{"id":7907,"date":"2021-04-29T10:48:56","date_gmt":"2021-04-29T10:48:56","guid":{"rendered":"http:\/\/pravnizapisi.rs\/?page_id=7907"},"modified":"2021-11-28T21:31:17","modified_gmt":"2021-11-28T21:31:17","slug":"7907-2","status":"publish","type":"page","link":"https:\/\/www.pravnizapisi.rs\/en\/pravni-zapisi-2-2020\/7907-2\/","title":{"rendered":""},"content":{"rendered":"

PRAVNI ZAPISI \u2022 Year XI \u2022 No. 2 \u2022 pp. 580-619<\/p>\n

REMEDYING THE DEFECTS IN INDIA\u2019S CREDIT AND INSOLVENCY FRAMEWORKS WITH ADAPTED SOLUTIONS FROM THE ANGLO-AMERICAN LEGAL SCHOLARSHIPS<\/strong><\/h3>\n
\"\"<\/a>
Language: English<\/figcaption><\/figure>\n

Prof. dr Williams C. Iheme
\n<\/strong>LLB, LLM, SJD., Associate Professor of Law,
\nCenter for International Trade and Economic Laws, O. P. Jindal Global University
\ne-mail: wciheme@jgu.edu.in<\/a>
\nwilliamsiheme@gmail.com<\/a><\/h4>\n

.<\/span><\/p>\n

.<\/span><\/p>\n

Pravni zapisi, No. 2\/2020, pp. 580-619<\/p>\n

Original Scientific Article<\/p>\n

DOI<\/strong>: 10.5937\/pravzap0-28377<\/a><\/p>\n

KEY WORDS<\/strong>
\n<\/span>credit, collateral, debt, security, business rescue, insolvency, creditor, debtor, law reform.<\/p>\n

ABSTRACT<\/strong>
\n<\/span>The law governing credit transactions in India is compartmentalized and concomitantly poses difficulties to contractual parties and access to credit: the overall effect of this is already being felt owing to the country\u2019s low rank on the \u2018getting credit\u2019 indicator of the World Bank\u2019s Ease of Doing Business Report 2020. The Insolvency and Bankruptcy Code 2016 (Code), being almost a mirror-image of the English Insolvency Act 1986, has some inherent defects that are incompatible with the local conditions vis-\u00e0-vis access to credit and business rescue. Some of these defects arguably emanate from the Code\u2019s unfair categorization of creditors into the \u2018operational\u2019 and \u2018financial\u2019 types, and the ensuing confusion as was witnessed in the Supreme Court\u2019s Home Buyers\u2019 case in 2019. Strangely, financial creditors enjoy some Code-given preferential treatments over operational creditors including the right to constitute committees of creditors in voting and confirming business rescue plans. The insolvency resolution process of the Code is incompatible with the fact that over 90% of the companies doing business in India are SMEs and family-owned. The crushing financial weight of insolvency resolution processes is foreseen to gradually cannibalize these SMEs and cause a sharp rise in the unemployment rate. The article diagnoses a number of defects in the credit and insolvency systems of India, and proposes transplantable solutions from the English system, the U.S. Chapter 11, and Article 9 of the Uniform Commercial Code.<\/p>\n","protected":false},"excerpt":{"rendered":"

PRAVNI ZAPISI \u2022 Year XI \u2022 No. 2 \u2022 pp. 580-619 REMEDYING THE DEFECTS IN INDIA\u2019S CREDIT AND INSOLVENCY FRAMEWORKS WITH ADAPTED SOLUTIONS FROM THE ANGLO-AMERICAN LEGAL SCHOLARSHIPS Prof. dr Williams C. Iheme LLB, LLM, SJD., Associate Professor of Law, Center for International Trade and Economic Laws, O. P. Jindal Global University e-mail: wciheme@jgu.edu.in williamsiheme@gmail.com . . Pravni zapisi, No. 2\/2020, pp. 580-619 Original Scientific Article DOI: 10.5937\/pravzap0-28377 KEY WORDS credit, collateral, debt, security, business rescue, insolvency, creditor, debtor, law reform. ABSTRACT The law governing credit transactions in India is compartmentalized and concomitantly poses difficulties to contractual parties and access […]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":6978,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-article.php","meta":{"footnotes":""},"class_list":["post-7907","page","type-page","status-publish","hentry"],"yoast_head":"\n- Pravni Zapisi<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pravnizapisi.rs\/en\/pravni-zapisi-2-2020\/7907-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"- Pravni Zapisi\" \/>\n<meta property=\"og:description\" content=\"PRAVNI ZAPISI \u2022 Year XI \u2022 No. 2 \u2022 pp. 580-619 REMEDYING THE DEFECTS IN INDIA\u2019S CREDIT AND INSOLVENCY FRAMEWORKS WITH ADAPTED SOLUTIONS FROM THE ANGLO-AMERICAN LEGAL SCHOLARSHIPS Prof. dr Williams C. Iheme LLB, LLM, SJD., Associate Professor of Law, Center for International Trade and Economic Laws, O. P. Jindal Global University e-mail: wciheme@jgu.edu.in williamsiheme@gmail.com . . Pravni zapisi, No. 2\/2020, pp. 580-619 Original Scientific Article DOI: 10.5937\/pravzap0-28377 KEY WORDS credit, collateral, debt, security, business rescue, insolvency, creditor, debtor, law reform. 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Iheme LLB, LLM, SJD., Associate Professor of Law, Center for International Trade and Economic Laws, O. P. Jindal Global University e-mail: wciheme@jgu.edu.in williamsiheme@gmail.com . . Pravni zapisi, No. 2\/2020, pp. 580-619 Original Scientific Article DOI: 10.5937\/pravzap0-28377 KEY WORDS credit, collateral, debt, security, business rescue, insolvency, creditor, debtor, law reform. 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