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Reforming personal insolvency law in India

Author

Listed:
  • Siva Ramann

    (Comptroller and Auditor General of India)

  • Renuka Sane

    (Indian Statistical Institute)

  • Susan Thomas

    (Indira Gandhi Institute of Development Research)

Abstract

In India, we have paid more attention to the restructuring and winding up processes for companies. In contrast, the legal framework for insolvency in India is rooted in century old laws. In this paper, we motivate the need for a personal bankruptcy law, and study the existing Indian legal framework in the form of the Presidency Towns Insolvency Act, 1909 (PTIA) for Calcutta, Bombay and Madras and the Provincial Insolvency Act, 1920 (PIA). We also study the system in the UK and Australia, and draw lessons for reform for India.

Suggested Citation

  • Siva Ramann & Renuka Sane & Susan Thomas, 2015. "Reforming personal insolvency law in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2015-035, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2015-035
    as

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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2015-035.pdf
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    References listed on IDEAS

    as
    1. Abhijit V. Banerjee & Esther Duflo, 2014. "Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 572-607.
    2. Rajan, Raghuram G & Zingales, Luigi, 1998. "Financial Dependence and Growth," American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
    3. Fan, Wei & White, Michelle J, 2003. "Personal Bankruptcy and the Level of Entrepreneurial Activity," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 543-567, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Personal insolvency resolution; bankruptcy resolution; entrepreneurs; Sole proprietors; personal credit;
    All these keywords.

    JEL classification:

    • K35 - Law and Economics - - Other Substantive Areas of Law - - - Personal Bankruptcy Law

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