Group Insolvency in India: - Analyzing the Definition of Group and Need of Redefining

Abstract

India is the fifth largest economy universally, as per the data of 2023-2024 the country had 26,63,016 registered companies at the end of 2023-2024 financial year. It is pertinent to note that economic growth is somewhere dependent on the smooth working of these companies. Insolvency and Bankruptcy code 2016 aimed at resolving the insolvent companies. India has a very dependent market; companies are dependent for their projects on other companies. Failure of a company impacts others company too. IBC deals with insolvency of the corporate bodies but in case of group insolvency of companies it has no provisions so far. CBIRC report has identified some challenges and a way ahead to deal group insolvency cases. This article will analyze the definition of ‘Group’ for the purpose of insolvency proceedings. How can it be interpreted and expanded to get the maximum benefit for the companies.