The Insolvency and Bankruptcy Code, 2016
("Code") is considered as one of the
biggest economic reforms. This Code gives flexibility to financial
as well as operational creditors to initiate insolvency resolution
process against those companies which have defaulted in making
payment of Rs. 1,00,000 (Rupees One Lakh) or more towards the
legitimate dues of the financial or operational creditors, the
entire process is altogether different from the process of the old
legislation namely 'The Sick Industrial Companies (Special
Provisions) Act, 1985 (SICA)'. Unlike SICA, the accumulated
loss(es) is not a criterion to invoke the insolvency resolution
process under the Code. This Code functions on the basis of default
in making payment by the corporate debtor to the creditors under
the Code. Since the inception of the Code, a total of 701 cases
have been admitted out of which 310 cases are pertaining to
operational debt. Over 2,000 applications have been closed,
resulting in a
