Draft Schedule
ILA – IIULER
ROUNDTABLE ON MEDIATION IN INSOLVENCY
Monday, 12th February 2024, IIULER Campus, Goa
In association with INSOL India
The enactment of the Insolvency and Bankruptcy Code, 2016 (“Code”) was a watershed moment in India for recovery of business enterprises in distress. Over the past more than seven years, law and practice of insolvency has matured to focus on entire value chains in addressing enterprise sickness and on the resolution of disputes through creditor in control and collective deliberation process. However, despite the significant improvements brought by the Code, the insolvency resolution process is still considered to be time-consuming and resource intensive.
A sound insolvency system is non-adversarial in design and process. Yet disputes may arise between parties in the process. Experience shows that multifarious disputes arise between the parties in processes under the Code. These disputes clog the boards of NCLT. To reduce the burden of NCLT, it is necessary to enable and promote alternative options to resolve disputes.
Mediation has emerged as an effective tool of dispute resolution in many jurisdictions and attained the status of ‘Appropriate Dispute Resolution’ mechanism. It offers strong incentives for parties to engage and look for a common business solution. Mediation can arguably serve a greater purpose since resources are limited and the need to save time and preserve business relationships is arguably higher. It being non-adversarial in approach can help in maintaining cordiality in business relationships and save honest entrepreneurs from the stigma of insolvency. Although it has not been used extensively in insolvency proceedings in India, its acceptability had rapidly increased in jurisdictions around the world. With the passing of Mediation Act 2023, the use of mediation is expected to gain momentum in India.
Recognising the value and merit of mediation, ILA and IIULER, in association with INSOL India, are holding a roundtable of select stakeholders and experts to deliberate on the application and use of mediation in insolvency, and the issues arising therefrom. The roundtable will be attended by policy makers, judges, representatives of insolvency institutions from India and abroad, mediation experts, lawyers, and academics. Attendance of roundtable will be by invitation only.
