Pecking Order

Amita Chohan, an English Barrister in Locke Lord’s London office, co-authored an article for India Business Law Journal examining the tensions that arise in respect of the Insolvency and Bankruptcy Code 2016 when a state government assumes that it takes precedence over other creditors in relation to a corporate debtor’s assets. Chohan and her co-author also outline lessons to be learned from the English legal position on insolvency and taxes.

The authors conclude “Until any reforms are suggested and debated by parliament and state legislatures, any deference provided to state governments during the insolvency process will undoubtedly throw the purpose and implementation of the code into incredibly uncertain territory.”

To read the full article, click here.