Description

The preamble of the Insolvency and Bankruptcy Code, 2016 (the “Code”) makes the objective of the Code clear and unambiguous, by seeking to achieve reorganisation and insolvency resolution of corporate persons, partnership firms and individuals for, maximization of value of assets, promoting entrepreneurship; greater availability of credit and; balancing the interests of all the stakeholders, albeit in a time bound manner. Each provision of the Code was drafted keeping these principles in mind, and the introduction of this legislation was done with the aim of replacing the existing framework for insolvency which was visibly inadequate, ineffective and wrought with delays.