The Insolvency and Bankruptcy Code was framed with an intention to streamline and ease the process of corporate insolvency aiming for a time bound insolvency resolution thereby preventing the erosion of the enterprise value of the Corporate Debtor in distress and promote ease of doing business in the country.
But when one critically examines the progress that the IBC regime made during the past three years it can be seen that the system has failed to meet the expectation of the financial market and the resolution process is exhibiting signs of sluggishness, which was the malady of the previous regime IBC intended to resolve.
It is pertinent to note that the provisions of the Code related to the Insolvency Resolution and Bankruptcy of the Individuals and the Partnership firms is yet to be made operational. There are several inherent factors in the existing system which will have to be rectified as an ongoing process.
A compelling Legislative system is one of the significant supporters of fruitful running of a business. Simplicity of working together positioning of a nation isn't just chosen by the simplicity of entering yet additionally the exit mode gave by the administrative structure of the nation. Bankruptcy systems in India as well as all over the world have gone through an array of changes. A bankruptcy structure of a nation not just impacts the simplicity of working together positioning yet additionally thusly majorly affects the FDI streams of a nation. The heaping NPAs of the financial Industry inferable from the corporate defaults had been a significant reason of worry for the public authority as it could destroy the development of the financial business which turns out to be the spine of the economy. The entry of the Insolvency and Bankruptcy bill has been one of the major endeavors of the public authority in settling the indebtedness issues. This paper endeavors to break down and decide the investigations embraced by different scientists concerning the Insolvency and Bankruptcy Code of India.
In this report, we present various advantages, impact of Insolvency and Bankruptcy Code 2016 on the economy and their drawbacks, and parameters effecting the lifeline of bankers, corporate debtors and governance. We also discussed all those factors in this report by which we can proved that IBC-2016 is a way ahead process.
Key words: Insolvency, Bankruptcy
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