The enactment of the Insolvency and Bankruptcy Code, 2016 (IBC) represents one of the most significant legal and economic reforms in contemporary India. Prior to the introduction of the Code, insolvency regulation in India was governed by multiple fragmented statutes that resulted in procedural delays, inefficient resolution of corporate distress and low recovery rates for creditors. The Insolvency and Bankruptcy Code established a unified and time-bound framework for insolvency resolution, thereby strengthening the institutional foundations of India’s financial system. This paper examines the evolution of insolvency laws in India and analyses the institutional and legal framework introduced under the Insolvency and Bankruptcy Code. The study also explores the role of judicial interpretation in shaping the implementation of the Code through landmark decisions of the Supreme Court of India. Furthermore, the paper evaluates the contribution of the insolvency framework to financial discipline, corporate governance and the stability of India’s banking sector. In the broader context of the national developmental vision of Viksit Bharat 2047, the study argues that an effective insolvency regime is essential for sustaining economic growth and promoting efficient capital allocation. By facilitating the timely resolution of financial distress and encouraging responsible corporate behaviour, the Insolvency and Bankruptcy Code strengthens investor confidence and enhances the efficiency of financial markets. The paper concludes that continued institutional reforms and improvements in insolvency governance will be critical for ensuring that the Code remains an effective instrument for economic transformation and contributes meaningfully to India’s journey toward becoming a developed nation by 2047. Keywords : Insolvency and Bankruptcy Code; Corporate Insolvency Resolution Process; Financial Discipline; Corporate Governance; Non-Performing Assets; Insolvency Law Reforms; Economic Governance; Financial Stability; Viksit Bharat 2047.
Miss. Rupali Gole (Fri,) studied this question.
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