Behavior Of Creditors And Involved Stakeholders In The Corporate Insolvency Resolution Process (CIRP) In India: An Economic Perspective

Publication Date

2024

Document Type

Forthcoming Work

Abstract

India's Insolvency And Bankruptcy Code (IBC) has long sought to improve the efficiency of its resolution procedure along with the overall welfare of key stakeholders. In order to achieve these goals, it has introduced the Corporate Insolvency Resolution Process (CIRP) as a group solution mechanism in insolvency cases. While there are numerous studies that focus upon procedural and substantive aspects of this process, the CIRP's successes have been largely ignored. As such, this study fills a yawning gap in the literature on the IBC and CIRP.
Through this study, the authors also aim to develop a comprehensive economic model that identifies the influence of CIRP on creditors' behaviour and some of its downstream impacts in the real world. The study's methodological approach will employ a range of economic tools, and theories, in order to provide useful insights about the CIRP process. Moreover, the suggestions provided in this article may mitigate sub-optimal outcomes for key stakeholders that arise from current laws and the observed behaviour of creditors.

Publication Title

Law and Economics Yearly Review

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