About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


8 RGNUL Fin. & Mercantile L. Rev. 98 (2021)
Group Insolvency: Time to Stop Relying on the Judiciary to Fill a Legislative Lacuna?

handle is hein.journals/rlfladme8 and id is 409 raw text is: V. GROUP INSOLVENCY: TIME TO STOP RELYING ON THE JUDICIARY TO FILL A LEGISLATIVE LACUNA? - Varada Jahagirdar and Sanjhi Agarwal* ABSTRACT The Insolvency and the Bankruptcy Code, 2016 (IBC), though a comparatively new legislation of the country has developed a massive jurisprudence in merely five years. Considering the intricacies involved in the insolvency process, IBC has been subjected to various amendments and changes, and yet the legislation has failed to accommodate for more complicated transactions like cross-border insolvency and group insolvency matters. Exclusion of such areas have provided for a major lacuna in the scope of IBC and led to academic, judicial and legislative debates and discourses. Groups and conglomerates are becoming exceedingly popular and play an integral role in the national and the global corporate world. However, the lack of provisions addressing group insolvency resolution provision in the IBC, have forced and promoted the need of judicial interpretations and widening of scope of the existing provisions. Judicial interpretations though important in places of legislative lacuna, has led to conflicting interpretations of the statute. The question or the problem that remains with introduction of the provisions regarding group insolvency is whether the corporate veil can be pierced by force of law when there is no public interest or malafide intention on the part of the corporate entity. The paper seeks to understand the application and scope of group insolvency proceedings in various jurisdictions and specifically in India, and attempts to answer the question that whether it is time to introduce the provisions regarding the same in our domestic legislation and dwells on the aspects required to be kept in mind before such addition and inclusion. I. Introduction.......................................99 A. W hat is a Group and Group II. Need for Group insolvency provisions Insolvency?.....................................101 .......................................101 B. Need for Such Provisions in legal proceedings.....................................104 * The authors are fourth-year students of Corporate Law Hons. at Institute of Law, Nirma University, Gujarat. Views stated in this paper are personal.