The Insolvency and Bankruptcy Code
In India, the Insolvency and Bankruptcy Code, 2016 is one matured step towards settling the legal position with respect to financial failures and insolvency. To provide easy exit with a painless mechanism in cases of insolvency of individuals as well as companies, the code has significant value for all stakeholders including various Government Regulators. Introduction of this Code has done away with overlapping provisions contained in various laws – Sick Industrial Companies (Special Provisions) Act 1985, The Recovery of Debts Due to Banks and Financial Institutions Act 1993, The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, and The Companies Act, 2013. Before the enactment of this Code, there were multiple agencies dealing with the matters relating to debt, defaults, and insolvency which generally leads to delays, complexities and higher costs in the process of Insolvency resolution. The ‘Board for Industrial and Financial R...