Insolvency and Bankruptcy Code, 2016: Features, Mechanism and Challenges in implementation

The Insolvency and Bankruptcy Code, 2016 (the Code) is a significant reform in Insolvency laws in India. Until the code was implemented there were a dozen of laws dealing with Insolvency and Bankruptcy proceedings in India. A significant number of legislation and their overlapping provisions had made the recovery process time consuming and costly. Due to this India also appeared low in World Bank Ease of Doing Business Index. The Insolvency and Bankruptcy Code ensures certainty in the process, including what constitutes insolvency, the processes to be followed to resolve the insolvency, and the process to resolve bankruptcy once it has been determined. Present study has touched different dimensions of Insolvency and Bankruptcy Code-2016 and has concluded that unless and until the challenges in the way of Insolvency and Bankruptcy code are removed it will not function successfully. Present study also serves as a reference point for the imminent need to pursue reforms in Insolvency and Bankruptcy practices and processes prevalent in India.