UNPACKING THE PRE-PACK – A FRESH INSOLVENCY RESOLUTION PROCESS ARRIVES IN INDIA

Abstract

The recent amendment of the Insolvency and Bankruptcy Code, 2016, that was promulgated by the President of India in August 2021, is being viewed as the most prominent landmark change within the entire insolvency procedure as it has introduced a highly anticipated and wholly new scheme/procedure. The pre-packaged insolvency resolution process and the essential aims of this process are to bring in increased efficiency in terms of time, money, and cost to stakeholders, and is also a comparatively less invasive regime in aiding micro, small and medium businesses and enterprises. The following paper attempts to comprehensively discuss and elaborate on this new regime. Firstly, the author discusses the context in which such regime has been enacted, followed by a detailed comparative analysis of the existing international regimes. Furthermore, a detailed descriptive analysis of the procedure and a comparison of the new process with the older regime of Corporate Insolvency Resolution Process is undertaken. In conclusion, this paper highlights the potential challenges and issues that this new regime could face in the future.