A Primer On Pre-Packaged Insolvency Resolution Process Introduced Through The Insolvency And Bankruptcy Code (Amendment) Ordinance, 2021

1. INTRODUCTION

The Indian insolvency law framework before the year 2016 was highly fragmented and scattered across several legislations that referred matters to different judicial fora. These enactments include the Presidency Towns Insolvency Act, 1909, the Provincial Insolvency Act, 1920, the Sick Industrial Companies Act, 1985, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and the Companies Act, 2013. The multiplicity of adjudicating bodies that handled insolvency cases gave rise to a cobweb of jurisdictional issues and delayed the insolvency resolution process, often leading to the debtor losing its economic value over time. The Indian economy faced a crisis when the non-performing assets were piling up due to the failure of debt recovery laws, leading to more companies shutting their business. In such circumstances, a need was felt