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 Lead, Law, Finance and Development. Her areas of interest are company law, insolvency law, corporate governance and responsible business conduct, fintech and financial inclusion. At Vidhi, she has worked on a diverse range of projects including research and drafting of the Insolvency and Bankruptcy Code, 2016 and consequent amendments and subordinate legislation, review of offences under the Companies Act, 2013 and drafting of the National Action Plan on Business and Human Rights. Shreya completed her B.B.A. LL.B. (Hons.) from the National Law University, Jodhpur in 2012 and her LLM from the Queen Mary University of London on a Chevening Scholarship in 2019, where her dissertation focused on peer-to-peer lending. She also worked as a Legal Consultant in the Financial Law Unit of the Legal Transition Team at the European Bank for Reconstruction and Development, London in 2019. Prior to joining Vidhi, she worked as an associate at Luthra & Luthra Law Offices, Delhi in the mergers & acquisition and real estate team.
Aishwarya is a Research 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.
