Insolvency and Bankruptcy Code, 2016

Abstract

Insolvency is a situation when an individual or organization is unable to meet its outstanding financial debt towards its lender as it becomes due. 1n a country like Indi a, where business entities not only bring revenues and jobs but also contribute to the economic growth of the country, the need of the hour is to have a mechanism by which insolvency can be resolved by changing the way of repayment or writing off a part of debt thereof. The burgeoning NP A's (non-performing assets) have become a major cause of concern for the lenders with the Sick Industrial Companies Act (SICA) and the Board of Industrial and Financial Reconstruction (BJFR) failing to revive the sick and bankrupt companies.