The Insolvency and bankruptcy Code, 2016 accord a procedure for resolving the insolvency of corporate debtors within the time period of 330 days called the corporate insolvency resolution process. Financial Creditor assesses to the authority if Debtor’s business is viable to continue or if other options for revival or rescue of debtors are available. In case this Process fails or the Debtor’s business cannot be made profitable and need to be wound up then the debtor will go for liquidation and assets of debtors are realized and distributed by liquidators. This paper aims to understand easily the concept and legal provision of the CIRP Process which seeks to provide resolution to a Corporate Person in case of default is made in making due payment.
In India, this law helps to redeem a business by immediate termination process without further reduction of the value of the goods. The code contains an administrator, debt management experts, information resources and judicial systems to help speed up the debt settlement process too thus leading to the creation of a new institutional framework compared to the original. It is the work of the debtor to begin the process of resolving fraudulent debts against corporate debtors.
