An International Perspective of Insolvency and Bankruptcy Laws
- Indian Journal of Political Science
- 85(1), Jan-Mar, 2024: p.149-156
Indian insolvency laws are influenced by the United Kingdom's code, offering insight into our framework. The United States, a global economic leader, has an effective insolvency code. However, addressing commercial distress is a shared challenge in India and other developing nations. While developed countries may shut down unviable units, it may not be feasible in India due to potential job losses and economic repercussions. At this point, it's essential to explore practices in other jurisdictions to guide reforms in the Indian insolvency regime. Two countries, the USA and the UK, have been chosen for comparison due to their well- established insolvency laws. The comparison is pertinent as the U.S. law predates the Indian statute and has become a standard in insolvency, while the UK's legal framework has long influenced various aspects of Indian law. The UNCITRAL Legislative Guide on Insolvency is also considered, serving as advisory for countries crafting their insolvency laws.- Reproduced