Report of the 1st IBBI Working Group on Individual Insolvency
Operationalising the Insolvency and Bankruptcy Code for resolution of personal insolvencies
A year after the Insolvency and Bankruptcy Code, 2016 (Code) was enacted, the Insolvency and Bankruptcy Board of India constituted a Working Group to recommend the strategy and approach for implementation of the Code’s provisions dealing with personal insolvency in relation to (i) personal guarantors to corporate debtors, and (ii) individuals having businesses, and submit a report along with the draft rules and regulations.
The Working Group released its report in August, 2017 and made the following recommendations, amongst others-
(i) creating infrastructure to enable mediation in personal insolvency cases;
(ii) enabling debt counselling of debtors who are going through insolvency or bankruptcy processes under the Code to avoid repeat defaults; and
(iii) taking steps to promote financial literacy and reduce the stigma associated with individual insolvency.
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About the Researchers
Shreya is a Senior Resident Fellow, and leads the work at the intersection of law, finance and development at Vidhi. She is currently focusing on independent research work relating to financial inclusion, tech and corporate governance. She has worked on several engaged projects with the International Financial Services Centres Authority, Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India. Shreya completed her LLB from National Law University, Jodhpur in 2012 and LLM from Queen Mary, London on a Chevening scholarship in 2019. She also worked with the European Bank for Reconstruction and Development, London in 2019. Prior to joining Vidhi in 2014, she worked as an Associate at Luthra & Luthra Law Offices, New Delhi.
Aishwarya was a Senior Resident Fellow working in the area of Corporate Law and Financial Regulation. At Vidhi, she has primarily worked on engaged/commissioned projects from various ministries, statutory authorities and regulators, where she provides legal research and drafting support at various stages of law-making. Aishwarya works on a variety of legal and regulatory matters and allied issues in public policy, chiefly related to insolvency laws, competition laws and corporate governance laws. Aishwarya graduated with a B.A. LL.B (Hons.) from Jindal Global Law School (JGLS) in 2017. During her time there she worked on two human rights reports and attended specialised courses in Advanced Corporate Law and Competition Law. She has also interned under Senior Advocate Ramji Srinivasan, in Avantha Holdings Ltd. and in leading law firms.
