The Novel Coronavirus and its Aftermath on the Insolvency system

Abstract

It’s been more than one year since the nation experienced the distressing phase of the coronavirus pandemic which has produced havoc worldwide and its impact in India has been hugely disruptive. The pandemic has engendered a crushing blow to the economy as a whole and has placed businesses in almost all jurisdictions under severe financial struggle. Even the World Bank and credit rating agencies have denigrated India’s growth for the fiscal year 2021 with the lowest figures that India has seen in three decades since its economic liberalization in the 1990s. To revamp the Indian Insolvency and Restructuring laws, the government came up with various steps to combat the Covid-19 pandemic, wherein the Indian Insolvency and Bankruptcy Code, 2016 experienced certain developments. In this paper, the author has described the state of the Insolvency system in the pre-Covid-19 period, assessed the potential impact of the Covid-19 pandemic on the Insolvency laws in India, analysed the policies that have been announced so far by the Central Government, the Insolvency and Bankruptcy Board of India as well as the Reserve Bank of India to ameliorate the economic shock and lastly the author has thrown light on the present scenario of how the Indian Insolvency Law has responded to the Covid-19 pandemic.