AN CRITICAL ANALYSIS ON CREDITORS LEGAL RIGHTS UNDER IBC,2016

AUTHOR  – SANJAIRAAJ.A.S, STUDENT AT SAVEETHA SCHOOL OF LAW, SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCE (SIMATS), SAVEETHA UNIVERSITY, CHENNAI-600077

BEST CITATION – SANJAIRAAJ.A.S, AN CRITICAL ANALYSIS ON CREDITORS LEGAL RIGHTS UNDER IBC,2016, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (10) OF 2025, PG. 163-179, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT:

The Insolvency and Bankruptcy Code (IBC), 2016, is a landmark reform in India’s legal and economic landscape, designed to address the longstanding issues of debt recovery and insolvency resolution. This research critically analyzes the legal rights of creditors under the IBC, focusing on the mechanisms that empower them to initiate insolvency proceedings and secure their dues. It explores the operational dynamics between financial and operational creditors, examining the implications of the priority given to different classes of creditors in the distribution of proceeds from insolvency resolution or liquidation. The study also scrutinizes the role of the Committee of Creditors (CoC), particularly the extent of its powers in decision-making during the Corporate Insolvency Resolution Process (CIRP). The research method followed here is empirical research. The sample size of 221 samples have been taken out of which is taken through convenient sampling. The sampling frame taken by the researcher using the google forms in and around Chennai. The independent variables used are age, gender, educational qualification, Income and Marital status. The dependent variables used are the primary objective of the Insolvency and Bankruptcy code(IBC) the transparency and accountability of the insolvency resolution process as mandated by IBC 2016.The statistical tools used in the research were simple bar charts and chi Square test.

KEYWORDS: Creditors rights, Financial Creditors, Operational Creditors, Insolvency and Bankruptcy Code (IBC) ,Debtor.