The insolvency and Bankruptcy Code was operationalised in the year 2016. It has triggered a systemic response to the underlying attitudinal problems in the creditor-debtor relationship and is acting as a prophylactic for an acute condition. It can be stated that the Code has made an impact in the way repayment of debts are being viewed and treated by promoters and management of the defaulting firms. However, the full impact of the Code is yet to be measured.

It is also difficult to measure the direct contribution of insolvency system in national prosperity as it may fail to account for the ‘enabling’ role played by the insolvency system. There is presently no universally acceptable standard framework to track the outcomes of insolvency and bankruptcy regime in various jurisdictions, other than the Ease of Doing Business indicators. A single metric or a composite of metrics often does not capture softer aspects such as humanitarian approach to dealing with insolvency, or behavioural changes of stakeholders. It may not capture other systemic gains. Further, it is essential to capture both quantifiable and non-quantifiable outcomes of the Code.

An impact assessment of the Code is by an independent and credible institution is needed on an on-going basis to measure the tangible and intangible outcomes.

This will be the primary area of research by the Insolvency Law Academy.