1. INTRODUCTION
The Insolvency and Bankruptcy Code, 2016
("Code") seeks to consolidate the
existing legal framework for debt recovery in India. Prior to the
enactment of the Code, matters relating to debt, defaults and
liquidation were covered under the Companies Act, 1956 and later
the Companies Act, 2013, and the appropriate authority to manage
such matters was the Company Law Board. Since the Company Law Board
was the only authority handling various matters related to
companies, this resulted in delays, complexities, and higher costs
in the process of liquidation.
The aim of the Code has been to establish a creditor-in-control
regime, increase reliance on market mechanism for insolvency and
introduce strict timelines for insolvency resolution processes. The
Code is an all-encompassing law and provides rules and regulations
with respect to re-organization and insolvency resolution of not
only companies, but partnership firms and individuals as well.
Although the
