JURJ

Arbitration: A Viable Option for Insolvency Matters

Author: Parul

Abstract:

Insolvency and Bankruptcy laws are an integral part these days of any nation. Every country wants its Insolvency and Bankruptcy laws to find the best way via which the distressed company can be put back to its normal position. A good insolvency and bankruptcy law is a need to maintain the economy of the country. India had enacted Insolvency and Bankruptcy Code, 2016 with an objective i.e. effective revival and reorganisation of the company. Judiciary through its various amendments, and judicial precedents had brought changes in the code keeping into consideration the growing economies. IBC Code though is a success, but it has left one important thing within its ambit i.e. arbitration as a mechanism for resolving insolvency disputes. Though Arbitration is still evolving in India, but the judgments delivered by court has still left insolvency matters out of arbitration proceeding. Moreover, as the present Code focus on creditor in possession approach it must give viable option to creditor whether he wants to resolve the insolvency disputes judicially or through any other mode. Author vide way of this article highlights International scenario of usage of Alternative Dispute Resolution in Insolvency matters and then author by way of this article presents the roadmap where India is lying in this aspect of adopting ADR in IBC.