The New Insolvency and Bankruptcy Code 2016- An Overview

Abstract

The Insolvency and Bankruptcy Code, 2016 ([BC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on 5 May 2016. The speed of converting non-performing assets to performing assets got amplified after the coming into force of Insolvency and Bankruptcy Code, 2016. To cope up with the new regime of stressed assets, RBI passed a notification dated 12th February 2018.whereby it completely renovated the guidelines by withdrawing the existing guidelines and schemes dealing with stressed assets. The soaring NPA's have crippled the economic growth of the country which aggravated further due to global recession and other domestic measures like demonetization. New Tax Regime -GST. Government in unification with RBI and Standing committees since long are working on possible solutions to come back on the growth trajectory .Insolvency and Bankruptcy Code is a unified action for resolution and recovery of stressed and Non-Performing assets, that empowers both the operational and financial creditors to register an insolvency .The law before being conceptualized made in depth comparative study of such law in developed and developing countries , in many ways following its predecessors U.K , U.S.A and revising it according to Indian Economic and business environment. This paper studies about the new Insolvency and Bankruptcy Code 2016.