Debt Resolution Process - Indian perspective
In this blog, we shall discuss evolution of Debt Resolution process in India and provisions of three main debt resolution legislations. The blog is meant to present the subject in a nutshell, to any person who is interested in this subject. Debt resolution or settlement is an arrangement whereby creditors settle their dues from the debtor / borrower for a certain reduced amount, which ensures that they are able to recover at least part of their dues as against the possibility of a total loss. Thus the process tries to protect and balance the interest of both creditors and debtors. Historical perspective Reference to the concept of debt resolution can be found in early Roman law doctrine of Cessio bonorum (Latin for "surrender of goods"). It meant a voluntary action by a debtor to surrender goods to the creditors . It did not include a discharge from liability unless the property ceded was sufficient for the purpose, but it secured the debtor from personal arrest. T...