How Does The Corporate Insolvency Code In India Measure With The UK?

A vast majority of the legal systems in the Commonwealth countries are founded on English common law. Hence, it is not a surprise that the Code closely mirrors the UK Insolvency Regime. The Bankruptcy Law Reforms Committee (BLRC) decided to move away from the existing "debtor in possession" regime to a "creditor in control" regime; the UK's creditor in control regime is one of the most established and recognized globally.

Although the Code is based on the UK structure, the BLRC has identified key aspects of the legislation that may not work in an Indian scenario, and therefore appropriately customized it for India. Some of the key similarities and differences between the Insolvency Law in the UK and the Code are detailed below: