Introduction –
The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. Before the introduction of IBC existed various statutes like The Sick Industrial Companies Act, 1985, the Securitisation and Reconstruction of financial assets and Enforcement of securities interest Act, 2002, the Recovery of Debt due to banks and financial institutions act, 1993, and the Companies Act, 2013 all of whose operations were involved in the insolvency process now reduced to IBC only. All these multiple legal avenues ultimately led to a large number of NPA’s being piled up and a number of creditors waiting for many years to recover their money. IBC aims at combining all these different avenues for better flow of credit within country.