Better Late than Never-The Insolvency and Bankruptcy Code, 2016: An Overview of the Authorities Under the Code

Abstract

India‘s ranking in World Bank‘s Ease of Doing Business 2020 has moved 14 places up and it now ranks 63 out of 190 nations. One of the key acknowledgements made in the aforesaid report relates to the enactment of the Insolvency and Bankruptcy Code 2016 (the Code), which has been applauded by the listing giant as a milestone economic and legal development. A conducive legal framework is the sine qua non for the development of an economy. For India though, this awakening came at the cost of piling stressed assets and double-balance-sheets syndrome. However, a timely recognition of the predicament is both buoyant and a pragmatic foot forward. Corporate debacles and failures are rife in the commercial cosmos. The Code provides a window to address such an exposition within the defined legal parameters as set out under the Code. It offers uniform legislation applicable to all companies, partnership firms, limited liability partnership firms and individuals. It is further aimed at addressing the concern of both domestic and foreign creditors- creating a level playing field thereby ensuring greater certainty around the bankruptcy process.