CORPORATE BANKRUPTCIES IN INDIA – A Case study of JET AIRWAYS under IBC 2016

Abstract

This project investigates the serious problem of corporate bankruptcy in India with a special emphasis on Jet Airways, a leading private airline that experienced financial ruin and came into the Insolvency and Bankruptcy Code (IBC), 2016 regime. The study was conducted to identify the reasons behind such corporate collapses and evaluate the efficacy of India's insolvency resolution framework. Training and Learning Overview As part of my academic training, this study enabled me to understand corporate governance, financial distress, legal mechanisms, and strategic blunders that can cause the collapse of large corporations in a deeper manner. Through real-life case analysis and systematic methodology, I gained insights into how regulatory systems such as the IBC work in actual situations. Objectives of the Study The primary objectives of this project were: • To explore the domestic and international reasons behind corporate bankruptcy in India. • To evaluate the design, roll-out, and performance of the IBC, 2016. • To scrutinize the Jet Airways insolvency case in depth. • To learn lessons on enhancing policy, corporate governance, and the insolvency resolution process. Methodology The study employed a qualitative, case study method and relied wholly on secondary data gathered from: • Government and regulatory reports (MCA, IBBI, RBI) • Company accounts and stock exchange filings • News reports, court documents, and scholarly journals The research included thematic analysis of the financial collapse of Jet Airways, corporate governance failures, and insolvency processes under the IBC. No primary data (such as interviews) were gathered because of logistical and legal restrictions. Summary of Findings • Jet Airways collapsed owing to over-expansion, debt overload, poor corporate governance, and inability to respond to market competition. Page vi • The IBC established a formal legal process for resolution, but delays and regulatory barriers diluted its actual impact. • All stakeholders—creditors, employees, and regulators—suffered substantially both during and after the resolution process. • The case emphasized the requirement for sectoral reforms, enhanced NCLT capacity, early warning systems, and greater promoter accountability. Conclusion This initiative highlights that bankruptcy is not merely an economic failure—it is a failure of management, governance, and regulatory action. Although the IBC is a significant overhaul, its success hinges on timely enactment, sectoral clarity, and coordination between all parties. The case of Jet Airways is a useful learning template for corporate India, regulators, and policymakers so that insolvency can result in revival— not destruction.