Analytical Study of Insolvency and Bankruptcy Code 2023 with reference to Stakeholders Rights Perspectives

Abstract

This study is an attempt to explore the working of the Insolvency and Bankruptcy Code (IBC) 2023 and to focus on the stakeholders and to what extend their rights are upheld under IBC. It explores: Why the bankruptcy regime has been shaped the way it is; the conflict between interest of justice of stakeholders and interest of creditors – who are the system's preferred player when according to Indian statute. The nature of the study is descriptive and analytical because evaluations are carried out about the impact of the Code on creditors, debtors, workers, the shareholders and regulators from different dimension such as legislative provision, the case law/empirical evidence. Results come back suggesting that the IBC 2023 provides for a higher recovery rate with an enhanced creditor oversight, but is likely to result in marginalization non-creditor parties. Weights and counterweights in the judgments of the Judges and protection gaps of vulnerable groups still exist. According to the report, a variety of initiatives are needed, including greater scrutiny of the regulators, more transparency for shareholders and more protection for employees. Emphasis on the policy implication to develop an equitable development and achieve financial stability is created and the comparison is made with Indian and Global bankruptcy regime.