Bankruptcy Law Case Study

9715 Words39 Pages
Dual Insolvency Laws V/s Single Bankruptcy Law

A Case of India

This paper shows the incidence that corporate failure (Insolvency) has adverse implications on various stakeholders, creditors, suppliers, employees and customers. It also has a ripple effect on the economy, affecting the solvency of many other businesses. Therefore the objective of this paper is to analyze the current Insolvency Laws in India and also to compare the Insolvency Laws practiced in India and U.S. This paper examines the suitability of adapting Single Bankruptcy Law in India and also recommends the areas which India has to focus to meet the International Standards of Insolvency.

Index
Introduction……………………………………………………………………….….2
Review of Literature…………………………………………...........................18
…show more content…
Technically, bankruptcy occurs when a court has determined insolvency, and given legal orders for it to be resolved.
Bankruptcy is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency.
Insolvency describes a situation where the debtor is unable to meet his/her obligations. Bankruptcy is a legal maneuver in which an insolvent debtor seeks relief.
In some countries, including the United Kingdom, bankruptcy is limited to individuals, and other forms of insolvency proceedings (such as liquidation and administration) are applied to companies. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings.
Bankruptcy fraud is a white-collar crime. While difficult to generalize across jurisdictions, common criminal acts under bankruptcy statutes typically involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing or redistribution arrangements. Falsifications on bankruptcy forms often constitute perjury. Multiple filings are not in and of themselves criminal, but they may violate provisions of bankruptcy law. In the U.S., bankruptcy fraud statutes are particularly focused on the mental state of particular actions. Bankruptcy fraud is a federal crime in the United
…show more content…
• Bankruptcy laws which prevailed in the earlier times were a species of criminal law and bankrupts under that law were regarded as criminal offenders. The treatment to which they were subjected was cruel and inhuman. The present bankruptcy laws are far more humane and by the end privileges are not only conferred by creditors but also the bankrupt or debtor (Blackstone et.al)
• Thomas Jackson and Douglas Baird (1984; 1990) in their individual and collaborative papers advanced the proposition that the US system of corporate insolvency law was primarily aiming towards the maximization of creditors’ returns.
Put very shortly: Jackson (1982; 1986) argued that insolvency law was no more than a collective debt collection

More about Bankruptcy Law Case Study

Open Document