Legalities in Business: Analysis and

Redrafted Responses
Problem Statement 1: Insolvency and Bankruptcy Code (IBC) 2016
Question: Explain the rationale behind the introduction of the IBC and its impact on the
Indian economy.

Answer: The Insolvency and Bankruptcy Code of 2016 was introduced as a significant
reform in India, aimed at consolidating and amending laws related to reorganization and
insolvency resolution in a timely manner. It focuses on maximizing asset value, promoting
entrepreneurship, protecting creditors' interests, and balancing stakeholder interests. The
IBC has enhanced ease of business and investor confidence, positively impacting economic
stability and growth by providing a mechanism for faster resolution of financial distress,
thereby reducing non-performing assets in the banking sector.

Problem Statement 2: Role of Operational Creditors under IBC 2016

Question: Discuss the rights of operational creditors and the mechanisms available for them
to recover their dues.

Answer: Operational creditors, who are owed for goods or services provided, have specific
rights under the IBC for debt recovery. They can initiate the Corporate Insolvency
Resolution Process (CIRP) against defaulters, enabling a structured and equitable approach
to claim resolution. This balances their interests with those of other creditors and
contributes to equitable asset distribution.

Problem Statement 3: Corporate Insolvency Resolution Process (CIRP)

Question: Explain the Corporate Insolvency Resolution Process and its significance.

Answer: The CIRP, a key feature of the IBC, is designed to resolve insolvencies within a
specific timeframe. Initiated by creditors or the company, its goal is to explore company
revival, managed by an Interim Resolution Professional. This process is critical for efficient
resolution, minimizing losses, and upholding credit system integrity.

Problem Statement 4: Competition Law in India - Google and CCI Case

Question: Analyze the legal issues and implications of the case involving Google and the
Competition Commission of India.
Answer: The Google-CCI case highlights the challenges of applying competition law in the
digital economy. The CCI's investigation into Google's market practices, such as abuse of
dominant position, reflects the complexities of regulating market practices to protect
consumer interests. It underscores the need for evolving legal frameworks in the face of
emerging digital market dynamics.

Problem Statement 5: Monopolistic Practices and Role of CCI

Question: Discuss how the Competition Commission of India regulates monopolistic
practices to ensure fair competition.

Answer: The CCI is responsible for regulating monopolistic practices to ensure fair market
competition and consumer protection. It investigates and penalizes anti-competitive
activities, maintaining market integrity, encouraging innovation, and safeguarding
consumer welfare against monopoly exploitation.

Problem Statement 6: IBC 2016 and Ease of Doing Business

Question: Analyze the impact of the IBC 2016 on the ease of doing business in India.

Answer: The IBC 2016 has revolutionized the ease of doing business in India by providing a
unified legal framework for bankruptcy resolution. This has enhanced creditor rights,
reduced bankruptcy resolution time, and improved legal predictability, thereby boosting
investor confidence and fostering a more competitive economy.