- Research/Scholar Paper name – “Critical analysis of Insolvency and Bankruptcy Code 2016”
- Author: Anita Mishra
- Institution: Kalinga Institute of Industrial Technology, Bhubaneswar, Odisha
- Affiliation: Centre for Study of Contemporary Legal Issues
- Date of Publication: 03/09/2021
In India, insolvency resolution has traditionally entailed several legislative instruments operating simultaneously Act, The Sick Industrial Companies is one of these statutes. 1985. Security and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002. In order to facilitate the payment of outstanding debts, SARAESI, the DRT Act1993, and the Companies Act 2013 each have their own asset realization and seizure procedures. Due to an excess of insolvency and liquidation statutes, there has been a great deal of confusion in the legal system, requiring the immediate renovation of the insolvency regime. There are numerous legal options available, as well as a crowded courtroom., India has amassed a stack of paper of NPAs and a huge waiting period for creditors in order to get their money back from defaulters. The Insolvency and Bankruptcy Code attempts to change the disintegrated Framework for corporate insolvency. The plan aims to facilitate the flow of credit throughout India and to instil belief in creditors for the timely disposition of claims. To consolidate current Individual insolvency and debt recovery laws and corporations into one law. The code unified the statutes regarding enforcing creditors’ rights and simplified the way in which Debtor Company can be revived without adversely affecting its creditors’ rights. Insolvency and bankruptcy are ways to provide relief for the justified entity in case of an unforeseen event. In India, there is no single law that governs insolvency and bankruptcy proceedings. Instead, the Indian legal system governs insolvency and bankruptcy in a remarkable number of laws.