Abstract

The Insolvency and Bankruptcy Code 2016 is the cornerstone of efforts to create an environment for healthy enterprises. The need for the code was felt as the last step after the adoption of the 1991 liberation and globalization policies of foreign entities in India that enabled multinational enterprises and establishment of the competition act of 2002 for a fair playing field for international and national competition. The final step towards a good business climate was the creation of an effective and trustworthy insolvency and bankruptcy system to make the right to leave accessible. The 'Insolvency and Bankruptcy Code 2016' is aimed at ensuring effective exit rights for international firms. IBC has played a significant role in establishing worldwide recognition of the quick and speedy mechanism which helped the improved the country’s image for business relations at global level. However, being nearly 7-year-old there is a long way for to go for the code. And being hit by the global pandemic has increased the pressure on machinery. The authors in this paper will briefly highlight the history of Insolvency and Bankruptcy laws In India and the developments which lead to the present Insolvency and Bankruptcy Code, working the IBC, its constitutional validity while discussing the major landmark judgments which lead to the present structure of the code. The authors would also touch upon the topic of cross border insolvency and provide suggestions on application of IBC in this ubiquitous era. The paper will rely on various reports and other instruments of legal doctrinal research.

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