For instance, the World Bank Doing Business Project9 ranked 190 countries worldwide in terms of the strength of legal rights and resolving insolvency framework.10 The World Bank measures have been used widely in bankruptcy, creditor rights, and the law and finance literature. [...] Insolvency laws ensure that the resources of troubled enterprises are reemployed in the system in the most efficient form or closed at the earliest, which is crucial for the economic performance of society.30 4 Insolvency laws have also been shown to be associated with a higher level of investments and positive for a country’s GDP.31 Implementing effective reorganization procedures (saving viable. [...] Table 2 lists some of the critical objectives of bankruptcy laws as per UNCITRAL: Table 2: Key Objectives of Bankruptcy Laws as Per UNCITRAL 1 Provision of certainty in the market to promote efficiency and growth 2 Ensuring a transparent and predictable insolvency law that contains incentives for gathering and dispensing information. [...] The World Bank RII measures whether countries have effective insolvency procedures and recoveries (discounted for time, cost, and outcomes) and ranks countries taking the average of two measures (strength of insolvency framework and recoveries) as a proxy for efficiency of insolvency regime. [...] 15 However, progress remains slow, and there is a significant backlog of undisposed applications.98 Hence, while the IBC has enabling provisions in place for value protection, it faces significant efficiency challenges in the context of the timelines of Corporate Insolvency Resolution Process(CIRP), clearance of avoidance applications, and the provision of funds during bankruptcy to maintain the g.
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Table of Contents
- Indias Experience in Insolvency Laws Learnings for the Global South 1
- Indias Experience in Insolvency Laws Learnings for the Global South 3
- Introduction 5
- Methodology 7
- Insolvency Laws and their Role in Development 8
- Insolvency Laws their Objectives and Design 10
- Insolvency Laws in the Global South 12
- Indias Experience with Insolvency Laws 16
- Resolutions 18
- Protection of Value 19
- Facilitation of Credit 20
- Promotion of Entrepreneurship 20
- Balancing Interests of Stakeholders 20
- Can India be a Model for the Global South 21
- Need for a Distinct Focus 22
- Role of Alternate InstitutionsFactors 23
- Need for more Tailor-madeAlternate Solutions 23
- Learnings for the Global South 25
- Overall Perspective 25
- Institutional Infrastructure Four Pillars 26
- A wide pool of Insolvency Professionals 26
- Regulator IBBI 26
- Adjudicating Authority AA 27
- Information Utility IU 27
- Cross-Border Insolvency 27
- Conclusion 28
- RIS Discussion Papers 41
