A CRITICAL REVIEW OF CORPORATE INSOLVENCY RESOLUTION PROCESS UNDER INDIA’S INSOLVENCY AND BANKRUPTCY CODE, 2016 IN RESOLUTION OF DISTRESSED ASSETS AND CONTAINMENT OF NON-PERFORMING ASSETS AND REDUCTION IN OCCURRENCE OF FRAUDS OF BANKS IN INDIA

Abstract

The paper describes the Insolvency and Bankruptcy Code, 2016 of India and its role in resolution of distressed assets and how and in what manner it has helped in containing Non-performing assets and also how and to what extent it has contributed to reduction in occurrence of frauds in banks in India and appraises its efficiency against a number of benchmarks. The goal of the Code is to consolidate numerous legislations on the subject and provide a single, unified and vital platform for revival and/or liquidation of corporate and non-corporate bodies and self- proprietors. The main and substantial policy and procedural changes envisaged in the Code targets to salvage the movable and immovable assets engaged in the distressed organizations in a time-bound manner to protect the interests of not only creditors but also employees, workers, government dues and others involved. An attempt has been made to understand as to how far the corporate insolvency resolution process under the code is effective for resolving distressed assets and containing non-performing assets and occurrence of frauds in banks of India and why it is being recognized that bankruptcy law in India is not enough to manage the bad loan situation in India and more action is required on the NPAs than what is available through the Bankruptcy Code.