Insolvency and bankruptcy code

The Indian framework for resolving corporate insolvency, under which a resolution professional runs the company and a committee of financial creditors decides its fate.

The process is time-bound and ends either in a resolution plan approved by the creditors or in liquidation. Its equivalent in the United States is Chapter 11 for reorganisation, where existing management stays in possession, and Chapter 7 for liquidation.

One feature reshapes the textbook priority stack. Government dues rank below unsecured financial creditors, which was a deliberate policy choice and changes the recovery arithmetic.

Realised recovery rates and time to resolution are published by the insolvency regulator, and the Indian series is short. Treat any historical average as provisional.