Changes In The Insolvency And Bankruptcy Code, 2016

Mrigank kumar, Bennett University, Greater Noida

I. Introduction

The Insolvency and Bankruptcy Code, 2016 (IBC,2016) is a wide and multi-purposed legislation that covers insolvency resolution for both corporates and individuals. This law was made to support India’s progression to a developed market economy in the coming years. Prior to the IBC, 2016 the insolvency and bankruptcy laws in India were complicated and layered. The laws related to the individual insolvency and bankruptcy were looked over by two different legislations that were, the Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920. Other than these two acts the Companies Act both of 1956 and 2013 deal with laws relating to winding up and liquidation. Although the companies act dealt with these concepts but it did not deal with provisions relating to attempting rehabilitation or reorganization of the company. Also, since there was no time frame to complete the liquidation process of a company it took many years to complete the process itself.