Debtors’ Paradise Lost

The Supreme Court in the Swiss Ribbons (2019) case said that before 2016 the Indian economy was a “debtors’ paradise”. The Swiss Ribbons Pvt Ltd-versus-Union of India case paved the way to the Insolvency and Bankruptcy Code (IBC), 2016.  It has swiftly brought in the concept of ‘commercial justice’ with legislation that brought about a revolutionary change in the landscape of Corporate India, which is the theme of my book titled, Emergence of Commercial Justice: Insolvency & Arbitration, published by Bloomsbury. Earlier, a large section of corporate management ran companies like their sole-proprietorships. However, when it came to debt repayment, they would use the Solomon principle of a company being a separate legal entity and would smartly attribute the default to the corporate vehicle. Delays In Resolution – The earlier legislation for...