DEBT RESOLUTION MECHANISMS: A CROSS-JURISDICTIONAL ANALYSIS OF INSOLVENCY LAWS

Abstract

The Code is a landmark legislation aimed at clearing of bad debts and preventing debtors from delaying recovery proceedings by creditors for years on end. Prior to introduction of the Code, it took several years, on average, for creditors to recover the dues. The Code has been envisaged as a panacea for the problem of bad debt in the country. The Code affects debtors and creditors all over the country while also having repercussions for the employees of the debtors as well as parties that the debtors have entered transactions with. The successful implementation or failure of the Code will have a profound impact on the economy of the country and its development. Thereby, the Code must be modified and improved as the Code, has the potential to be a significant boon for the economy. In case of large companies undergoing insolvency, the ripple effects can affect millions of people including employees, clients, suppliers etc. This paper endeavours to study and analyse laws of the United States of America (U.S.A.), the United Kingdom (U.K.) with India concerning debts and recovery. It focuses on the specific major laws in these countries concerning insolvency.