EVOLUTION AND THEORETICAL FRAMEWORK OF INSOLVENCY RESOLUTION PROCESS IN INDIA AND THE UK

AUTHOR – RITIKA KUMARI, STUDENT AT AMITY UNIVERSITY, NOIDA

BEST CITATION – RITIKA KUMARI, EVOLUTION AND THEORETICAL FRAMEWORK OF INSOLVENCY RESOLUTION PROCESS IN INDIA AND THE UK, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 279-289, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The insolvency resolution processes in India and the UK reflect distinct legal frameworks shaped by their respective economic and judicial systems. This comparative study analyzes the key features, efficiencies, and challenges of insolvency mechanisms under India’s Insolvency and Bankruptcy Code, 2016 (IBC) and the UK’s Insolvency Act, 1986 (including subsequent reforms). While both jurisdictions prioritize creditor rights and business continuity, their approaches differ in structure, timelines, and stakeholder participation.

India’s IBC introduces a time-bound resolution process (180-330 days) administered by the Insolvency and Bankruptcy Board of India (IBBI), emphasizing the primacy of Committee of Creditors (CoC) and the exclusion of erstwhile management during proceedings. The UK’s regime offers multiple procedures—Administration, Company Voluntary Arrangements (CVAs), and Liquidation—with greater flexibility for debtor-in-possession models (e.g., pre-pack administrations). Judicial oversight is more decentralized in the UK, with courts playing a limited role compared to India’s National Company Law Tribunal (NCLT)-driven process.

Keywords: Insolvency Resolution, IBC, Creditor Rights, Cross-Border Insolvency