Evolution of Bankruptcy Legislation in India: A Comparative Analysis on its Historical Perspective

Abstract

Bankruptcy law introduced across the globe for recovery of debt because unpaid demand has
a bad impact on any country’s growth and economy. But the question is whether the word
‘Bankrupt’ well known to the common man, or it is just another vague legal term? Bankruptcy
can be defined simply as a condition when a person owes something from someone,
somebody, or group of somebody but unable to repay or clear its due. In India, before
Insolvency and Bankruptcy code 2016, there was no such complete legislation that completely
focuses or address bankruptcy and insolvency issues of the Country. It was introduced to
tackle the situation. Unfortunately, till now nothing seems to work. In this article, I have tried
to analyse this legislation to identify why the numbers of debt defaulter are increasing and to
find what could be the reason for their escape from the loophole of this code.