Bankruptcy law

Bankruptcy laws in India are governed by the Insolvency and Bankruptcy Code (IBC) of 2016. The IBC is a framework that applies to individuals, partnership firms, and companies. It aims to: Promote entrepreneurship and credit availability, Balance the interests of all stakeholders, Maximize the value of assets, and Establish a time-bound process for insolvency resolution. 

The IBC includes the following features:

Time-bound processes: The IBC establishes time-bound processes for insolvency resolution.Licensed insolvency professionals: Licensed insolvency professionals conduct the resolution process.National Company Law Tribunal: The National Company Law Tribunal adjudicates insolvency resolution for companies.Asset sale: If insolvency cannot be resolved, the assets of the borrowers may be sold to repay the creditors. 

The IBC has been amended several times, including in 2021. Some of the amendments include:

Introducing the pre-packaged insolvency resolution process (PPIRP) for MSMEsSetting up a "bad" bank to take over stressed assets of banks