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VOL. 11, ISSUE 3 (2026)
Restructuring of corporate entities under insolvency regime
Authors
Vishnupriya Daga, Sunil Asopa
Abstract
The IBC has been considered as powerful insolvency mechanism with two
purposes. It safeguards those businesses that are practical or viable and help
way out those businesses which are no longer important. In India, Insolvency
and Bankruptcy Code (IBC 2016) is framed with the purpose to become a savior.
Before IBC was introduced, India didn’t have any technique to protect
businesses or when and how to take exit from them. IBC aids to determine and
settle insolvency wherever possible with the help of market-directed time bound
mechanism or exit where necessitates. The IBC addresses corporate restructuring
for all type of businesses whether it is a corporate, partnership firms and
individuals. A CD is a person who has made default in payment of dues or debts.
IBC furnishes an exit system for those corporate persons who have not
defaulted, by way of voluntary liquidation. IBC provisions for corporate
restructuring starts to apply from 1st December 2016. This article mainly deals
with insolvency resolution and corporate restructuring of CDs. In IBC rescue
method is attainted through CIRP while exit mechanism is done with the help of
a liquidation process. Therefore, this process of insolvency resolution is done
in two stages. In the first stage resolution professional tries to solve the
default and reorganize the corporate through CIRP but if it is not resolved
through CIRP then the CD is liquidated in the second stage. IBC proposes
associated institutional infrastructure and built a new regulatory ecosystem
which helps in reducing delays and transaction cost and to increase the
efficiency of process. This effective working is very crucial for attaining the
objectives of IBC.
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Pages:48-52
How to cite this article:
Vishnupriya Daga, Sunil Asopa "Restructuring of corporate entities under insolvency regime". International Journal of Advanced Research and Development, Vol 11, Issue 3, 2026, Pages 48-52
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