Insolvency And Bankruptcy Code, 2016: VISION 2025

Introduction and Objectives

The Insolvency and Bankruptcy Code, 2016 ("Code") was enacted by the legislature as a key mechanism for addressing the companies/ partnership firms/ individuals ("Corporate") in distress through reorganisation and process of insolvency resolution. The new Code replaced all the foregoing debt recovery laws and created a single procedure to resolve the corporate distress pertaining to insolvency and bankruptcy. The Code empowered the creditors to examine and inspect the viability of the debtors before making business decisions. Further the delays in disputes were addressed by formulating a time-bound mechanism for resolutions which further helped in promoting entrepreneurship and availability of credit in the market. The quintessence of the new Code is to balance out the interests of all stakeholders and revive the Corporate as a going concern by way of timely resolutions.