Insolvency and Bankruptcy Code 2016: revisiting with market reality

Purpose This paper aims to revisit the Indian experience on corporate bankruptcy law to answer "why Indian corporate insolvency law structured differently from a manager-driven (pre-Insolvency Code) to manager-displacing model (post-Insolvency Code)?" Design/methodology/approach This paper is qualitative in nature. The paper analyses the prevailing theoretical wisdom in corporate insolvency law in India and examines the practices of Indian bankruptcy regime. Findings The authors argued, considering the corporate ownership composition, the Insolvency and Bankruptcy Code 2016 will not accomplish the intended objective (i.e. the "creditor primacy"). The findings refute with the evolutionary theory, i.e. debt and equity both will tend towards dispersion in outsider system of governance. Originality/value This paper put forward the imprint that Indian corporate insolvency regime is manager-displacing under Law on Books and manager-driven under Law on Practice.