When companies face a state of extreme financial agitation they look for ways to detect and remedy failures at a sufficiently early stage and in case failures are inevitable to minimize their impact. It is essential for a country to have an appropriate and mature legal system of checks and balances in place. An effective insolvency and recovery framework not only helps in minimizing transaction and opportunity costs and maximizing the value of distressed assets but it also inspires confidence in investors and stimulate the growth of secondary market in debt. In this light the paper shall study the practice and theory associated with various mechanisms available in India for insolvency and restructuring. The paper shall present a comparative survey of insolvency and restructuring laws in India, and present a critique on the Indian Insolvency protection system apart from discussing current trends. This paper shows that there is no single comprehensive and integrated policy on corporate bankruptcy in India.
Bankruptcy, Insolvency, Restructuring
