ADR in Insolvency Disputes
The prevailing insolvency dispute resolution mechanism is adjudication, which has significant shortcomings: the irresolvable common pool problem, disruption of business, and high litigation costs.
The question is therefore whether insolvency disputes can be settled without (some extent of) adjudication. Namely, through alternative dispute resolution (ADR), which has become a counterweight to adjudication in insolvency disputes. In contrast to adjudication, ADR makes it possible to avoid the intrinsic shortcomings of adjudication.
Firstly, it aims to reach a peaceful settlement resulting in an agreement between the debtor and the creditors; secondly, it aims to reconcile the principle interests in insolvency cases (continuation of the debtor’s business and satisfying the creditors’ claims); and thirdly, the dispute is not resolved in public.
Topics to be covered around IBC
Cross Border InSolvency Disputes - How much Arbitration works in its present format under UNICITRAL model
Does IBC seems stuck between US and UK perspective - Debtors in possession - Creditors in control!!
Role of MEDIATION all through IBC - How important is that? Will India lead the model?