The Insolvency and Bankruptcy Code, 2016 (Code), consolidates and amends a slew of legislations governing the legal framework relating to reorganisation and insolvency resolution in a time-bound manner.Insolvency is a state or condition of a person who is unable to pay his debts. Bankruptcy on the other hand is a situation whereby a court of competent jurisdiction has declared a person or an entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors.
At present, the laws governing insolvency and bankruptcy in India are not consolidated and are at time overlapping, involving several institutions such as the Company Law Board, Debt Recovery Tribunal, high courts, etc. A coherent and uni…
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