paper will analyse is the scope used by judicial authorities to interfere with the commercial decision making of the Committee of Creditors (CoC) when approving resolution plans. The proposed case will examine the legal framework on insolvency resolution, appraise the interpretation of commercial wisdom as applied by courts, and determine the effects of the recent legislative changes on the equilibrium between the freedom of creditors and protection of stakeholders. The approach taken is a doctrinal one, which is based on statutory measures, landmark judicial precedents, and secondary legal material. The most important provisions of the IBC such as Sections 7, 12, 30, and 31 are discussed with major case laws in order to comprehend the developing jurisprudence. Practical implications of the 2026 amendments in promoting transparency, accountability, and efficiency in the procedures are also taken into account in the study. As per the findings, the Essar Steel ruling has clearly cemented the primacy of the CoC commercial wisdom and placed a strong restriction of the judicial interference to legal compliance and the procedural irregularity issues. This has increased efficiency, minimized delays and increased investor confidence. The paper concludes by saying that although the doctrine of commercial wisdom is a requirement of an efficient insolvency regime, it has to be counterbalanced with sufficient safeguards to guarantee fairness and transparency. The amendments of 2026 are a positive move in this direction, and they seek to make accountability institutional, without compromising creditor autonomy.

ESSAR STEEL LEGACY: JUDICIAL ENFORCEMENT OF COMMERCIAL WISDOM IN PLAN APPROVALS AMID 2026 AMENDMENTS Read More »

A WAY TO RESOLVE THE CORPORATE INSOLVENCY UNDER THE IBC

Volume III Issue II /

A WAY TO RESOLVE THE CORPORATE INSOLVENCY UNDER THE IBC Akash Kumar, CIRP, Moratorium, Insolvency Resolution Professional, Committee of Creditors, Resolution Plan, Adjudicating Authority. Download Manuscript doi.org/10.70183/lijdlr.2025.v03.52 The IBC represents a major overhaul, unifying and revising laws related to corporate, partnership, and individual insolvency and restructuring under a defined timeline. The Corporate Insolvency Resolution Process (CIRP), introduced under the Insolvency and Bankruptcy Code (IBC) of 2016, is designed to assist financially troubled companies by promoting both equitable distribution of assets and potential business revival. This study explores the CIRP framework as outlined in the IBC, detailing its key provisions, procedures, and the eligibility criteria for stakeholders involved in the resolution process. The paper also delves into judicial interpretations of the CIRP, assessing its strengths and limitations. Furthermore, it evaluates the extent to which the CIRP meets its intended goals. The article offers insights into the CIRP’s role within India’s insolvency ecosystem and concludes with recommendations for reform.

A WAY TO RESOLVE THE CORPORATE INSOLVENCY UNDER THE IBC Read More »

THE ROLE OF COMMITTEE OF CREDITORS (COC) IN SHAPING RESOLUTIONS

Volume III Issue I /

THE ROLE OF COMMITTEE OF CREDITORS (COC) IN SHAPING RESOLUTIONS Nikhil Rawat, LL.M. (Corporate Banking & Insurance), Amity Law School, Noida (U.P.) Dr Amit Dhall, Assistant Professor, Amity Law School, Noida Download Manuscript doi.org/10.70183/lijdlr.2024.v03.32 The advent of the Insolvency and Bankruptcy Code, 2016 (IBC) in India marked a seminal shift in how financial distress is addressed. At the heart of this reform lies the Committee of Creditors (CoC), a body tasked with steering the Corporate Insolvency Resolution Process (CIRP). This paper critically examines the role of the CoC in shaping corporate resolutions, balancing creditor rights with debtor protections, and influencing the efficiency and outcomes of the insolvency process. Through an analysis of statutory frameworks, landmark judicial decisions, and practical implications, the paper reveals the evolving jurisprudence and real-world dynamics surrounding the CoC’s decision-making authority. It argues for a more nuanced understanding of commercial wisdom, transparency, and accountability, especially in light of the increasing scrutiny by courts and stakeholders. Type Information Research Paper LawFoyer International Journal of Doctrinal Legal Research, Volume III, Issue I, Page 787-806. Creative Commons Copyright This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. © Authors, 2024

THE ROLE OF COMMITTEE OF CREDITORS (COC) IN SHAPING RESOLUTIONS Read More »