INTERSECTION OF COMPETITION LAW AND INSOLVENCY PROCEEDINGS: A CRITICAL ANALYSIS OF REGULATORY CONVERGENCE AND STRATEGIC IMPLICATIONS IN INDIAN CORPORATE RESTRUCTURING

AUTHOR – AAMISH MAAZ* & DR. AISHWARYA PANDEY**

* STUDENT AT AMITY UNIVERSITY UTTAR PRADESH, LUCKNOW CAMPUS

** ASSISTANT PROFESSOR AT AMITY UNIVERSITY UTTAR PRADESH, LUCKNOW CAMPUS

BEST CITATION – AAMISH MAAZ & DR. AISHWARYA PANDEY, INTERSECTION OF COMPETITION LAW AND INSOLVENCY PROCEEDINGS: A CRITICAL ANALYSIS OF REGULATORY CONVERGENCE AND STRATEGIC IMPLICATIONS IN INDIAN CORPORATE RESTRUCTURING, ILE MULTIDISCIPLINARY JOURNAL, 4 (1) OF 2025, PG. 1132-1141, APIS – 3920-0007 | ISSN – 2583-7230

Abstract

This research paper examines complex interactions between competition law and insolvency proceedings within Indian corporate restructuring frameworks. Fundamental tensions exist between these distinct regulatory domains—competition law pursuing market efficiency through prevention of concentration, while insolvency mechanisms prioritize efficient resource reallocation and corporate resurrection. Recent reforms, particularly through Insolvency and Bankruptcy Code, 2016 (IBC) and Competition Act, 2002 amendments, demonstrate evolving regulatory convergence requiring specialized scrutiny. This research critically analyses competitive implications of resolution mechanisms, procedural bottlenecks hindering synchronization, and judicial interpretations shaping this intersection. Utilizing comparative jurisprudential analysis from European Union and United States frameworks, this study evaluates strategic approaches for harmonization. Research findings reveal significant gaps in coordination between Competition Commission of India and National Company Law Tribunal during resolution proceedings, resulting in conflicting outcomes affecting stakeholders. This paper proposes integrated assessment mechanisms, timeline recalibration, and establishment of specialized adjudicatory panels to address jurisdictional conflicts. Ultimately, balanced regulatory approaches must preserve competitive market structures while facilitating corporate rescue, crucial for Indian economic governance through emerging insolvency paradigms.

Keywords: Competition Law, Insolvency Proceedings, Regulatory Convergence, Corporate Restructuring, Insolvency and Bankruptcy Code