This short article is written by K. RANJITH, a student of School Of Excellence In Law, TNDALU.
ABSTRACT:
India’s approach to corporate insolvency resolution has evolved from the framework established under the sick industrial companies act, 1985 to the current system governed by the Insolvency and Bankruptcy Code, 2016. The board of industrial and financial reconstruction was created to facilitate the revival of sick industrial companies. However, its effectiveness was compromised due to more delays, complicative procedures, and insufficient participation from creditors. The Insolvency and Bankruptcy Code established the National Company Law Tribunal as the adjudicating authority, leading to a streamlined resolution process with fixed timelines. The shift from BIFR to NCLT was intended to improve asset value and promote economic stability. This article critically examines the transformation from BIFR to NCLT and it also evaluates the impact on companies’ insolvency resolution in India.
KEYWORDS:
Corporate Insolvency, BIFR, NCLT, Revival, Sick industries, Resolution.
